For most Hong Kong people, the term” incorporation” may be synonymous with “hiring”. However, there are other benefits of company formation in Hong Kong other than hiring an accountant. Forming a company is the simple process of giving a legal identity to a business. It is advisable to seek a qualified person who has the necessary expertise to incorporate a company. The following article provides an insight into some of the benefits of company formation in Hong Kong.
Companies in Hong Kong incorporation can be duly registered either by signing the Articles of Association or putting in the necessary forms and submission to the statutory offices. Unless the company is formally registered, it cannot perform business transactions or receive any loan or grant. The only exemption is that a company can have one or more directors, but it cannot act as the entire incorporated entity.
The only requirement for the formation of a company in Hong Kong is that it should be registered. Registration can be done either at the Secretary of State or at the Comptroller of Forests’ office. In a limited liability company (LLC), one shareholder is considered the secretary, and the other members are known as the partnership. The limited liability company can adopt any number of corporations, each bearing the name of the company. These corporations act like private companies under the statutory requirements of Hong Kong law.
When you wish to incorporate a Hong Kong company, you should follow the Hong Kong start-up stipulated procedure. The basic requirements for this procedure are that you should be a permanent inhabitant of Hong Kong, and you should possess the minimum personnel qualifications. Moreover, you should include a legal age of eighteen years, a SIN number, and pay tax following the tax regulations in Hong Kong. Furthermore, suppose you have any other foreign offices. In that case, you should provide them with a copy of the ‘operation documents’ along with their respective registration fees to comply with the rules and regulations of Hong Kong company registration. There are three simple ways by which you can incorporate a business in Hong Kong: one way is through the ‘self-settlement’ method; two ways are through an application through the agent system and the last way through the register of companies. All these methods take different times to accomplish, and thus you should ensure that your company has enough time to go through the procedure correctly.
Self-Settlements are considered the most straightforward and most time-efficient method of incorporating a business in Hong Kong. This procedure’s procedure depends on the company’s proposal to the Hong Kong jurisdiction’s authorised authority. Once the officers receive and approve the request, the proposed company is granted the right to form a corporation or any other business entity under Hong Kong’s laws.
The third method in terms of the complete incorporation procedure in Hong Kong is through the ‘No Party Organization’ (NPN) form. There is no necessity for a nominee or a director for the entire incorporation procedure with this NPN form. There is only one certified signor of the corporation in the NPN form, i.e., the company secretary. Furthermore, there is no need to give the directors full consent to adopt the NPN process with this form.
Signing the incorporation document is not just one thing to do in the Hong Kong company incorporation process. You also need to sign anything else on the agreement page including the payment agreement, the loan agreement, the partnership agreement, the trust deed, the association’s document, the nominee clause, the payment receipt, and the land and house register. As well as signing these documents, you also must submit a ‘power of attorney’ to the company secretary. Power of attorney is just like an instruction to the company that he should handle any legal matters. It is also useful in case of any disputes with your agent in Hong Kong.
Besides these things, you need to have a registered office. Registered offices are used to run the business. A registered office is located at the most suitable place where the company affairs will be settled. This office should be at the address you have chosen for tax reasons and offshore companies’ regulation. When you open an offshore company in Hong Kong, you must bear in mind that you must have a permanent address and this address should not change for your business.