Company Formation in Hong Kong – How to Incorporate a Company
How to incorporate a company in Hong Kong? You can make a simple visit to the office of the Companies Department in the Registry of Companies (the same as in China) and fill in forms online. After receiving approval from the company, you will be given a registration number and will be able to open an account at the designated bank. Opening an offshore company account is more accessible than in China and takes less than a week. But opening a local company bank account in Hong Kong is slightly more complex and needs the signatories and directors of the company to go to the bank personally for an in-depth Know Your Client meeting.
How to incorporate a company in Hong Kong? In choosing a company formation service in Hong Kong, you mustselect one that has been in business for many years. It proves that they have experience dealing with issues like company formation and offshore asset protection. The company formation service should also have well-established branches in other countries such as Australia, Seychelles, and Canada. You must also check their certifications, memberships, and affiliations. For example, the Company Registration Office in Hong Kong has been authorized by the Chinese Government to perform company registration functions.
Before you decide how to incorporate a company in Hong Kong, you must carefully consider the advantages and disadvantages of each offshore company formation option. You will be required to furnish details on your business objectives, and you will have to decide how much control you want over the company. It is important to remember that you will not enjoy any automatic rights to ownership. The company could be shut down without any penalties, fines, or seizures unless it had criminal proceedings.
When you register a company in Hong Kong, you are not creating a new company. Instead, you are just referring to another company. However, you will enjoy all the benefits of the company formation process: company name registration, issuing company checks, entering into trading and profit-sharing agreements, and entering tax registration. Plus, you will get to enjoy other benefits like paying minimal corporate taxes. However, be informed that registering the name of your business will cost you around $300. In addition, once you have paid the registration fees, you must pay the prescribed annual fee for company registration.
You may think that you can save a lot of money by conducting your business affairs yourself and forming the company yourself. However, companies that operate through offshore company formation have several advantages over their mainland-based counterparts. For instance, most of the paperwork you must do in company formation in Hong Kong will be relatively easy and quick to accomplish. You will only have to submit your documents and information once.
Another advantage of conducting company formation in Hong Kong is that the laws governing the registration of a company are simpler to follow. It means that you will better understand the requirements and procedures that must be followed in company registration in Hong Kong before you even begin thinking about incorporating your company. Moreover, the company formation office you choose to use in Hong Kong will take care of most of the paperwork for you and leave you with only the problematic details of company registration. Furthermore, there is also a strong need for companies to be licensed by the China Exchange, and it is mandatory for all companies that wish to operate in China to register with the CHEA.
It would help if you considered some disadvantages when deciding to conduct business activities using offshore company formation. Namely, you must comply with the law of the country where your company is registered. Moreover, if you decide to open an account in another country, you may be held liable for the transactions and activities performed in that foreign account. Therefore, it is recommended that you conduct extensive research on the country’s laws in which you intend to run your business before deciding to incorporate a company.
You can also use the services of an offshore company formation service provider who will help you in the process. Some offshore company formation service providers even help choose the best location in which to register your company. However, you should always bear in mind that offshore company formation in Hong Kong requires you to abide by the rules and regulations of the Chinese authorities. Additionally, there are penalties for tax evasion and other related offences.