Respectable Asian Business: Do It in Hong Kong
November 18, 2016
Don’t you ever think about trade Chinese goods? Don’t you ever take thought how to do it “painlessly” and most effectively? Do you know about business-friendly and tax-effective economiczones in Asia, competitive economy, simple business registration and possibility to open representative office in Mainland China?
What about carry on business in Hong Kong, one of the largest business hub in Asia? Thereat we would like to offer a brief overview of business vehicles and to share some important knowledges.
Those who are doing offshore business abroad usually advice to incorporate new local company or open a branch or representative office in Hong Kong for your domestic company. Besides that, it is possible to register partnerships (two types, general and limited are available there) or the simplest form for business – sole proprietorship.
Major percent of legal advisors, consultants and accountants, companies, who work in the sphere of business registration, will offer their clients Private Company limited by shares or Limited Partnership as an offshore vehicle. We also adhere the classical view of such things, but still recommend considering all the possibilities before making your choice.
You can often find different names of business entities in Hong Kong on various websites. Hence, the confusion can arise regarding the requirements for the establishment of the company and its liability. In this case, the reason probably lies in the legislation. Thus, there were two laws, which regulated companies’ activity in Hong Kong.
The first, the old Companies Ordinance came into force in 1865 under British rule. In the past, this ordinance has been amended many times, however it was not subject to significant changes. The rewriting of companies’ legislation began in 2006, when government started to update the law, strengthen corporate governance, contribute to business and ensure better regulations. The new law has been made up in January 2011 and was passed by the Legislative Council in June 2012. It came into force in March 2014 and abolished of par value for shares, memorandum of association. At the same time, this allowed companies to dispense with annual general meetings and made the keeping and using of a common seal optional.
What’s the Difference?
The previous law stipulated eight types of companies, but the new law abolished several types of them and re-grouped others; now there are five types of companies that may be incorporated: private companies limited by shares, public companies limited by shares, companies limited by guarantee, private and public unlimited companies.
Sometimes private company limited by shares is called “limited company” or “private limited”.
However, in general, principle of formation entities in Hong Kong, their structure and grouping is common with the UK because of the type of legal system (Common Law).
Are you looking for detailed information about business facilities in Hong Kong? Try to visit Offshore Express Company’s website and find series of brochures about this jurisdiction. These brochures are published regularly and available for download free of charge.