Today Hong Kong offers a wide array of business opportunities for corporate entities. Being one of the fastest-growing global financial centres, Hong Kong is an ideal place to establish a new business that will excel in the highly competitive global marketplace. It is also an excellent platform for business expansion and management due to the existing multi-cultural and multi-economic profile of the local population. As Hong Kong enjoys economic and political stability, business options are not limited, and a range of corporate options, including retailing, investment, property, franchising, pharmaceuticals, etc. are readily available to suit all types of business requirements. And through proper planning and structuring, an engaging and prosperous Hong Kong company can enjoy all the benefits of company incorporation in Hong Kong.
Several factors need to be taken into consideration when setting up a new business entity in Hongkong company incorporation. The most important of these is that the marketer must be adept with the English language to communicate with the various stakeholders of the business. Moreover, the company incorporation process in Hong Kong also necessitates the involvement of a legal practitioner who can guide the promoter through the various procedures required. Apart from this, the company incorporation in Hong Kong also requires that the promoter signs the pre-incorporation agreement along with the other legal parties involved in the process.
One of the main benefits of company incorporation in Hong Kong is that it simplifies the paperwork process and provides a level playing field to the prospective marketer. For instance, one of the major concerns of any entrepreneur is to ensure compliance with the laws of the country. To achieve this, a firm can benefit by signing up for an International Business Corporation (IBC) registration. IBCs are offshore protected entities and are not connected to any national registry. Another advantage of IBC registration is that it allows companies to gain a lot of privacy. Unlike its counterparts in the mainland, Hong Kong companies are not required to reveal their shareholders or their entire board of directors.
A firm also benefits by ensuring that all the information regarding its operations remains confidential. It includes all financial details, the identity of its founders, its members, and the activities carried out by them on a day-to-day basis
Upon signing up for IBC registration, a company is also obligated to submit annual financial reports, which would include the profit made by the company and its expenses. The company secretary must also be informed about the amount of money paid to sub-contractors. All these obligations must be met before a company can complete its incorporation process.
Upon being incorporated, a company must be conducted an IBC inspection. Under the law, this inspection must be carried out within a short period after the company has been set up. During this inspection, the company secretary must be present along with three other directors of the company. Formalities for carrying out the inspection include requesting the financial reports from the financial institution providing the loans for the capital required for the incorporation. After being received, the company must submit its completed IBC application forms and other documents to the concerned financial institution.
The Hong Kong Company Law stipulates that before a company can become incorporated in Hong Kong, it must have the following essential documents: The Memorandum and Articles of Association of the company, the registers of deeds of the company, the statutory instruments relating to the company, its audited accounts, and the directors’ register. The documentation mentioned here is just some of the many that must be completed and delivered to the authorized officer who oversees IBC. After receiving the necessary documents, the authorized officer must go through each one carefully to ensure compliance with the rules and regulations. Only after all the documentation has been returned to him must the officer initiate the IBC registration process. After submitting all the necessary documents, the new company can now be operational.
To make sure that a company is conducting business legally, the company secretary performs a continuous IBC review regularly. Ultimately, the success of the company incorporation will be based on the work of the company secretary. If you are thinking of starting a business of your own, consider incorporating it in Hong Kong.