Basics on How to Register a Limited Company in Hong Kong
Registering a limited Hong Kong company has been made very easy and straightforward for foreign entrepreneurs in recent years. The recent amendments to the Companies Act, the Companies Registration Office rules and regulations, and the Companies Registry all make it possible for foreign companies to establish businesses in Hong Kong without any difficulty or red tape. With these changes, the process of how to register a limited company in Hong Kong has also been simplified. However, some people do not know the benefits of company formation in Hong Kong and how it can help them establish their own business in this exciting Asian city. Let us look at how these benefits can benefit you:
Limited liability company (LLC): This is how to register a limited company in Hong Kong. An LLC is a type of company that has limited liability. It means that the owners of the company have nothing to worry about if the business fails. All the company’s debts will be incurred by the LLC rather than by its owner(s). Aside from the limited liability, an LLC is also able to trade efficiently on the stock market. Therefore, even if the company fails, there are still other assets that the LLC can claim and liquidate.
Sole proprietorship: This is how to register a limited company in Hong Kong. To be registered as a sole proprietor, the person must own and manage the whole company. Only one director will also run the company. Although this might sound bad, there are many advantages. The first is that when the company is established, there won’t be any need to pay the capital gains tax (GCT) to the government. Another reason is that the limited company is considered a partnership for tax treatment.
Limited liability: A limited company is also called a limited partnership. There is a separate entity that owns and runs the company. There are some differences between a block and a limited company. For example, there is no need for voting and quarterly meetings among the members.
However, before you can set up your company, there are some other formalities to be completed. Firstly, you must decide on the name of your company. It is a good idea to hire a professional to help you pick a name. Once you have a word, it is essential to register it at the Companies Registry. Also, it would help if you issued company seals and stock books to your partners and shareholders.
Once you are done with these, you can now apply for the registration of your company. To do this, you need to visit the office and fill out the application form. The document is then processed, and it will be read and signed by the authorized officer. You then must attend the Annual General Meeting to become registered formally.
Once you are registered, you are required to open the company seal and stock book. It would help if you also issued some stocks to your partners and shareholders. Before you end the process, you will be asked to submit audited financial statements to the SIC. Lastly, the company directors and partners sign a document agreeing to the Companies Registry registering a limited Hong Kong company. It concludes the necessary steps on how to report a limited company in Hong Kong.
how to register a limited company in Hong Kong