Hong Kong is considered one of the simplest places to do business nowadays. Setting up a Hong Kong business is easy and quick, devoid of excessive red-tape or unnecessary bureaucracy. Furthermore, Hong Kong embraces a very favourable foreign ownership policy by entitling a business’s whole shares to be entirely foreign-owned. Therefore, companies in Hong Kong have more opportunities to expand and flourish. It is because Hong Kong laws are much simpler than those in any other part of the globe. Following are some of the benefits of Hong Kong company formation.
To get into Hong Kong incorporation, you must comply with some simple procedures. The Companies Registry is a database of almost all companies registered in Hong Kong. It maintains a record of every entity, including its registered office and shareholders. You can easily access the Companies Registry by visiting its website. Once you get registered with the Registry, you can easily access all the information about the registered office and its registered owners.
After getting registered with the Companies Registry, you can easily apply for Hong Kong Company Registration. There is a simple procedure for this, which does not take long even if you are a corporate professional. Besides, before the company secretary carries out the actual incorporation, he will note all the required documents and particulars. Then the company secretary will return these documents to you along with the application forms and fee. Your records should then be submitted along with the necessary registration fees.
Besides completing the formalities, you will also have to submit a document called ‘statement of capital’ that will show the identity and liability of the directors of the company. As discussed earlier, you can become a director of an offshore company without having to appoint a director for the actual purpose of incorporating the company. However, once you are a nominee director, you will be designated as a company director. In your statement of capital, it is essential to mention that you are personally liable for the company’s funds. The nominee directors are also obliged to disclose their affairs to the company regarding their dividends or capital gains.
One important document to be submitted when forming a Hong Kong offshore company is the ‘approved brief’ that explains its business operations. A brief is considered the official document that describes all the information about a company’s business. The nominee director will have to submit the statutory declaration, the winding-up order, and the income tax return along with this document.
Companies that wish to register in Hong Kong can avail themselves of different offshore finance companies’ services. These companies provide the best incorporation services at affordable rates. They help you prepare the documents, get them approved by the relevant authority, and submit them to the tax system. Therefore, it becomes essential for offshore company formation in Hong Kong to seek one of these professional companies’ help.
There are several benefits of incorporating a company in Hong Kong. One of them is the option to use the stock exchange. Since the stock market in Hong Kong operates under the rules of the Securities and Futures Laws, companies can be listed in the stock exchange for trading. The company’s books and records are maintained by the company officers and traded through its online platform. Hong Kong companies must ensure that they pay the appropriate amount of tax on their capital gains. The two significant taxes that companies must pay are income tax and corporate tax.
In Hong Kong entities, it becomes necessary to follow the regulations and rules specified by the government. Besides, if there are any changes made to the laws, a new registered office must be notified to the Hong Kong SAR Government Secretary. The procedure to incorporate a business in Hong Kong can take about one month from applying. The process of corporation registration in Hong Kong can be made simple by following the instructions from the designated authorities and getting an expert corporate registration firm’s assistance.