Setting up a company in Hong Kong

There are a number of options to choose from once you have decided to establish an investment in Hong Kong City. For one, you can opt to set up a limited company which is basically the most common type of investment. This particular company that is fully incorporated in Hong Kong and the business owner has the privilege of taking advantage of all the tax benefits. Similarly, this type of company also gives the owner an opportunity of taking advantage of all the concessions available for this group of investors. This may include Closer Economic Partnership Arrangement and even Free Trade Agreements with Mainland China.

Alternatively, an investor can decide to have a branch a Worldwide Company in Hong Kong. The registration of such a company with the Companies Registry is however different from the regular limited companies. In this type, the owner of the company is expected to register the branch as a Non Hong Kong company and it should be done within the first month of establishment. It is however of importance to note that this type of company is not a separate legal entity from the original parent company and can therefore leverage funds off the credit rating of its owner. Closely related to this is the representative office. Actually, this is not a company but just an office of a larger company that may be situated outside Hong Kong or even beyond Asia. The main aim of establishment of such an office is exploration and analysis of the financial trends of the Hong Kong market before eventually making the multimillion investments. However, those registered under this membership are not allowed to engage in any income generating activity within Hong Kong as that is not included in the legal agreement. Should they decide to engage in a transaction creating obligation, then the owner has no option but to change it to either a limited company or branch office.

Upon choosing the most suitable company type for your investment, you have to shift the focus to knowing the particular structure that is expected of each company. For instance, a limited company is expected to have at least a director and a secretary. The secretary, in case of an individual, is expected to be a permanent resident of Hong Kong for ease of operation. However, when the secretary of a registered limited company is an organization, then either their office or part of their business must be based within Hong Kong. On the other hand, the director can be a non-resident of Hong Kong and can also double up as the sole shareholder of the company. Of great importance is that a company’s name ought not to coincide with a similar one that had already been registered with the Registrar of companies.

 

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