POPULAR TYPES OF BUSINESS ORGANISATION IN HONG KONG
Main activities of most Hong Kong companies are trade and mediation activities and provision of financial services. Local legislation offers foreigners the opportunity to register the following company types:
- limited liability company (Ltd), which is the most popular option;
- sole proprietorship or individual entrepreneur;
- partnership;
- branch or representative office.
STAGES AND SPECIFICS OF COMPANY REGISTRATION
A diligent approach to the choice of the name of the company is required since Hong Kong has extremely strict rules regarding this matter. All companies registered in this region must have at least one director and one shareholder. The business also needs a local registered address that will be stated in all legal documents. In addition, each company must appoint a local secretary who is a resident of Hong Kong (either an individual or a legal entity).
Registration of a new company in Hong Kong can take up to five weeks, although normally all formalities can be settled in 2–3 days. The owner is then issued a Certificate of Registration, which indicates the name of the company, its type of activity, and legal address. It is valid for a year and needs to be renewed to continue the operations.
For companies that provide asset management services, advise on transactions with securities and futures contracts, and engage in other financial activities, it is mandatory to obtain a special license from the Hong Kong Securities and Futures Commission. This business license is issued after completing the registration process.
