Formation, maintenance and deregistration of a companies are the three core areas of our Companies Secretarial Department. In this Section, let us begin with some useful tips regarding the formation of a company in Hong Kong.

There are two main types of companies that an investors may consider:

1. Offshore company

2. Hong Kong company

Offshore Company

Clients sometimes ask which is the best offshore area to incorporate a company.  There is no standard reply as the answer really depends upon the intended use of the corporation as well as the client’s own personal or business circumstances. There are, however, a number of factors which must be considered beforehand. The first is the tax regime of the Offshore Financial Centres (OFC) and just as important is the political and economic stability.  The OFC chosen should not be subject to violent political swings or the likelihood of military coup or invasion.  Other factors include the quality of communications, language, legal system, confidentiality, exchange controls and banking facilities.  Attention should also be drawn to restrictions which the country might impose upon certain types of business.

Of particular importance is to remind clients that the tax and other benefits which can be obtained will depend not only upon the tax and other legislation of the country of residence, and possibly and domicile, of the beneficial owner but also any relevant anti-avoidance legislation of any country in which the client intends to run business.  We always encourage clients to take appropriate independent professional advice before setting up an offshore structure.

For detail information, please download our Brochure for Offshore Companies   

 

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Hong Kong Company

Under the laws of Hong Kong, there are three types of business organisations:-

• Sole proprietor

• Partnership

• Limited company

Sole Proprietor

• It has total autonomy over running of business and very few legal requirements. The sole proprietor takes all the profits.

• It has unlimited liabilities and the sole proprietor bears all the responsibilities and risks.

 Partnership

• They run by a group of two or more under the  Partnership Ordinance. There are few legal requirement and generally easier to administer and cheaper to run than a company.

• They have unlimited liabilities. In general, the partners are jointly and severally liable for the debts of the partnership.

• Other partnership and sole proprietor can use the same name for different company.

• Automatically dissolved on decease or bankrupt of a partner or sole proprietor. It must use the name of partners or sole proprietor for holding of property.