For most entrepreneurs, the primary objective is growing their enterprises into global brands. Well, who does not envy successful multinationals, such as Barclays and Apple Inc.? To follow in their steps and become equally successful, one of the most important things is registering your company in an appropriate jurisdiction.
One of the most revered offshore jurisdictions today is Hong Kong. It operates as a Special Administrative Region of China, and the World Bank ranks it as one of the world's freest economies. Hong Kong is also strategically located in the heart of Asia, meaning that you can comfortably access other neighboring markets.
To take advantage of these unique benefits, you need to make the first and most important step –incorporating a company in Hong Kong. So, here is the process to follow to successfully incorporate a business in Hong Kong.
Choose the Company Type and Name
The first step when registering a company in Hong Kong is deciding the preferred formation and name. You can select the company based on the following criteria:
Company limited by share: In this type of business formation, the liability of members is limited to the number of shares they have paid for. Individuals with shares are considered owners of the company.
Company limited by guarantee: If you opt for a company limited by guarantee, it implies that there are no shares. Instead, the company will have members who are legally bound by a guarantee in the company's articles of association.
Once you have selected the company format, the next step is identifying the preferred name and search with the Registrar of Companies to ensure that it is unique. If you have a name that has already been taken or that might infringe on the intellectual property rights of another company, it will be rejected.
Prepare the Required Documents and submit them to the Company Registry
Armed with the approved name of your company, it is time to put together all the documents required for company incorporation in Hong Kong. Here are some of the main documents:
The name of your company.
Articles of association.
Copies of passports of non-resident shareholders and directors.
Memorandum of understanding.
Full details of the resident secretary.
In addition to the above documents, you also have to prepare a complete description of business activities and submit to the Companies Registry.
Is there a Simpler Way of Registering a Company in Hong Kong?
One of the main reasons why a lot of businesses are attracted to Hong Kong is the simplified process of registration. However, the process of preparing dozens of documents and having to fly there can be challenging and expensive too. The good news is that there is a better and simpler method of registering a company through the use of an agency.
The Companies Ordinance allows investors to use agencies for assistance with company registration. This means that instead of booking a flight to Hong Kong, an expert will be at the other end (in Hong Kong) to assist you to prepare the required documents, and complete the registration faster.
The agency you select can also serve as your company secretary and address. More importantly, the agency can guide you diligently, especially during the early period of company establishment.
When the time to expand your company abroad finally comes, the most important thing is selecting a good jurisdiction and Hong Kong is one place that will never disappoint. So, make sure to get it right starting with the company registration by working with professionals.