Formation requirements of a limited company

This article will guide you through the requirements of a Hong Kong Limited Company

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Formation requirements of a limited company

Establishing a business within Asia is the easiest in Hong Kong, where the wants of a Hong Kong Ltd. company are comparatively less strict than other Asian countries. The explanations for this are often the long British history and influence in Hong Kong; making it a business-friendly nation that has an open, internationally-minded environment. Also, thanks to the predominant use of the English language, Hong Kong features a much higher advantage for business over the opposite Asian countries.

Private Ltd. Company is the most traditional considerable business that is registered in Hong Kong. These sorts of organizations have an everlasting structure, strong public perception, indebtedness for its owners, and a discrete legal personality. Also for an Ltd. company, the transfer of ownership and therefore the raising capital is more convenient in comparison to a sole proprietorship and partnership.

Here you'd determine all about the wants of a Hong Kong Ltd. company, and it's strongly advised to take the assistance of knowledgeable firms like ours. We are well versed with the local legislation governing the companies and even have years of experience to handle the continued compliance and regulatory obligations.
The other requirements for Hong Kong Ltd. Company is mentioned below.

Fulfilling the wants for setting up a Hong Kong Ltd. aren't too difficult, in terms of the corporate directors. one person is often kept as the director of the corporation, where the corporation must have a minimum of one director. There's no limit for the number of directors, but each director must be appointed and should get to sign official documents of the company. The director doesn't need to be a resident of Hong Kong but has got to be a natural person above the age of 18.

This person shouldn't have any past records of being convicted for any malpractices or bankruptcy. Furthermore, there's no hard rule where a director has got to be a shareholder of the company, and a specific company corporate director also can be a director alongside the chief director. However, the corporation cannot appoint just one corporate director on incorporation, as there must be a minimum of one natural person appointed.

The directors would be liable for the company and are ready to make important business decisions and sign documents under the corporate name. they might even be ultimately liable for the corporate filings and other government matters. The board meetings for the administrators are often held in any part of the planet.

Another one among the wants of Hong Kong Ltd. is that it must have a minimum of one shareholder, with a maximum of fifty shareholders. Anything above 50 shareholders would be categorized as a public company, which might have a special set of rules and company regulations.

A shareholder is someone who owns a bit of the company’s stock and receives the advantages of the success of the business. they're the owners of the corporation, can receive the earnings of the company within the sorts of dividends, and vote on important company matters like the direction of the corporation and therefore the number of company directors. The shareholder doesn't get to be a resident of Hong Kong but has to be a minimum of 18 years old. they will even be the director of the company if they wish to be.

An important aspect of this is that the shareholder can be a corporation or maybe just an individual, where a 100% ownership of the shares is permitted to be of foreign or local shareholding. Therefore, a corporation is often owned entirely by another Hong Kong person or company, or by an international company or person from anywhere within the world. Also, a nominee is often designated as a shareholder for the Hong Kong company. The meetings of the shareholders are often held in any a part of the planet, but generally should be conducted annually.

Other than the shareholder and the director, each private Ltd. company in Hong Kong is required to possess a company secretary also. This is often not a secretary who does the clerical add a corporation or answers the involvement of the corporation.
As per the principles of the Hong Kong incorporation, the corporation must hire a company secretary who would make sure the regulatory and legal compliance and can also as represent the company in any legal documents. The secretary is often an incorporated company in Hong Kong or a private who may be a resident of Hong Kong.

Also, an individual who is that the director or the shareholder of the company can't be the company secretary. Director’s of a Hong Kong company is liable for maintaining the records and statutory books of the business. alongside this, the person would also make sure the compliance of the corporate with all the regulatory requirements, and sign any necessary documents for the company.

Our company is a local Hong Kong company secretary, and alongside the incorporation and company registration services, you can also hire us to also act as your company secretary if you select so. We would handle all the corporate filings to the government, and make sure the entire process is smooth and documents properly filed on time.

There are no minimum requirements for the share capital of a new Hong Kong Ltd company. a corporation in Hong Kong must have a minimum of one shareholder and a standard share issued during the formation of the business. The share capital of the corporation doesn't get to be within the Hong Kong Dollar and may be in any of the world’s major currencies, like in USD or EURO.

The Hong Kong company regulation doesn't require that 1 share must be worth 1 HKD. It's the entire share capital available and registered for the corporation. The founding members aren't required to submit the initial share capital amount to the government nor into the company bank account. they'll prefer to deposit this amount into the corporate checking account afterward, but aren't required to by law when incorporating the corporation. However, this is often still owed by the shareholders to the corporation, so remember of this for companies with issuing a high value of share capital.

Shares also can be smoothly transferred, subjected to a government stamp duty fee. Further share capital for the corporation also can be added to new shareholders of the company, within the sort of a share allotment. However, bearer shares aren't allowed as per the government requirements of a Hong Kong Ltd. company.

A limited liability company is one where the shareholders are lawfully responsible for the debts of business, only to the extent of the entire value of their shares. This suggests an individual who holds shares of a corporation isn't personally responsible for the entire debts of the company within the case of a possible lawsuit or bankruptcy over the entire value of the shares. This is often the most common sort of company in Hong Kong.

The document requirements of a Hong Kong Ltd. company that you simply wish to open are:

The document requirements of a Hong Kong Ltd. company that you simply wish to open are:

  • The copy of the company’s Articles of Association. (This is a politician document provided by the firm assisting you with the incorporation of the corporation .)
  • A completed incorporation form with the subsequent details: – Number of shares haunted by shareholders
    – Share capital registered on incorporation
    – Details of company secretary, directors, and shareholders
    – Brief description of business activities
    – Registered address
    – name
  • For non-resident shareholders and directors: a replica of your passport and overseas residential address proof.

Moreover, any foreigner who wants to line up a corporation in Hong Kong has got to consider subsequent things:

  • A foreigner can easily be a sole shareholder or director of a Hong Kong company with no requirement to be a Hong Kong resident.
  • Even though there's no need for the physical presence while registering and forming the corporation in Hong Kong, there's a physical presence needed for the checking account opening process, counting on the bank of choice.
  • Those who don't want to maneuver to Hong Kong can efficiently run their business remotely overseas.

The company would also have to provide an area Hong Kong address because the official registered address of the corporation to register in Hong Kong. This is often a government requirement for all companies incorporated in Hong Kong. This address would be registered to the company and would receive important government mail. Also, the registered address has got to be a physical address in Hong Kong and can't be a PO box. Just in case you do not have a registered address for the company, you can choose to use our registered address for the new Hong Kong company alongside many other services.

This registered address differs from an address for the company. An address is that the location used for a corporation in terms of invoicing, contracts and agreements, and receiving business mail, like from business partners or from the bank. Our company also provides this service for companies to possess an address located within the heart of downtown Hong Kong. Our location in downtown Hong Kong is often used for invoicing, and for receiving and sending mail to anywhere within the world, with signing up for these services.

With the knowledge and details of a Hong Kong company, you're already on your way to starting a limited liability company in Hong Kong . Our company offers an entire one-stop package for company incorporation and other company services. you'll select the specified service as per your choice and wishes from the customizable package of services by us.