Abstract: According to the Companies Registry, more than 100,000 Hong Kong companies are incorporated every year. There are many advantages to opening a company in Hong Kong, what should I prepare before opening a Hong Kong company? This article will focus on the process of setting up a company in Hong Kong and what to prepare for in advance.
Three major preparations before opening a company in Hong Kong
There are three major preparations for starting a company that must be dealt with in advance, otherwise you will find it difficult to open a company! The process of opening a limited company is different from that of an unlimited company, and there are more details to prepare beforehand, including the company structure, company name and registered address. Click here to know the difference between a limited company and an unlimited company. Here are 3 things you need to prepare in advance to set up a Hong Kong limited company:
Determine the company structure
Every private limited company must have at least one director who is a natural person and a company secretary, so it is necessary to determine which member of the company is the director and who should be the company secretary.
Director – Must be at least 18 years old, can be a Hong Kong resident or a passport overseas person, if the company has only one director, that director may not also be the company secretary of the company.
Company Secretary – The company secretary of a private company can be held by one of the directors, and the company secretary position is required to ensure the full discharge of the company’s administrative and legal duties and act as an advisor to corporate governance.
If the company secretary intends to appoint another trust company or secretarial company, the registered office or principal office of the company must be in Hong Kong and you need to pay attention to whether they have a trust and company service provider license.
Is it okay to change the company name as long as it is not repeated? Of course not, you must ensure that the company name complies with the registration requirements when choosing a company name, please refer to the Hong Kong Company Name Registration Guidelines for details.
A brief explanation of the company name registration guidelines
1. The company may register an English name and/or a Chinese name, but shall not use a combination of Chinese and English names, and Chinese can only use Chinese Traditional, Chinese Simplified cannot be used.
2. The end of the company name stipulates that the last word of the English name must be “Limited”, although Ltd has the same meaning as Limited, according to section 102 of the Companies Ordinance, the last word of the English name of a limited company must be “Limited”. The last four words of the Chinese name must be “Limited Company”.
3. Cannot be the same as other company names.
4. Do not resemble other company names too much.
5. Obtain approval before you can use words, chamber of commerce, kaifong, levy, savings, tourist board, tourist association, trust, trustee, trustee, trust, tourism association, tourism development authority, chamber of commerce, neighborhood, levy, savings.
6. Other words regulated by law, banks, exchanges, stock exchanges.
If the name cannot be used and needs to be re-applied, if it is excessively similar to other company names, a name change instruction will be issued, if the company or its officers who have not changed the name can be prosecuted, the maximum penalty is a fine of $100,000, and if the default continues, a daily default fine of $2,000 or forced name change will be given, so the company name change cannot be simple.
Check the company name
proposed company name has been registered before applying for a company.
It should be noted that a company name is different from a trademark, the company name does not mean that the company name can be used as a trademark, trademark registration is not the same as the responsible department for company registration, if you want to use the company name for the promotion or operation of its goods or services, you must apply to the Trade Marks Registry for registration of the trademark in order to obtain the protection granted under the Trade Marks Ordinance (Cap. 559). Therefore, in addition to going to the Companies Registry’s online search centre, it is also necessary to go to the Intellectual Property Department’s online search system.
According to the Hong Kong Companies Act, all companies incorporated in Hong Kong must have their registered office in Hong Kong and also need to use a Hong Kong business address as the registered address of the company.
The registered address of the company will become the public information of the Companies Registry, and many companies do not need an office or storefront, so they will choose to use the registered address or virtual office services provided by an accountant firm, business center or secretarial company, and some may even choose to register the company in their residence. However, if you use your home as your business address, if there is any dispute with the company, it may cause you unnecessary trouble. Therefore, many people in the market will choose to rent a business registered address. This method is quite affordable, and the cost is as low as 1,000 Hong Kong dollars a year, which can reduce unnecessary trouble.
If you have any questions about opening a Hong Kong company, welcome to contact the Langfeng Business Consulting Team, we provide one-stop business advisory services, from Hong Kong company registration, bank account opening and secretarial services to help you develop your business blueprint.