Hong Kong is one of the world’s most important business markets. Many multinational corporations have their headquarters in Hong Kong and are doing well. The creation of a Hong Kong company is simple and inexpensive. Without the owner or directors resident in Hong Kong, a third party can easily create a corporation in Hong Kong. Any adult in Hong Kong over 18 can start a business. Creating an online Hong Kong business takes 5-7 working days. Go through this link https://offshorecompanyregister.com/hong-kong-offshore-company-formation/ to know the advantages of a company’s incoorporaton.
What Business Structures Can Get Registered in Hong Kong?
Although Hong Kong permits the founding of a wide range of enterprises, you must first decide whether to conduct your operations in Hong Kong or elsewhere. This selection will benefit you in terms of taxes and also other areas. We’ve explained each company structure below to help you decide which one is best for you.
Ownership is limited to one person
A sole proprietorship is a business with only one owner who gets financially responsible for earnings and losses.
Collaboration in Business
To divide profits, a partnership with a minimum of two and a maximum of twenty participants get created. Each member of a general union is personally accountable for the company’s earnings and debts. Another alternative is to form a limited partnership, in which general partners are susceptible to their investment while limited partners are only liable for their initial investment.
Individually Limited Liability Companies
A private limited business with no more than 50 stockholders by shares is considered a separate legal entity from its owners and shareholders.
Limited Liability Company
Large firms should choose this option to raise capital through a stock market listing. Click this link https://offshorecompanyregister.com/hong-kong-offshore-company-formation/ to know the business structure. This business can subscribe to its shares if there are more than 50 shareholders, and it gets frequently listed on the SEHK.
Limited Liability Corporation
This corporate form can be used by charity and non-profit organisations. Every business member must pay a certain amount if the company goes bankrupt. The sum will get specified in the company’s Articles of Association (AoA).
Office of Division
The admission office is nothing more than a foreign firm that gets granted a licence to operate in Hong Kong. In the City, it is not always considered a separate legal body.
A representative office, like a branch office, is not a separate legal entity, and the foreign parent business bears all obligations of the Hong Kong representative office. Profitable commercial operations are not permissible for a representative office. A representative office can only perform restricted functions such as liaison, marketing, and research.
Foreign business growth that gets prohibited from engaging in profitable commercial activities. It is appropriate for non-commercial functions such as human resources and marketing.
Companies limited by guarantee without share capital
A company limited by guarantee lacks a share capital, and its members’ liability gets restricted to the number of assets contributed to the firm. Such legal arrangements are suitable for non-profit operations such as education and research. These arrangements are not suited for profit-seeking businesses.