Are you looking for the benefits of company formation in Hong Kong? Well, I have some good news for you! The benefits of company formation in Hong Kong are too many to cover in this article. However, I am going to give you a quick overview of the most important ones!
A limited liability company (also called a limited liability company or a limited company) is one of the most popular business registration models in Hong Kong. Using your Hong Kong limited company formation, to conduct your business, you will be able to avoid unlimited personal liability from personal business activities and thus enjoy low and easy tax collection. Moreover, incorporating a Hong Kong business is very fast and easy: you can have your company formation done within as short as two minutes. Thus, all the significant benefits of company registration in Hong Kong are available to you straight away!
If you wish to incorporate a business in Hong Kong, the first thing that you need to do is open an account at a reputed bank. You need to open an individual account or a company account. Most companies offering the benefits of company formation in Hong Kong recommend that you open a company account. Company accounts are more comfortable to maintain, more convenient, and more secure than individual accounts.
Next, you need to decide the names of your company. You have several options for selecting the name of your company. The company’s names may be based on the name of the individual who will be the director or the company itself. Alternatively, the shareholders can choose the name of the company to be incorporated. If you wish to incorporate a limited liability company, it is advisable to select the ‘limited liability’ option, since it affects the shareholders’ decisions.
There are some other factors to be kept in mind while incorporating a company in Hong Kong. One of the essential things to be considered is the type of company formation. You can choose between the ‘sole power’ company formation and the ‘limited liability company’ formation. Limited liability companies are top-rated because they have very few disadvantages.
One of the disadvantages is that they do not have the ‘personality element’. It means that it is difficult to make a good impression on your clients. Another drawback is that they do not provide an initial public offering (IPO) of the shares. However, with the help of an expert company secretary, it is possible to establish its primary identity. It can be done by having a registered office address in the places where you conduct your business (or the offices of your registered office address if you are incorporating a Limited liability company).
With this essential identity established, it is easy to set up different departments within the company and run independently. However, the company must maintain an annual return to be assessed as to its profit or loss. It is essential to follow all the Hong Kong jurisdiction rules and regulations when incorporating a Limited liability company. An annual return must be filed to the Securities and exchange authorities of Hong Kong. The company secretary also ensures that the statutory corporation rules and regulations comply with it.
There are various types of Limited liability company that can be set up for business purposes in Hong Kong. A simple one or an unincorporated limited partnership (ULP) can be created depending on the mode of operation that the company desires. An example of a simple limited company would be one that makes and sells cosmetics products. A ULP type can be established by making an annual payment into an escrow account. It is then divided into parts and held by the company secretary who disburses the profits tax based on its earnings per annum.