INTERSHORES I How to Choose Your Hong Kong Incorporation Package

Hong Kong technically is not an offshore jurisdiction but somehow an offshore-like jurisdiction with the benefits that outperform the others attracting large number of businessmen to come here for business.  Hong Kong private company limited by shares is the most feasible business entity for entrepreneur to setup as the owners/directors do not have to be present in Hong Kong for incorporation.   Before you decide to set up a Hong Kong company with a specific services provider.  You may have to consider the following :


Buy a shelf company or tailor made a new company?

What is Shelf Company?

Shelf company (also named as off the shelf or ready-made company or stock company) is simply a Hong Kong Private Company Limited by Shares (i.e Limited Company) that have been already registered in Companies Registry for the purpose of reselling. These pre-existing Limited Companies are 100% never used nor do business, clean in record.


Buying and selling of Hong Kong shelf company is very common and is legal since Hong Kong has no restriction on ownership transfer.  The legal status is completely the same as a newly incorporated company.


For buying a shelf, the company will be activated within a day upon submission of all the required signed documents.  For special incorporation, it will usually take 5 working days unless electronic submission.


If you will need to sign an agreement upfront, you should choose a shelf company.  It would otherwise be incorporating your company under your choice of name.


Do the age of companies matter?

There are reasons for aged companies:


1.    Some financial institutes only accept companies with history for account opening.

2.    Customers may prefer not to deal with newee.

3.    The name of the shelf company is exactly the preferred name.


How to tell the quality of company secretary?  What is company secretary? 

It is an officer, like Director, statutorily required by the Companies Ordinance Cap 622.  It must be a local resident or a body corporate incorporaqted in Hong Kong.  Its fundamental responsbilities are:


1.    Ensuring compliance with the Hong Kong legislation.

2.    Arranging general / annual meetings.

3.    Preparing minutes of meetings.

4.    Maintaining statutory records in Companies Registry and at its Registered Office.

5.    Filing statutory returns to Companies Registry.

6.    Keeping board members informed of their legal responsibilities.


Can I appoint other parties for company secretary?

If you have business partners, friends, family members who has one residential or corresponding address in Hong Kong, and they can spare the time and afford to fulfill the legal duties, you can appoint them as company secretary.


However, you have to ensure that person is able to assist you the basic work for a limited company:


1.    Change of company members (e.g. directors).

2.    Amendment of directors’ particular.

3.    Change of company name.

4.    Change of company address.

5.    Preparation for statutory meetings notice and their minutes.

6.    Preparation for and submission of annual return.

7.    Preparing and storing statutory books and minutes.

8.    Preparing and filing of annual return.

9.    Preparation of special / ordinary resolution.

10.  Allotment of shares (Bought and sold of shares).

11.  Application of dormant Company.

12.  Appointment of company secretary.

13.  Appointment of directors.

14.  Change of business registered address.

15.  Change of shareholder / Transfer of share.

16.  Deregistration of limited Company.


Setting up a Hong Kong company is easy and simple, however, maintenance requires experienced personnel who is qualified and be able to notify you well in advance for any specific timeline you may face.  


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Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES does not accept any responsibility, legal or otherwise, for any error omission and accepts no responsibility for any financial or other loss or damage that may result from its use.  In particular, readers are advised to take appropriate professional advice before committing themselves to any involvement in jurisdictions, vehicles or practice.









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