Hong Kong Company Formation
Company formation in Hong Kong can be a worthwhile option for ex-pats looking to establish an overseas company. Hong Kong is among the busiest international financial centres globally, with over three million people getting in and out every day. It makes it a dynamic place to set up a company. For more than two years, companies that have been established here are eligible for some of the tax benefits available to companies in Hong Kong. These include an exemption on income tax to business owners who earn above a specified amount of money every year. Company formation in Hong Kong will also attract a wide range of venture capital from other parts of the world.
The main advantage of Hong Kong company formation is the ability to get tax benefits. Most countries make it mandatory for all companies to register with them before doing business. While there are no legal restrictions on this, tax rates can be less in some countries thanin others. In Hong Kong, the government has been very restrictive when it comes to company formation. They only permit limited company registration to people whose income is under a specified limit.
It has led to several small businesses registering themselves as Limited Liability Corporations (LLCs). A typical LLC is a corporation that has limited liability. It can have as many shareholders as it wants, but each shareholder is liable for his taxation. It makes it very simple for international businesses to incorporate themselves in Hong Kong without any difficulties whatsoever. There is no need for global investment if a company is registered in Hong Kong.
Company Formation in Hong Kong requires that the company be formed in the name of the person acting as its registered agent. It makes it very simple for a domestic businessperson who has all the details of his business right in his name. The simple fact that only a third party is involved in all the dealings between the company and the shareholders means that it is easier for an international business to establish himself in Hong Kong, even if his capital is low. Some Hong Kong companies deal exclusively with the Chinese market and do not needa third party’s services to open an office in this city.
Hong Kong company formation can be done through a simple process known as Single-entry or Double-entry book-keeping. A simple account of the business is entered on the books of the company. The business’ assets and liabilities are also shown in the books. A company’s liability is directed against its principles, and its assets are recorded against its various partners. One director must be present at all the meetings of the board of directors. He must have a fixed pay-able salary to him, and he is allowed to vote for the company’s annual general meeting.
Beneficial holders or directors of the company have the right to receive all the profits, payments, and benefits of the company. The company’s creditors or owners carry out all these benefits. However, some services are not allowed for all the shareholders. These include the profits, payment, and other miscellaneous payments not included in a director’s payables. To enjoy such benefits, the owner or the creditor must apply to the Court of Appeal.
Hong Kong company formation is comparatively fast and straightforward. Companies can have their accounts ready within days. It takes only a fax, email, or cash payment to the bank for opening an account. The easiest way to apply for company formation is to go online and choose the options available.
Hong Kong company formation is essential as it enables the entrepreneurs of a particular company to manage its business affairs easily. It also provides them with better tax benefits. Moreover, it also offers easy access to the international market. The entrepreneurs will be able to access foreign markets without any difficulty.
Hong Kong company formation