Share Capital

Understanding the fundamentals of Share Capital is crucial for anyone involved with a Hong Kong company. This guide breaks down the key aspects, from its definition to the practical requirements during incorporation.

What is Share Capital in Hong Kong ?

Share Capital is the ownership of the company as held by the shareholders. This would be in the form of the stocks, or shares, for the company. A limited company must have at least one founder member with at least one share of the company. This would establish ownership of the company by a shareholder.

Minimum Requirements for Share Capital in Hong Kong

The Hong Kong company regulation does not require that 1 share must be worth of 1 HKD. The share capital for a company can be in any currency, but must have at least 1 share for a company. It is the total share capital available and registered for the company. Therefore the share capital can be in HKD, USD, EURO, GBP, RMB, or other currencies chosen by the shareholders.

The founding members are not required to submit the share capital amount to the government nor into the company bank account. They may choose to deposit this amount into the company bank account later on, but are not required by law when incorporating the company in Hong Kong.

Startupr: Your Partner for Share Capital and Company Structure

In case you have questions regarding the share capital or company structure, contact us at Startupr for more information. We also provide services for issuing new shares and the transfer of shares for companies. Contact us for more information regarding the share capital or our services today!

FAQ

Below you’ll find answers to common questions about Share Capital in Hong Kong companies, helping you understand this fundamental aspect of company structure and ownership.

What exactly is Share Capital?

Share Capital represents the ownership stake in a Hong Kong company, held by its shareholders in the form of stocks or shares.

How many shareholders and shares are required initially?

A Hong Kong limited company must have at least one founder member holding at least one share to establish ownership.

Does a share have to be worth a specific amount (e.g., HKD 1)?

No, Hong Kong company regulations do not mandate a specific value per share.

Can Share Capital be in currencies other than HKD?

Yes, the Share Capital can be denominated in various currencies like USD, EUR, GBP, RMB, or others chosen by the shareholders.

Do I need to deposit the Share Capital into the company bank account right away?

No, founding members are not legally required to deposit the Share Capital into the company bank account upon incorporation. This can be done later at their discretion.

Can Startupr help with Share Capital matters?

Yes, Startupr can provide information and services related to Share Capital, including issuing new shares and transferring existing ones. Contact us for assistance.

Is Share Capital the same as the money in the company’s bank account?

Not necessarily. Share Capital is the registered ownership, while the money in the bank account is the company’s working capital, which may or may not equal the initial Share Capital.

Where is the Share Capital amount recorded?

The total authorized Share Capital is registered with the Hong Kong Companies Registry.

Do I need to inform the government when I deposit the Share Capital into the bank?

Generally, there’s no specific requirement to inform the government when you deposit the initially stated Share Capital into the company’s bank account. However, changes to the registered Share Capital need to be reported.