Company formation in Hong Kong is an arduous process, and one must be aware of the laws and regulations. One can access valuable information on the subject from the Internet or attending seminars organized on the same.
To move ahead with Hong Kong corporation registration, one must have a clear idea of its business structure. There are three primary business structures in Hong Kong: the limited liability partnership (LLP), the company in which one owns shares in its name, and a corporation. While the limited liability partnership is relatively simple to set up, In the latter, it is essential to appoint a CPA (certified public accountants) to handle the business accounts. It is the only way to ensure that the company can meet the statutory obligations set out in the Companies Act and the Basic Article 32 of the Civil Offices Ordinance.
The benefits of company registration in Hong Kong to the company owners are primarily tax-related. It is imperative to pay tax on the company’s capital and the income earned through its operation. One of the primary reasons for this is the excessive paperwork that the clients must go through in filing the annual return. In the UK, on the other hand, one points to a yearly return that is directly submitted to the IRS. Thus, a lot of time and money are saved in the British system compared to the Hong Kong system.
Another benefit of company registration in Hong Kong is the legal rights provided to its clients. In particular, the Companies Act regulates the minimum amount of share class and the number of shareholders a company has at any given time. Moreover, the Companies Act also protects the clients’ legal rights to its trade secrets during its registration. It ensures that the client is not defrauded or his legal rights are infringed.
The Hong Kong legal system follows the Chinese character system. Therefore, the entire procedure is primarily based on the Chinese language. The documents must be entirely in Hong Kong; otherwise, any non-payment will invalidate the registration. All the stipulations and rules must be registered in the Secretary of State’s prescribed manner, known as the TAs.
If you plan to register your company in Hong Kong, the first thing you need to do is choose the right company registration service centre. You can contact the companies providing this service at the Commercial Registry Office or the Registration Office. Many institutes are offering this kind of service in Hong Kong. If you prefer, you can avail of the services provided by the secretarial service centre. The secretarial service centre usually works on a fee basis.
Another critical issue that must be considered before company registration, Hong Kong, is its formation. There are different types of construction permitted in the UK and US, and it is the same in Hong Kong. The Companies Act incorporates two corporations simultaneously, but the s are different in Hong Kong.
The next important issue to be considered in company registration, Hong Kong, is selecting the statutory register office. You can choose the office located in Central, Executive, Secondary or Corporate departments. Many professional accounting degree holders have served the statutory register office and are familiar with its work and format. They will also know the administrative positions and procedures in effect in the statutory office.