Top 3 things you need to prepare in advance to open a company in Hong Kong
According to the statistics of the Companies Registry, more than 100,000 Hong Kong companies are formed every year. Hong Kong company has many advantages, what should be prepared before opening a Hong Kong company? In this article, we will focus on the process of opening a Hong Kong company and what to prepare in advance.
Three major preparations before opening a company in Hong Kong
There are three major preparations that must be taken care of beforehand, otherwise you will find it very difficult to start a company! The process of opening a limited company is different from that of an unlimited company in that there are more details to be prepared beforehand, including the company structure, company name and registered address. Click here to learn morelimited company與UnlimitedThe difference between the two.
Below are the top 3 things you need to prepare in advance to set up a Hong Kong limited company:
Determine the corporate 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 first determine which members of the company should be directors and who should be the company secretary.
board member - Must be at least 18 years of age and can be a Hong Kong resident or an overseas passport holder. If the company has only one director, the director must not also be the company secretary of the company.
Company Secretary - The company secretary of a private company may be one of the directors. The company secretary's duties need to ensure that the administrative and legal responsibilities of the company are fully discharged and to act as an adviser on corporate governance.
If the company secretary intends to appoint another trust company or secretarial firm, the registered office or principal office of the setting up company must be in Hong Kong and it is necessary to note whether they have a "Trust and Company Services Provider Licence".
Company Name
Can I change my company name as long as it is not repetitive? Of course not, you have to make sure that your company name complies with the registration requirements.Guidelines on Registration of Hong Kong Company Names。
Simple Guidelines for Registration of Company Names
1. A company may register an English name and/or a Chinese name, but may not use a name that is a combination of English and Chinese, and the Chinese name may only be in traditional Chinese; simplified Chinese may not be used.
2. The ending requirement of the company name, the last word of the English name must be “Limited”. Although Ltd and Limited have the same meaning, according to section 102 of the Companies Ordinance, the last word of the English name of a limited company must be ” Limited”. And the last four characters of the Chinese name must be "有限公司".
3. Cannot have the same name as other companies.
4. The name of the company must not be too similar to that of other companies.
5. Approval is required for the use of words and phrases such as chamber of commerce, kaifong, levy, savings, tourist board, tourist association, trust, trustee, trustee, trustee, tourism association, tourism development board, chamber of commerce, kaifong, levy, savings.
6. Words regulated by other legislation, banks, exchanges, stock exchanges.
If the name is unusable a new application is required, if the name is too similar to another company a name change direction will be issued, if the name is not changed the company or its officers can be prosecuted with a maximum penalty of a fine of $100,000, if the default persists a daily default fine of $2,000 or a compulsory name change is imposed, so a company name change can not be a simple matter.
Check Company Name
To ensure that the company name can be used, before applying for a company, you can go to the Companies Registry'sOnline Search CentreCheck whether the proposed company name has been registered for use.
It is important to note that a company name is different from a trade mark, and that a company name does not mean that a company name can be used as a trade mark.Trademark RegistrationUnlike the responsible department for company registration, if a company name is to be used for the promotion or operation of its goods or services, a separate application must be made to the Trade Marks Registry for registration of a trade mark in order to be granted protection under the Trade Marks Ordinance (Cap. 559). Therefore, in addition to visiting the Companies Registry's online search centre, it is also necessary to visit the Intellectual Property Department.Online Search SystemEnquiry.
Registered Address
According to the Hong Kong company law, all companies established 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, it should be noted that the registered address must be the actual address, not the use of postal mailboxes.
The registered address of the company will become the public information of the Companies Registry. In addition, many companies do not need an office or shop, so they will choose to use the registered address or virtual office services provided by accounting firms, business centres or secretarial firms, and some people even choose to register the company in their own homes. However, if you use your own home as your company address, it may bring you unnecessary troubles in case of any disputes. Therefore, many people choose to rent a business address. This is a very affordable option, costing as little as HK$1,000 a year, which can reduce unnecessary hassle.
Conclusion
Before opening a company to prepare for the completion of the application process can apply for a company, perfect preparation to reduce the possibility of error, such as you have any questions about the opening of a Hong Kong company, welcome to contact Longfeng business consulting team, we provide one-stop business consulting services, from the registration of Hong Kong companies, open a bank account, and secretarial services, to help you develop a blueprint for the business.
Extended reading: "TheHong Kong Company Lazybones】Hong Kong Company Formation Process, Fees, Time and Frequently Asked Questions in One Article》