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Procedures for Registering a Company in Hong Kong

Procedures for Registering a Company in Hong Kong
 Company name search -》Complete power of attorney and agreements -》Pay advance which is 50% of total payment -》Sign registration documents -》Submit the registration documents to the government -》Receive all corporate documents issued by the government. It will take one to seven days to complete all the registering procedures, and the company can be listed in Hong Kong, Singapore and USA. Hong Kong economic system can provide a most effective financing platform for Chinese and overseas entrepreneurs, thus contributing todevelopment of economic system and reducing payment and settlement risk due to some international financial activities occurred in different time zone.
 RICHUNG has more than ten years of experience in the registering and managing companies in Hong Kong and other countries, and we are professional in company listing, accounting, tax returns, tax planning, trademark registering and opening a bank account.
 Most listed companies in Hong Kong do not have audit committee. The companies ‘ management has been paid close attention by regulators and business community. Therefore, it can be expected that relevant ordinances will be tighten. This provision is based on a fictive and outdated concept which is not identified in many territories: A Hong Kong company must have at least one person to form a company. Thus, a company with one owner should have a nominal person to supervise at least one share for the beneficiaries. In general, the nominal person will issue a declaration of trustto beneficiaries with an assignment and stock order list signed by nominal person, thus, interests of the beneficiaries can be safeguarded.
 It is different from other place, Hong Kong company do not have minimum capital requirement. Some company’s registered capital is only 10,000 HKD, but some other company especially those listed company could have huge registered capital and issued capital. If the funds are provided by shareholders,funds used to do business can be offset in the way of loans by the shareholders.
 There are several advantages that the funds provided by shareholders is treated as loans but not as subscription shares, and the first one is that companies don’t need to pay 0.3% capital tax, the secondis that companies don’t need to approve by the court when reducing capitals, the third is that shareholders’ loans will have the same priority to get payments from the company comparing with the loans from unsecured creditor, the forth is that companies can mortgage their property to the shareholders if they loan shareholders money, the fifth is that interests can get tax cuts or deductions, the sixth is that companies can save a lot of stamp duties when transferring the companies’ share, because companies’ net assets values will decrease when their funds come from loans but not capitals.
In case that companies operate their businesses by loans of shareholders, there will be transformation of shareholders’ loans when companies are trying to transfer shares, and in order to save stamp duties, the best way is to distribute shares and loans of shareholders to different companies.
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