How to Incorporate a Hong Kong Company

If you wish to open a business in Hong Kong, you need to know the Basic Law of Companies and Management to incorporate HK Company in Hong Kong. As the name suggests, Hong Kong Company allows a person to incorporate his business in China with an authorized corporate document. The document needs to be signed by a notary public. To know more about the benefits of company formation in Hong Kong, read on.
Why Choose to Incorporate HK Company? There are several benefits to company formation in Hong Kong. Besides, the requirements and regulations in this jurisdiction are much less than other jurisdictions in China. As a result, it is easy to incorporate an HK company. Also, the paperwork and formalities are much lesser compared to other Chinese provinces.
What Are the Basics? To incorporate HK company, you will need the following documents: a signed application form, nomination of director or members, list of shareholders, Articles of Association, and register of company formation. You should keep these documents safe as they are used in the future for different purposes. For instance, before you sign the application form, you should print out the entire copy. It would help if you also took a printout of the register of company formation and association articles. These documents will prove your legitimacy as a valid and registered business.
How to Open a Bank Account? To incorporate the HK company, you will first require a bank account. The best option is to open a Chinese bank account. In the case of an American company, you may opt to open an offshore bank account instead. Besides a bank account, you will also require a credit card and a set of business cards.
What are the Basics? The next step is to transfer funds from the buyer’s money to yours. It is done by putting your offshore company setup into the account of the buyer. The payment is then made to your offshore company setup. Thus, your role in the company setup comes into action.
What are the Basics? A critical aspect of incorporating a company is that your company’s name needs to be registered with the relevant authority in Hong Kong.
If you have a limited company or an S corporation, you have limited liability, and the directors and shareholders are obliged to the rules of Hong Kong law. Thus, it would help if you were cautious in dealing with the legal system in Hong Kong. It would help if you made it a point to appoint a lawyer to handle all your dealings with the government agencies, especially the tax department. In any case, you can have your shareholders act as a legal representative of your company in Hong Kong. It is recommended that the company is registered with the Office of Corporate and Trade Registration as well.
Why Do I Need to Incorporate HK Company? Another essential aspect of answering your question on how to incorporate HK Company is that you do not need to pay any taxes to set up your business. All the transactions are done online via the internet. Hence, you do not incur any expenses in hiring a local office to register the company. However, if you do not wish to deal with the internet, you can pay a nominal amount to get your formation papers printed.
When Do I Choose to Incorporate? You have several companies that you can choose from to incorporate in Hong Kong. Among these are the Limited Liability Company, Public International Business Corporation, nominee service provider, and the nominee agent. Once you decide which one to go for, you can start your offshore company incorporation or fill out the application forms.
What Are the Main Benefits of Forming a Limited Liability Company? Firstly, it allows you to manage your funds much more comfortable. More importantly, this way of company formation also provides you with maximum protection under the law. In addition to that, once you have set up the company, you can avail yourself of many benefits, including tax benefits, professional assistance from a lawyer, and exemption from paying income tax on the profit you earn.
How Can I Acquire New Shares? After you have been incorporated in Hong Kong, you can issue new shares to your company. You need to purchase them at the current market price to give them to your shareholders; however, to make this process simple, you can issue them to the public through a broker.

How to Incorporate a Hong Kong Company
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