How to Set Up a Limited Company in Hong Kong

The formation of a Limited Liability Company is the right choice for anyone wishing to set up a Hong Kong business. It is the most basic and most comfortable option for establishing an online business. It means that there are absolutely no formalities and documentation that are required. You can start and run your business without any worries whatsoever.
Limited Liability Company in Hong Kong has many advantages. One of them is that this type of company provides a lot of independence to the owners through set up Hong Kong limited company. With a typical company, the directors can appoint other people as partners, and they must follow the rules imposed by the board of directors. Forming a limited company frees you from all these hassles. It simplifies the functioning of the business, making it run much more smoothly.
Forming a company is easy. There are many online guides available to help people set up their own limited liability companies in Hong Kong. Some of these guides provide the necessary information in simple English. Some others require the users to make use of more difficult terminology. Such manuals and online directories can be handy if you need to understand company formation concepts in Hong Kong.
Hong Kong is a financial centre. All the multinational central banks and brokerage firms have their headquarters here. Therefore, when you set up a Hong Kong company, you will gain access to all the finance options available in this city. However, the company’s setup will be a little bit easier if it has been established before.
Before you establish a limited liability company in Hong Kong, you should have a list of all the individuals who will own the company and who will have the authority to bind the company. A board of directors is also necessary for this purpose. You can select one of the board of directors who will act as the company secretary.
The general duties of the company secretary are to maintain the books of the company. He also must ensure that the minutes of meetings are correctly recorded and prepare all the company’s documents. All the financial transactions of the limited company should be recorded in the books of the company. He must ensure that the shareholders of the company are aware of all the transactions of the company. He is responsible for keeping all the records of the company.
One of the requirements is to acquire the directors’ consent. It is a simple step, and you do not have to pay any fees for this. If you can afford to pay a fee for this, you can get the directors’ consent. If there are no company members, you can apply to the court to set up a limited liability company.
When you apply to the court, you must state that the company’s name must be set up under the Companies Act 2021. The Companies Registry must be duly certified. There is a fee payable for this service. Still, it is nominal, and the convenience and peace of mind of having your company name registered with the Companies Registry is worth the cost of the application fee.
Two other documents are required for you to set up a company in Hong Kong. One is the document of appointment of the company secretary, and the other is the document of the work of the company secretary and the principal director. The company secretary is the person in charge of receiving and sending notices and communications to the directors and the company’s shareholders. He is responsible for the maintenance of the company’s minutes.
The company secretary also handles the annual auditing of the limited company. The little company needs an accountant regularly. You can choose an accountant from the firm you are working with to set up a limited Hong Kong company. The accountant will be the person who oversees making the accounts and will make submissions to the shareholders on behalf of the company. The accountant will prepare the books and keep the journals for the funds.
The company secretary must have the power to make the necessary decisions on behalf of the limited company. The ability to make the required decisions includes the power to make the required amendments to the Articles of Association of the company and approve the company secretary’s register’s alterations. The company secretary’s ability to support the modifications to companies’ record must be exercised at least once every year. If the company secretary does not exercise power to approve the alterations, the limited company will be dissolved.