There are usually two options available in the event you need to commence Hong Kong company formation. The initial approach involves setting up a new company from scratch. One other approach simply involves purchasing a business that had been created.
When setting up a new company from scratch, you first need to perform a search for your company’s name Hong Kong company formation. It will often get you a lengthier time and energy to register a new company. A company registration license one of many licenses required. The license is normally inclusive of government fees that could total HK $ 250.
If you want to acquire an already created company, you’ll need to pick your company name from certain list. The list usually includes shelf company names that have never been used. The processing time for this method is significantly shorter than registering a new company.
Why Hong Kong?
This international city offers a very competitive economic environment. It’s an open and market oriented system that is without much government interventions. Investors have much freedom in choosing which business operations to undertake. This city tops the entire world economic environments when it comes to freedom of operations.
Another reason that endears this Asian City to investors as an offshore company location is its easy capital flow. The easy flow of capital from the city abroad increases your company’s economic freedom. Having less restrictions and controls ensures that major world currencies such as the US$, GB Pound, Japanese Yen etc. are remitted easily to and from the city.
There’s no requirement for any capital investment. As a shareholder you’re only needed to append your signature to the M & A declaring that you will contribute the company’s capital. You don’t need to pay up hardly any money to the company.
Opening an offshore banking account is simple during your Hong Kong company formation. All that is required of you as an investor is that you provide evidence of your address. You will need to provide a copy of your passport, your company documents and an over-all description of your business. These documents are widely accepted by many international bankers.
In this Asian City, trust laws are applicable. If as an investor, for any personal reasons you require your status hidden, you are able to do this by way of a trust arrangement. In such a scenario, the trustee holds shares for you personally whilst the beneficiary. He also holds the trust deed which acts as prove that he is the real owner of the shares. The trust laws are applicable in Hong Kong and not everywhere else. In countries like China where such documents are invalid, these laws are unenforceable and therefore ineffective.
You will need to keep the company’s accounting records and annual statutory audits. These must be filed to the City’s tax departments annually. For many business transactions, the city’s Inland Revenue Department requires companies to keep proper records and accounts. These are accustomed to ascertain precise figures of your incomes, expenses and losses.