Company Incorporation in Hong Kong – How it Works?
If you have decided to establish a new company in Hong Kong, you must understand the benefits of company incorporation. Among these benefits is the possibility of being able to enjoy tax benefits. The first benefit of company incorporation is enjoying better access to the Hong Kong stock market through an administrator’s appointment. Since most stock markets in other countries are closed on Mondays and Wednesdays, you may have to be absent from work for several days to file your company’s Articles of Association.
Moreover, when you register for company incorporation HK, you will receive its business registration certificate. This business registration certificate will be necessary for you to file your annual income tax returns. By choosing to incorporate a company in Hong Kong, you will benefit from the tax benefits companies offer to foreign investors. Companies that are registered in the offshore formation office in Hong Kong will be provided with a business address of the office closest to the company’s directors’ location. It means that offshore incorporation in Hong Kong is very convenient for those who want to do business in the city.
A company incorporation HK can also allow you to enjoy the convenience of online company registration. When you set up a new company in Hong Kong, all you have to do is select the company registration service provider that you prefer. A representative from the company registration service provider will assist you in completing the necessary forms. From there, you will be able to submit your application to the Companies Registry.
Aside from online company registration, another benefit of company incorporation in Hong Kong is the availability of a limited liability company. Limited liability company allows company owners to limit their liability to only their investment, assets, and profits. It means that if a company owner becomes bankrupt, their support will not be liquidated to pay off debts. Besides, a company owner can also retain the right to vote and sit on the board of directors. These benefits make it easier for small business owners to overcome financial obstacles such as debt issues. Therefore, many people say that incorporating their company in Hong Kong is one of the easiest ways to get started in the business world.
After a company incorporation in Hong Kong, you must follow specific procedures to incorporate your company. First, you must obtain a business registration certificate from the Registrar of Companies (ROMC). The business registration certificate will serve as proof that you indeed registered your company. Next, you must applyfor an International Business Number (IBN). You can visit the International Business Number Application Centre (IBNAC) in Central should you need more assistance on how to fill out the application for an IBN.
After obtaining all the necessary documents needed to incorporate your company, you may now file the company registration. After the submission of the company registration, you can issue new shares to your company. New shares document must then be given to your company. Issuance of new shares does not start after you issue new shares to your company. It is because the issuing company has to process the transfer documents first.
Transfer of shares from the issuing company to the new shareholders of the company is the next step. The transfer documents must then be received and signed by the company’s shareholder or members before they could be issued. Lastly, the shares are then transferred from the company to the new shareholders of the company. It is how the incorporation process takes place in Hong Kong.
Forming a company in Hong Kong is not very difficult. However, getting the whole procedure organized and managed can be a headache sometimes. Hence, you should hire the services of a company secretary to handle everything for you. The company secretary will take care of all the legal aspects of the entire procedure, ensuring that everything is dealt with well and that the company is adequately established.
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