Registering other types of companies in Hong Kong
Keep on reading the article in order to get profound knowledge about setting up the business in Hong Kong
When you are considering to setting an office for your company in Asia, why don’t you choose Hong Kong as the baseline of your business? Known to be one of the top financial hubs in the world for investors, Hong Kong is becoming a dynamic city with strong growth prospects. Beyond that, Hong Kong is also famous for being the best gateway to opportunities in mainland China and the rest of Asia.
In fact, over time, Hong Kong has become a hub for many big names, like Google, Apple, Amazon, Facebook, PepsiCo, and Starbucks. The reason behind this trend are the following benefits offered by the freest economy of the world.
- Reduced tax burden
- Better shelter for the businesses
- Limited business risk
- Save money and time
- Fair and Transparent Legal System
- Strategic location
Do you want to make a mark as an entrepreneur in Hong Kong? Then keep on reading the article in order to get profound knowledge about setting up the business in Hong Kong. But before launching a business, you need to make sure that you are embarking into the race with the appropriate business structure.
How to register common types of business entities in Hong Kong?
Electing the right business structure is as important as choosing the business structure. If your business structure is not matching up the objectives and ideas of your organization, then there is a high risk you will fail.
Before shared are common types of business entities in Hong Kong that you need to know:
- Sole proprietorship company
- Limited Partnership
- Limited by Guarantee (Non-Profit Organization)
- Branch Office for Hong Kong Private Limited Company
Let’s start the article by giving an in-depth description of each and every business entity in Hong Kong.
#1 Sole Proprietorship Company
The first and foremost type of business entity is the sole proprietorship in Hong Kong. As the name suggests, it is a business structure that is operated by an individual. Indeed this business structure doesn’t provide any security level of personal assets and limited liabilities to its owner, unlike the private limited company.
However, sometimes, it becomes even more cumbersome for the sole proprietorships to expand their business, and raise capital, as several investors restrict themselves to have a relationship with non-incorporated entities.
As a result, the sole proprietorship in Hong Kong is not highly recommended by the business people as a form of business entity to conduct their business.
You can find more about this type of company at https://startupregistry.hk/services/sole-proprietorship-company/.
#2 Limited Partnership
The second type of business entity is the Hong Kong limited partnership. This type of business is beneficial for two or more business partners who are willing to deal with the same commercial activities and agree upon dividing the degree of responsibility between them: either limited or unlimited.
Normally, the general partners of this entity are pretty experienced business persons who are completely involved in the decision-making process and have unlimited liability for business debts. On the contrary, the limited partner can be the business or an individual who provides you with the financial resources to a limited partnership. A limited partner shall not during the continuance of the partnership, either directly or indirectly, draw out or receive back any part of this contribution, and if he does so draw out or receive back any such part, shall be liable for the debts and obligations of the firm up to the amount so drawn out or received back. A limited partner shall not take part in the management of the partnership business, and shall not have power to bind the firm. Provided that a limited partner may by himself or his agent at any time inspect the books of the firm and examine into the state and prospects of the partnership business, and may advise with the partners thereon.
Are You Ready to form Your Limited Partnership Company in Hong Kong? Choose Startupr! And just incorporate your business with Startupr! With the help of our Back Office system, get round-the-clock access and fast company services through Startupr and the HK government Companies Registry (CR) office.
You can find more about this type of company at https://startupregistry.hk/services/limited-partnership/.
#3 Limited by Guarantee (Non-Profit Organization)
Another business structure for Hong Kong business owners is limited by guarantee which they can choose as per their business objectives and ideas.
Therefore, this entity is typically incorporated for clubs and non-profit organizations that need a legal personality. Moreover, this entity comprises members instead of the shareholders, who undertake or guarantee to contribute a predetermined sum to the companies in order to cover its liabilities during the winding up of the company. In order to set up a non-profit organization in Hong Kong, business owners don’t require a share capital.
However, as per the regulations, to register a non-profit organization in Hong Kong, companies need to file the annual returns accompanies with the certified true copies of the relevant financial statements, directors’ reports and auditor’s report in respect of every financial year.
You can find more about Limited Company by Guarantee (Non-Profit Organization) at https://startupregistry.hk/services/limited-by-guarantee/.
#4 Branch Office for Hong Kong Private Limited Company
Well, once you are done with the establishment of Hong Kong Private Limited Company, a branch office can proceed and be submitted for an application .
According to the Hong Kong Companies Ordinance d, “Branch” is defined as “an extension of a Hong Kong registered company.” Therefore, the branch office is always under a parent company; all liabilities of the branch office will always be linked with the parent company.
For a branch office, a NAR1 form is not required. (NAR1 – “annual return” is an annual report to the government that keeps track of all changes to the company particular over a one-year period).
Moreover, in order to declare an audit purpose and profit tax return, the parent company will need to complete consolidation for all branch offices). What’s more, the business registration certificate (BRC) for the branch offices must be renewed annually (renewal date is the same as the parent company).
In short, a the branch office offers many benefits in accounting and operations to owners when expanding a company.
You can find more about opening a Branch Office for Hong Kong Private Limited Company at https://startupregistry.hk/services/branch-office-for-hong-kong-private-limited-company/.
Well, by now that you have a profound idea about various types of business entities in Hong Kong and how Startupr can help you in incorporating your entity in the freest economy of the world. Moreover, our back office system and unique same day service are the services that set us apart from the competition.
So, if you want to keep a track record of your day-to-day business operations and intends to comply with all the regulations of the HK government, then look no other than Startupr.
In short, our separate online Back office system helps you keep track of your company’s details and required annual filings, all in one place. We don’t stop after setting up your business in Hong Kong. In fact, we will also help you in dealing with all the legal system problems.
Our creative, updated, flexible approach and transparent pricing, honesty & reliability, and unwavering always focus on client satisfaction help to provide you the best services possible.