how to set up a hong kong company

How  to  Set  up  a  Hong  Kong  Company  Hong  Kong  provides  entrepreneurs  a  number  of  options  as  to  what  kind  of  company  to  set  up  in  Hong  Kong.  Liberal  government  laws  in  Hong  Kong  make  it  the  offshore  destination  of  choice  when  it  comes  to  company  registration.  Most  entrepreneurs  prefer  to  set  up  a  Hong  Kong  company  as  a  Limited  company  for  the  following  reasons.      

Limited  companies  

Limited  companies  are  companies   that  shoulder   limited   liabilities   from  a   legal   standpoint.  The  liabilities  of  the  shareholders  and  proprietors  are  limited  to  the  value  of  the  shares  they  hold.  This  means  during  a  legal  tussle,  the  proprietor  or  shareholders  can  only  stand  to  lose  the   nominal   value   of   their   shareholdings.   The   director   or   shareholders   do   not   bare   any  personal  liability  to  the  debts  of  the  company  whatsoever.    

In  non  limited  companies  the  liabilities  of  the  investors  is  not  limited  to  their  investment  in  the   company.   The   shareholders   are   directly   responsible   for   the   creditors’   losses   and   are  required  to  repay  the  debt  their  company  has  caused  to  its  creditors.    

Conditions  to  register  a  limited  company  

Hong  Kong  law  allows  for  a  company  to  be  set  up  by  one  or  more  persons;  furthermore  one  single   legal  or  natural  entity  can  act  as  a  shareholder,  a  director,  a  proprietor,  an   investor  and  also  a  company  secretary  simultaneously.  There  are  no  restrictions  to  the  nationality  of  the   secretary   involved;   however   it   is   required   that   he   or   she  must   reside   in   Hong   Kong.  There  are  no  restrictions  on  the  domicile  or  nationality  of  the  other  members  involved.  

A  company's  executive  body  is  made  up  of  its  board  of  directors  who  are  responsible  for  the  daily   functions,   supervision  of  documentation  and  audits,   and  deciding  and   implementing  the  future  course  of  action  for  the  company  in  the  AGM  –  Annual  General  Meeting.  As  per  Hong  Kong   law  an  AGM  must  be  held  at   least  once  a  year;   there   is  also  a   regulation   that  there  cannot  be  a  gap  of  more  than  18  months  between  consequent  AGM's.  

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An  alternate  route  to  set  up  a  Hong  Kong  company  

If  you,  as  an  investor,  wish  to  set  up  a  Hong  Kong  company  in  a  hurry  and  cannot  afford  to  wait   to   complete   the   normal   start-­‐up   procedure,   there   is   the   option   of   acquiring   a  readymade  shelf  company.  Shelf  companies  are  companies  that  have  not  commenced  any  sort   or   form  of   business   and  have  no   economic   presence   in   the  market;   such   companies  have  no  liabilities  or  debts  at  the  time  of  purchase.  Shelf  companies  are  set  up  as  per  Hong  Kong  laws  and  are  registered  with  The  Registrar  of  Companies  and  have  already  attained  a  Certificate   of   Incorporation.   The   cost   to   purchase   a   shelf   company   is   almost   comparable  with  that  of  the  cost  to  start  up  and  register  your  own  company  in  Hong  Kong.  The  company  must   then  obtain  a  permit   from  the  Business  Registration  Office   to  engage   in  commercial  activities.    

It   is  more  expensive  to  set  up  a  Hong  Kong   company  of  a   limited  nature  as  compared  to  non-­‐limited   companies,   however   the   benefits   of   a   limited   company  make   it   the   obvious  choice  for  an  offshore  business.  

Healy   Consultants   is   a   leading   corporate   services   firm   that   assists   entrepreneurs   and  investors  with  the  processes  required  to  set  up  a  company  in  Hong  Kong,  along  with  a  range  of   other   corporate   services.   The   firm   provides   tailored   solutions   and  manages   the   entire  process   of   Hong   Kong   company   set   up   to   assist   entrepreneurs   meet   their   business  objectives.   More   information   on   company   incorporation   can   be   found   by   visiting  http://www.healyconsultants.com.  

www.healyconsultants.com