You are probably in Honking and the desire to setup a company is so high, but you have no idea on how to go about it? You have the fear of unknown and lack the required resources to indulge in it?
Precisely that is what everyone goes through, being at the dark tunnel. However, the light is up and what this guide aims at is to ensure you know everything concerning the requirements and the expertise to set the ball rolling.
What Is Entity Of Company Incorporation?
To understand what this entails there is need to get the meaning of incorporation.
Incorporation is the state whereby there is a legal isolation of a person and a business. Hereby the business stands on its own with all the features an individual would have.
For instance, a company, which has the shareholders and owners, can be said to be incorporated if it the company has its own books of accounts, which are separate from the individual accounts. In case of it defaulting to pay its debt, the owners are not responsible provided they take the incorporation with dignity.
When Is The Favorable Time To Incorporate?
To guarantee the durability of a business enterprise, it should be taken through the due process of registration immediately after forming the business.
This creates confidence to the customers by depicting an official organization.
What Should You Possess Before Thinking Of Setting A Company In Hongkong?
The process is very simple and clear. Regardless of that there is need a meeting the set down regulation even before thinking of forming a limited liability company in Hong Kong.
The following set down policies should be adhered to:
- The organization should have at minimum one director of 18 years of age and above regardless of the place of habitant.
- It should possess a local approved address whereby P.O. Box is not accepted.
- Minimum 1 and at most 50 investors are acceptable. Further, the director can be also a shareholder.
- It must have a secretary whom can either be an individual or a firm. For the case of being an individual, he must stay in Hong Kong, and for a firm it should be in Hong Kong. A company director and shareholder cannot take the position of a secretary.
- To register an incorporated company is open to an individual or firm.
- There is no legal set amount of capital required but the standardized amount among the people is HKD 1,000.
What Are The Set Languages To Be Considered Before Incorporating?
Prior to having the process of officially setting up a business in Hong Kong, the Companies Registry (CR) need to look at it and give it a thump it for the process to go on.
English and Chinese are accepted to name the language.
Both should end with the word “Limited” with Chinese language having a substitute word for it.
In addition, the word should be ethical whereby it does not affect the other persons and firms.
How Can One Differentiate Sole Proprietorship And Limited Liability Company?
Sole proprietorship can be taken as a one-man show where only one person performs all the duties required by the business for instance shopkeeper.
On the other hand, a limited liability company has various persons handling different departments of specialization with an aim of maximizing on revenue. The setup of it gives a desired impression to customers making them have confidence on the business.
Should The Process Be Conducted At Hong Kong?
Precisely you do not need to avail yourself in Hong Kong to setup a business there, thanks to the digitization of many government functions. You can now login at E-registry, a 24-hour portal and undertake the process from there.
However, there is a limiting factor in opening a bank account, which requires physical appearance with documents. Neat Business has come up to curb this limitation.
Hong Kong recently has setup a friendly environment for investors to have their business up and running smoothly.
How Long Should One Wait Before Approval?
Just do not worry because technology has eased the a day when for online submitted application and 4 days for hard copies.
What Are The Functions Of A Company Secretary?
A company secretary should be based in Hong Kong regardless of being an individual or hired firm. Shareholders can be live overseas.
The main duties include maintaining a systematic bookkeeping for future reference and overseeing the legal requirements are followed.
A local firm is more preferred because it will give the business a local address for free.
Does Working With A Professional Firm A Requirement?
There are no legal binding rules for one to get a firm to do the incorporation roles. Acquiring one is advised due to the specialty of the firm in dealing with the such matters.
Does Learning Chinese Required?
No, you do not need to. This is because there is the option of either choosing Chinese or English.
Neat the Savior
For start-ups and SMEs the process of incorporation ends in gutters. Often the banks take long before accepting and eventually reject most of them.
The savior, Neat Bank, oversees the whole process to ensure the success of it.