24It is fast, simple and inexpensive to create an offshore business organization in Hong Kong. It’s being a free economy makes it possible for traders to run their businesses at low costs while incurring low corporate taxes. Mark you, Hong Kong is served by an efficient workforce and less strict privacy regulations and policies. To appreciate the simplicity of the company registry form in establishing a business there, you should imagine setting up the company in no more than four days. Interestingly, with the assistance of professional consultants the entire procedure will be even shorter.
Designing on the type of company to be formed
It will be imprudent to establish incorporation without having it registered with the Companies Registry. In Hong Kong, this registry is managed and governed by the doctrines in the Companies Ordinance. Nonetheless, as an entrepreneur, you have to decide on the kind of company that you will want to form. There are two practical companies that you need to choose from. They include the public and private companies.
- Private companies are established by the small business owners. It can be owned by a minimum of 2 members and a maximum of 50. This number does not constitute the employees of the organization. It is also governed with restrictions when it comes to transferring shares from one person to another. Often, most organizations only allow for shares to be transferred within the members of the e Note that in this establishment, the public is not allowed to subscribe to debentures and shares.
- On the other hand, public companies operate on a large scale. They are at least owned by 7 people without a maximum number of members. In this case, the entire public is allowed to subscribe to shares and debentures within the entity. In addition, those shares are easily transferable from one party to another. It is only with public companies that you can find the state owning some percentage of its shares.
- Even so, there are certain things that these two companies share. For example, they by law possess a personality and are referred to as artificial persons. As a consequence of this personality, these organizations can both sue and be sued at the courts of law. They have limited liabilities in that the possessions of the owners of the entities cannot be taken to compensate for the debts of the organization. Instead, the company is liable to its debts. This implies that the assets of the companies can be used to offset its debts and settle all balances.
- The company is also allowed to own its property and to contract at its own will.
- A major advantage that is beneficial to these two companies is that they are sure of the continuity of the business. Considering that these entities are created by law, they automatically exist in perpetual succession. Hence, the business tends to be prosperous and more profitable. Remember that in case you pass on, someone else especially one that you preferred will carry on with the business.