Advantage of setting up a Hong Kong Company

Why choose a Hong Kong company

Investors wish to start business in Hong Kong can choose to incorporate a limited company by share, limited company by guarantee, sole proprietorships / partnership, representatives offices or overseas branch.

Limited Company By Share

Hong Kong limited company is also known as limited liability company, LLC.
A private company limited by shares is the most common types of companies in Hong Kong. It is commonly used for setting up a trading business in Hong Kong or forming a holding company to invest in China. The followings are the basic requirements:

  • Appoint at least 1 individual directors (aged 18 or above).
  • Appoint at least 1 Hong Kong company secretary.
  • Minimum 1 shareholder.
  • At least one founder member taking one share of the company.
  • No restriction on the amount of share capital.
  • Company must have a registered business address in Hong Kong.
Limited Company By Guarantee

Hong Kong company limited by guarantee is primary set up for non-profit organizations that require corporate status. It is common in not-for-profit company to register for the purpose of of advancement of education, religion, relief of poverty, trust and foundation, etc. The followings are the basic requirements:

  • Appoint at least 2 directors (aged 18 or above).
  • Appoint at least 1 local company secretary (HK resident / HK corporation).
  • Minimum 2 members.
  • At least one founder member taking one share of the company.
  • Company must have a registered business address in Hong Kong.
Sole Proprietorship or Partnership

Sole proprietorship or partnership company, also known as unlimited company is the fastest and simple way to start your business in Hong Kong. The followings are the basic requirements:

Representatives Offices

A Representatives offices cannot engage in profit-making activities and can only fulfill limited functions. It is commonly use if a foreign company wishes to explore the Hong Kong market before making larger investment. The followings are the basic requirements:

  • Appoint at least 2 directors (aged 18 or above).
  • Appoint at least 1 local company secretary (HK resident / HK corporation).
  • Minimum 2 members.
  • At least one founder member taking one share of the company.
  • Company must have a registered business address in Hong Kong.
Branch Office of Foreign Company

A Branch offices is not a separate legal entity from the parent and can leverage funds off the credit rating of its owner. If a company incorporated outside Hong Kong establishes a place of business in Hong Kong, it must register with the Companies Registry as a 'Registered Non-Hong Kong Company' within one month of establishment. The followings are the basic requirements:

  • Appoint at least 2 directors (aged 18 or above).
  • Appoint at least 1 local company secretary (HK resident / HK corporation).
  • Minimum 2 members.
  • At least one founder member taking one share of the company.
  • Company must have a registered business address in Hong Kong.
Which type of Hong Kong company should I choose?

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