Company formation in Hong Kong can be difficult if you do not follow the correct process. In order to start a business in this Chinese-dominated country you have to be extremely careful about the laws that govern this procedure. After the passing of the 1997 revisions to the Companies Laws, the process of company registration in Hong Kong has undergone major changes. Besides these, there are also other compliances and exemptions included in the new code. It is therefore essential that you pay attention to all these factors before you start your company.
The Registration of Companies Act has been modified to allow company formation in Hong Kong without prior registration. Previously only non-government organizations (NPOs) were allowed to initiate company registration. There are two options available to NPOs: either they can register the company by themselves with the Companies Registry at the Hong Kong Trade Registry Office or hire a local attorney to act on their behalf. The Companies Registry allows NPOs to set up a company for up to three years after which it must be registered with the office. The Companies Registry office also acts as the Societies Certificate Body for most NPOs and works closely with the Bank of China.
For company formation in Hong Kong, all documents are required to be filed with the Companies Registry. Most of these documents are simple office documents like the Memorandum and Articles of Association. However, if the NPO wants to incorporate a limited liability partnership or a corporation, they will have to file the appropriate corporation forms with the Office of the Secretary of State. Once these files have been filed with the office, the company secretary will review them and give a decision on whether the application is in conformity with the law. If the company secretary agrees that the application is in conformity, then the document is approved and the company secretary forwards it to the Registered Agents (or Registered Agents of Composition) of the company.
After the approval of the application, the Registered Agents of Composition will forward the documents required to the office of the Secretary of State. These documents required include the Articles of Association and the Memorandum and Articles of Association. These documents are then forwarded to the applicant who must follow the stipulated procedure for incorporating the new company. The applicant can also apply for the Company’s Registration from the Commercial Courier Company of Hong Kong. This service is usually available at a nominal fee.
There are two more specific requirements for company formation in Hong Kong. First, it requires the applicant to pay the annual tax rate. The rate of tax depends on the corporate tax rate set by the government of Hong Kong. The second requirement is that all shareholders must have voting rights which is not provided in the case of limited liability partnerships.
If you are a person who wants to start a new business in Hong Kong, you need to understand the requirements for company formation in Hong Kong. You can use the services of a professional confidus solutions provider to help you understand the procedures of registering a company. There are many advantages of using the services of such a person.