Company Formation – Things To Consider Before Doing In Hong Kong
The beauty of Hong Kong is the Hong Kong Company formation process. There are a lot of reasons to why you would want to do a company formation in Hong Kong.
Some of the most common reasons include protecting your investment, reducing paperwork, and avoiding taxes.
By default, UK domiciled companies have the benefit of not paying corporation tax. These benefits are only going to be available to those that choose to register a UK limited company rather than a UK incorporated company. It is up to you whether or not you wish to register your company as a UK limited company rather than a UK incorporated company.
Opt for a Limited Company
If you do decide to select Hong Kong as your incorporation location then you will have to choose the company formation type that you would like to do.
The most common company formation types include the Hong Kong Limited Company, a British Limited Company, a Specially Designated Subsidiary, and an EU Limited Company.
All three of these company formation types are valid and have been approved by the Chinese government. They are however subject to different rules.
One of the more important things that you should think about before starting your company is whether or not you intend to open a trading entity. If you do not plan on opening a trading entity then you will not need to register a Hong Kong trading company. You can instead register an EIM or Limited Intent Master International Company.
The next step in the process of company formation in Hong Kong is to create your certificate of registration.
Your certificate of registration will serve as your company’s identification document that will identify you as a company and also be the proof of ownership of your company.
A good rule of thumb when preparing your certificate of registration is to draft your certificate of registration using either LegalPad or Microsoft Word as a template.
The key : certificate of registration
When preparing your certificate of registration for company formation in Hong Kong, you must also pay close attention to the language on your certificate of registration.
This is especially true if you plan on operating in the United Kingdom or Australia. In most cases, the acceptable language on your certificate of registration will be English.
Another important documents that you will want to have ready for your company is a balance sheet. You will also want to have your annual accounts prepared so that you know how much money you have coming in and going out.
Be sure to have your directors complete the Annual General Meeting and Quarterly Audits. It is very important that you prepare your accounts for your company on a yearly basis so that you can show a change in cash flow for the year.
This is going to be a very necessary document for your company as it is going to provide you with your regulatory framework. You should be familiar with your UK limited company laws and be familiar with your Hong Kong Limited Company legislation.
You should also be aware of any changes that have been made in these laws in order to prepare a regulatory framework for your company.
Documents you need
You should also be prepared to send the necessary documents to the UK Registrar of Companies when you start your company.
Some of the documents that you will need include: a copy of your Certificate of Registration, a Business Register statement, an assessment statement, annual accounts, and PDS information. It is also recommended that you provide these documents as soon as possible as they will become an important part of your Company’s accounts.
Registration is not the only thing that needs to be done when forming a business in Hong Kong.
You will also have to register your company with the Registrar of Companies. You will also need to register your company with the China Securities Regulatory Commission.
After you have sent all of the necessary documents to the Registrar of Companies, you will be required to pay a certain filing fee and to register a limited company with the Hong Kong stock exchange.
You will also need to file an annual report with the Registrar of Companies.
You need an efficient business lawyer in Hong Kong
Having an efficient business lawyer in Hong Kong can help you take care of all of these legalities. We’ve spoken with several lawyers who can help you prepare the paperwork that you need to successfully set up your business in Hong Kong.
They can help you fill out your stock transfer documents, create your annual accounts, prepare your annual general meeting and quarterly audit, and annual reports, and they can even help you in other small matters that may come up when you first start your business.
