Forming a Company in Hong Kong is not a complicated task by any stretch of the imagination. There are three basic requirements for starting a company in this part of the world. Firstly, you have to be a permanent resident of Hong Kong, and secondly, you need to open an account at the Bank of China, the leading financial institution in Hong Kong. You can open an International Business Company with most of the banks in the region and the most prestigious multinational companies like Citibank or HSBC. Opening an account is just one of the requirements for company formation in Hong Kong.
You must also ensure that you have a registered office in Hong Kong for Hong Kong corporate formation. This office serves all the purposes of the company. It is the central registration office as well as the place of the company secretary and accountant. The registered office is supposed to be a well-kept and busy office, preferably on the top floor of some high-rise building. It is the best location and the most convenient for a large business to conduct its affairs in Hong Kong.
The next requirement for company formation in Hong Kong is that a qualified and Hong Kong company secretary and a certified public accountant should be present and working and a company secretary who is a member of the Institute of Chartered Accountants of Hong Kong (ADHO). It is always advisable to get all these people qualified and approved by the relevant authority so that nothing falls through the cracks. The next step involves the submission of the ‘Articles of Association’ along with the statutory fees. Remember that a one director limited company is separate from the nominee or the director of the firm.
After this, the company secretary will draw up the Articles of Association and submit them to the Registrar of Companies for the Company Registration under the Companies Act. In the meantime, the firm will have to provide a bank account opening letter from the firm’s nominee. These letters should accompany the Articles of Association and the statutory fees. In case there is any question whether the nominee can follow up on the banking inquiry, it is advised that he/she does so.
A firm is then permitted to carry on its business activities under the name it has been set up under it. Hence, it is necessary to have a legal term, and it is also essential to note that the company must bear the original signatories of the Articles of Association. If the company is a limited one, then only three signatures are required. Other than that, if the firm has no members, then the firm’s business activities will not be permitted, and the company formation process will come to an end. Specific simple steps need to be followed for Hong Kong company formation.
When the document is submitted to the Registrar of Companies, the firm’s nominee will be asked to select a trading name representing the business. There are multiple candidates for the trade name, the first trade name nominated by the nominee will be carried forward. Once the trade name is decided upon, the company name and the abbreviated version of the business’ name should be submitted to the Registrar. The abbreviated form of the firm’s name is’Ltd’or ‘Tradescape Limited’ or ‘LDN’.
If a firm has only one member, then the name of that member is sufficient for the task, and this also saves the costs incurred by having a separate legal secretary. For Hong Kong corporate formation in Hong Kong, it is not necessary to appoint a secretary. Instead, the Secretary to the company can exercise a legal secretary’s powers and functions, subject to the board of directors’ supervision.
Forming a company in the legal system of Hong Kong takes time. It is essential to be patient during this process and devote all efforts to be successful. The method of the task to Hong Kong company formation is time-consuming. Moreover, it is essential to be fully prepared before starting the process. The documents submitted to the companies’ register should be scrutinised appropriately and should be closely monitored by the company secretary. It is also required to keep up with the latest changes in the Hong Kong corporate formation regulation.