In the past, the most popular method for establishing businesses in Hong Kong was to apply for a “Certification of Registration” (COR), which is required before a trade can take place. Companies in Hong Kong are required by law to apply for this certification and have a paper trail to use for their records. However, the advantages of company formation in Hong Kong are many, including saving on paperwork. Below are just a few of the benefits of company formation in Hong Kong:
Limited Liability Company – One of the significant advantages of Hong Kong limited company registration is that you are required to have a limited liability company. It is because a business is only one person and therefore cannot have several significant controllers. If a company wants to act as a sole proprietor, it must be registered under the personal corporation scheme and provide proof of funds at hand to the controller.
Registered Office – To conduct business in Hong Kong, a company must have its registered office, which is generally located in the commercial or trading district of the corporate hub of the city. You will not open up an office in Hong Kong if your company does not have a registered office. It is a critical element of the corporate laws in Hong Kong and a prerequisite to all businesses wishing to do business in the territory.
Limited Liability Company – One of the most critical aspects of company registration services in Hong Kong is to ensure that there are no mistakes in the information provided when incorporating. Formulating an accurate accountancy history and incorporating the correct spelling of words is not just a question of checking with the law enforcement agencies. The accountancy history should include the full names of every director and shareholder and the relevant statutory definitions. The purpose of this document is to ensure that the paper is error-free and an accurate reflection of the original entity that wishes to incorporate. All major global accounting standards must be met for the formation to be valid.
3E Accounting Information Required – Companies in Hong Kong will also need to provide their shareholders with the necessary information required to lodge their annual income tax return. Again, this is a legal requirement, and a company must comply with the rules set out by the tax authority. These rules primarily discourage ‘shore’ incorporation and ensure that legitimate businesses in Hong Kong pay taxes based on income earned locally. Again, one of the most important documents that a shareholder will need to provide is the ‘letter of appointment’ for the company: the company’s full name, address, registered office, and contact details of its directors. A shareholder will also need to provide information about its directors and its proposed nominee for the office.
Corporate Registered Address and Employees – Although the law does not require a company to have its address, it requires a company secretary and a registered office. In Hong Kong, these offices are located at the Commercial Registry Office in the Central Business District. In addition to being the company’s address, these offices are also the offices that must be accessible to its directors and employees. Unless the company secretary and the registered office can guarantee that both addresses are always in operation, a company can avoid being subjected to the mandatory requirement of registration of its registered office.
Limited Liability Company – Once all the formalities for incorporating a business have been completed, a new set of company requirements will be needed. Written Request for Registration’ is the first requirement that a company must meet.
Companies Registry – The following form that the company must fill out is the company registration form. On this form, the company details will be entered. These details include the name of the company, its registered office, and its statutory authority.