There are usually two options available in case you need to commence Hong Kong company formation. The first approach involves setting up a new company from scratch. The other approach simply involves purchasing a company that has already been created.
When setting up a new company from scratch, you first need to run a search for your company’s name. It will usually take you a longer time to register a new company. A business registration license one of the licenses required. The license is usually inclusive of government fees that could amount to HK $ 250.
If you intend to acquire an already created company, you need to select your company name from a given list 註冊香港公司. The list usually consists of shelf company names that have never been used. The processing time for this option is much shorter than registering a new company.
Why Hong Kong?
This international city offers a very competitive economic environment. It’s an open and market oriented system that is devoid of much government interventions. Investors have much freedom in choosing which business operations to undertake. This city tops the world economic environments in terms of freedom of operations.
Another reason that endears this Asian City to investors as an offshore company location is its ease of capital flow. The easy flow of capital from the city to other countries increases your company’s economic freedom. The lack of restrictions and controls ensures that major world currencies such as the US$, GB Pound, Japanese Yen etc. are remitted easily to and from the city.
There is no requirement for any capital investment. As a shareholder you are only required to append your signature to the M & A declaring that you will contribute the company’s capital. You don’t need to pay up any money to the company.
Opening an offshore bank account is easy during your Hong Kong company formation. All that is required of you as an investor is that you provide proof of your address. You need to provide a copy of your passport, your company documents and a general description of your business. These documents are widely accepted by many international bankers.
In this Asian City, trust laws are applicable. If as an investor, for any personal reasons you require your status hidden, you can do this through a trust arrangement. In such a scenario, the trustee holds shares for you as the beneficiary. He also holds the trust deed which acts as prove that he is the real owner of the shares. The trust laws are applicable in Hong Kong and not everywhere else. In countries like China where such documents are invalid, these laws are unenforceable and therefore ineffective.
You need to keep the company’s accounting records and annual statutory audits. These need to be filed to the City’s tax departments annually. For all business transactions, the city’s Inland Revenue Department requires companies to keep proper records and accounts. These are used to ascertain precise figures of your incomes, expenses and losses.