Important Considerations When Setting Up a Company
Hong Kong is an excellent opportunity for foreign investors or entrepreneurs looking for an offshore company setup in any Asian nation. The city-state is also the right gateway to do the international business setup. It offers many advantages for foreign investors, including lower tax rates (both local and central government) the easy process of company registration, tax rebates for foreign companies’ employee expenses, and many more benefits. The Hong Kong stock exchange is also a preferred venue for trading, along the low cost of living makes the city a preferred location to settle down.
Hong Kong Company Formation – The company setup in Hong Kong follows the same procedure as any other country. There are two types of company formation in Hong Kong: the ‘one director’ method and the ‘multi-registry’ company formation. In the one director company formation, one director is generally responsible for the company’s affairs. He is the only authority over the company’s trade, finances, and other important matters related to the company. This type of company setup is considered less secure since it may not limit the directors’ liability. Hence, the company’s trade and assets are not protected under the law.
On the other hand, several individuals are listed in the company formation as its shareholders in the multi-registry company formation. This type of company formation does not allow limited liability. Since the shareholders are not directly liable for the company’s activities, they enjoy a better taxation system, since they will be paying their taxes.
Opening a Business in Hong Kong – There are two options for opening a business in Hong Kong: setting up a local business office or setting up a foreign company in the Chinese territory. A local business office allows you to comply with the local rules and regulations regarding business registration and corporate taxes. You are also not required to hire a representative in China to open your business. On the other hand, a foreign company requires that it open an office in China to carry out its business there. However, a foreign company cannot operate its trade and transactions in China without engaging in a Chinese partnership. In this case, the company needs to get an agent who can represent and communicate with Chinese clients.
Business Management and Administration – The main objective of a private limited company is to create a separate legal entity for business conduct. Its management and administration involve different procedures, such as booking of capital, borrowing money, and making various business decisions. Besides, a private limited company’s primary aim is to create an income or source of profits. Thus, the company must be run efficiently and profitably. The management must work closely with the shareholders. The shareholders decide on the significant policies and strategies of the company.
One of the essential requirements in the registration of a private limited company involves the registration of its proprietor. The person registered as the proprietor is called the nominee director. He must be a resident of the country where the company has been set up. After the completion of the registration process, the nominee director will be responsible for managing the company.
Business Development – If you are interested in making your investment in Hong Kong, you might be interested in knowing that there are many opportunities for investing in the Chinese market. There are a lot of private limited company incorporations that provide you with the best possible investment opportunities. If you want to take advantage of the best options, you need to register your company. Your company should be written in your original company’s name, and your details should be indicated on the company’s office address.
Companies will typically be registered in the name of the original owner or the nominee director’s name. The company secretary plays a vital role in maintaining the company register and will carry out all the necessary tasks to ensure that the company is properly maintained. The company secretary plays a more significant role than you may think. The company secretary ensures that the company’s registered office is updated and that the company secretary can carry out the required tasks. The company secretary ensures that the statutory requirements of the Companies Act, the Memorandum and Articles of Association, and the rules made by the Companies and Registration Office have complied with it.