The advantages of Hong Kong company incorporation are numerous, and they are worth exploring. Firstly, registering a company gives its legal status and power to any person interested in becoming its owner. Secondly, company registration requires one to prepare the Memorandum and Articles of Association and other related documents that provide information on the directors, shareholders, and the company. Thirdly, a company gets its official recognition from the Hong Kong government when it has been registered.
Hong Kong provides all the necessary guidance on company formation services that any individual or business investor may need. The authorities in Hong Kong have introduced several measures to help Hongkong company incorporation. The primary purpose of introducing these measures is to facilitate the economy’s growth and promote business development. Hence, numerous companies offer company incorporation services in Hong Kong for the convenience of both business investors and the government.
Among all the company incorporation services offered by the service providers, the best benefits can be obtained when a company is registered with a local office. The benefits of having an established office in Hong Kong are many. First, a company will have an official identity and will appear as an authorized entity in the eyes of the law. By having an established office, a company will get bank loans and other financial assistance from banks in Hong Kong, ensuring that it can expand into other countries.
One of the benefits of having a registered office is that a company will benefit from obtaining a high level of taxation. Companies registered with an office are treated as a legal entity in the eyes of the tax authorities in Hong Kong. It means that the company can benefit from paying no corporate income tax or only paying a specified tax per year. Moreover, in some cases, a company will also be eligible for state tax breaks. A company will thus be able to lower its taxable income and increase its profit margin.
A company can also benefit from having a company secretary or director. A company secretary serves as the company’s mouthpiece, communicating with shareholders, the suppliers of its products, and the public. If a company has a limited number of shareholders, a company secretary will act as the shareholders’ representative. He or she will oversee executing the company’s written agreements and executing the company seal. The company secretary is also responsible for answering any queries that shareholders may have and ensuring that the company’s books are constantly updated. If a company wishes to incorporate without a company secretary, it can elect to hire one from a list of certified company secretaries provided by the secretary of state.
A company formation in Hong Kong can also make use of the ‘bin’ or ‘shelf’ registration method. Companies can register using either the names of individuals or companies. Companies can appoint an accountant or an office manager and pay a registration fee to get their initials on the Registry of Companies. They can also choose to register using a ‘names only service. This service does not require a legal background and can be completed within a short period.
While the registration of a company is the primary purpose of Hong Kong company incorporation services, another reason why it is essential to engage the services of these companies is the payment involved. The registration fees in Hong Kong are comparatively lower than most international counterparts. A company secretary who uses Hong Kong company formation services will have to pay a nominal fee for each new business he gets into, irrespective of the number of companies he opens. This fee also covers the costs incurred for the accountant’s services and the company seal and letterhead printing.
The benefits of using offshore company incorporation services in Hong Kong are numerous. A company secretary who makes use of these services gets several benefits. First, he gets a lot of time off from his job as a company secretary to concentrate on these services full time. Secondly, he does not have to spend a lot on his travel expenses since the company secretary will not need a car and will not require a passport to start working outside of the country.