We provide formation services for different forms of business:

 

Private Limited Company

A limited company is a separate legal entity which distinct from its members. Shareholder of a limited company has limited liability for the company debts and obligations.

We provide service on formation of:

  1. Ready-made Company - Company was duly registered with Certificate of Incorporation. Client can own a ready-made company in 2-3 working days by simply selects a favorite name from our company list.
  2. Tailor-made Company - Client can decide the name they intend to use (English/ Chinese or Both). Usually it takes 7-8 working days.

Formation Requirements

  • A Hong Kong Company requires:
    • At least 1 director (who is a natural person)
    • At least 1 shareholder
    • At least 1 company secretary (Can be any individual reside in Hong Kong or a company registered in Hong Kong)
  • Directors and shareholders can be any individual or corporation of any nationality (at least 1 director who is a natural person)
  • A person can be a director and shareholder, but the sole director cannot be the company secretary of the company.
  • Details of directors, shareholders and secretary should be filed to Companies Registry and are on public record.
  • Corporate Name
    • Companies’ names can be expressed in both English and Chinese characters.
  • Registered Office
    • Registered Office must be situated in Hong Kong. A Post Office Box is not acceptable.
  • Share Capital
    • Shall be formed by at least 1 founder member.

Annual Requirements

    • Annual Return requirement;

    • Annual General Meeting;

    • Business Registration Certificate;

    • Audited Accounts

Taxation

Hong Kong profit tax is base on the“Territorial source concept”. All income derived from Hong Kong will be subject to Hong Kong taxation. All limited companies engaged in business in Hong Kong have to file their audited financial statement together with Profits Tax Return to Hong Kong Inland Revenue Department for tax assessment purpose.

 

 

 

Sole proprietorships

 

A sole proprietorship is a business that is run by a single individual who makes all the decisions, although the proprietor may engage employees. The sole proprietor is personally entitled to all of the profits and is responsible for any debts that the company incurs.

Advantages

  • Sole proprietorship is the simplest and most flexible business structure.
  • The sole proprietor has total control and full decision-making power over policies, profits and capital investment.
  • It is easy to close down the business.
  • Profits from the business will be taxed at the sole proprietor's marginal tax rate, which may be lower than the corporate (limited company) tax rate.
  • Business losses can be offset against the other income of the proprietor.

Disadvantages

  • Risks that are taken by the sole proprietor may result in personal bankruptcy.
  • The death or prolonged illness of the sole proprietor will lead to the end of the business.
  • Due to the limitations of a one-person business, the sole proprietor may not be able to raise additional capital from outside sources to expand the business.

 

 

 

Partnerships

A partnership is the relation which subsists between persons carrying on a business in common with a view of profit. The law relating to partnership is codified under the Partnership Ordinance, Cap. 38.

However the relation between members of any company or association which is

  1. registered as a company under any Ordinance relating to the registration of joint-stock companies; or
  2. formed or incorporated by or in pursuance of any other Ordinance, or any enactment or instrument is not a partnership within the meaning of the Partnership Ordinance.

Each partner in a partnership is personally liable for the acts of the other partners and for all of the debts of the company. On the other hand, all partners are entitled to share in the profits of the company equally unless they agree otherwise.

Advantages

  • It is easier to raise finance as a partnership than as a sole proprietor.
  • Partners pay tax on their share of the partnership profits at their respective marginal tax rates, and their share in the partnership losses can be offset against their other income.

Disadvantages

  • Partners do not have the benefit of limited liability.
  • The participation of all the partners is needed for most legal transactions, which can result in disputes among the partners.
  • The partnership will be dissolved when a partner dies or becomes bankrupt, unless the Partnership Agreement states otherwise.