Opening a Company in Hong Kong
Opening an open company in Hong Kong is a relatively simple process and provides many benefits for your business. It does not matter whether you are planning to open a traditional office or a limited company. Both have their advantages and drawbacks. An open company in Hong Kong has all the benefits of an established company but at a much lower cost. Opening an honest company in Hong Kong can be very beneficial for your business, even if you only plan to operate in the commercial sector.
When you open company in Hong Kong, you do not have to register it as a company in its name. It means that the company becomes a sole unit and can continue to run without any interference from anyone. As a result, the company continues to exist in its form, separate from the person who established it. In other words, there are no complications associated with the registration of the company.
Another benefit of a company in Hong Kong is that it allows for anonymity. You do not need to reveal your address, your identity, or your company secretary when you establish an open company in Hong Kong – ever. You can use any office space and continue to conduct all your business dealings in the same way you would do at home. You do not need any employees, any hired help, or any registered office when you open a Hong Kong company – it is all done via email and postal mail. If you wish, you can also use an office space outside the country, but this will only be advised to you when you open a company in Hong Kong and find out how to register the company. You can choose any location for the company’s registration – even one of the rooms in your home.
Registration of a company in Hong Kong is also straightforward and easy – there are no complicated procedures involved, and if you wish, you can have as many directors as you like. However, before you open a Hong Kong company, you should ask whether one of the following options applies to you: you have one director, one secretary, or one shareholder. If you have more than one of these, then the company registration process will become much more difficult.
Once you have decided what type of company you have and what kind of registration you will undertake, you will have to choose one of the two options for company formation in Hong Kong: the Limited Liability Company or the Private Limited Liability Company. The first choice has apparent advantages over the second one. The Limited Liability Company allows for complete control over the business and its affairs, whereas the Private Limited Liability Company allows for a lower degree of power but still has a degree of choice. An annual report must be submitted to the Companies Registry under the CLQ Code of Conduct. The company must have an office in the UK, which is not required of the private limited liability companies. The company secretary is the person who will handle the day-to-day affairs of the company and must be registered with the Companies House.
Choose the limited liability company option for company formation in Hong Kong. You will have to provide proof of identification, and your address before the Companies House will grant you an application to register the company. You will then be required to give the Companies House a deposit, usually a percentage of the company’s share capital. Suppose the company meets all the other conditions and receives an ordinary resolution from the shareholders. In that case, you will be allowed to open an office and begin operating as a legal business. All the usual legal procedures apply to this step. It would help if you ensured that all the other methods are followed, including paying the annual report and annual general meeting.
Suppose you choose the company formation option of an open company in Hong Kong. In that case, you will still be required to submit a list of shareholders, including you as a shareholder and your partner or any direct or indirect shareholders. It also includes the names and addresses of the company’s initial members and their address and business nature. The company’s general meeting must approve the list of directors, and it is this list that will be used to administer the company.
There are, of course, some minor formalities after you have established your company, and these include the lodging of the annual reports and general meeting. However, these are all extraordinarily minor and take place at a later date. Besides, after you have registered your business address, you will be required to pay a small amount of registration fee, otherwise known as the statutory fee. This fee is charged to ensure that the correct procedure for your company’s registration has been followed. Failure to pay the statutory fee within a specific time will result in your company formation cancellation.
open company in Hong Kong