Hong Kong has been the freest economy on the planet for 25 years. It remains a shining force on how to conduct free and open enterprise coming just second to Singapore in 2020.
What Business Structures Are Available To Register In Hong Kong?
While there are several types of business that you could start in Hong Kong, you first need to ask yourself if you would want to run your business operations by entering Hong Kong or from wherever you are located. This decision will also help you in areas such as tax. We have explained each business structure below to help you determine the most suitable type:
|o Sole Proprietorship Business Partnership||o Private Limited Company by Shares|
|o Public Limited Company by Shares||o Company Limited by Guarantee|
|o Branch Office||o Representative Office|
Types Of Business Structures In Hong Kong:
A single owner who is entirely liable for all profits and losses.
Minimum 2 to a maximum of 20 partners join together and share the profits. There is an option for a general partnership where partners are personally liable for profits and debts. There is also an option for a limited partnership where limited partners are only responsible for their initial contribution, and general partners have unlimited liability.
Private Limited by Shares Company
With a maximum of 50 shareholders, a Private Limited by Shares Company is a separate legal entity from its owners/shareholders. With the ability to receive all of Hong Kong’s tax benefits, this is the most common structure that entrepreneurs choose.
Public Limited by Shares Company
Suitable for large companies which want to be listed for raising capital. Allowing more than 50 shareholders, this company is usually listed on the SEHK and it’s shares can be subscribed by the public.
Company Limited by Guarantee
Suitable for charities or non-profit organizations. As compared to being shareholders who spend money, members in this structure are required to guarantee to pay an agreed amount as stated in the company’s article of association if the company goes into liquidation.
An extension of an overseas corporation giving its opportunity to conduct business activities to make a profit from Hong Kong. It is not a separate legal body of its own in Hong Kong.
An extension of an overseas corporation but cannot undertake commercial activities to gain profit. It is suitable for non-commercial operations such as marketing or HR departments.