In 1841, the government in the last dynasty of China ceded China’s Hong Kong to the UK. Based on an agreement signed by China and the UK on 19 December 1984, this region became the Special Administrative Region (SAR) of China on 1 July 1997. In this agreement, this rich territory will enjoy a high degree of autonomy in all matters except foreign and defense affairs for the next 50 years. And under China’s “one country, two systems” formula, the chinese government has promised that China’s socialist economic system will not be imposed on Hong Kong. It also has the advantaged location which is located in Eastern Asia, bordering the South China Sea and China, and convenient for trading.
The region is one of the world’s most crucial and efficient financial centers. Takeing the advantage of no exchange control, sound legal system, efficient transportation and huge communication networks, the business in Hong Kong are attractive for traders around the world. This area is ranked the freest economy in the world. Since then, how to register a company in Hong Kong?
By statute a Hong Kong company must have the following conditions to form. First of all, it needs to offer a new name of the corporation and check out if the name is available. Secondly, copies of ID cards or passports of shareholders are indispensable, and there must be a minimum of one adult shareholder. Thirdly, it is necessary for a company have the registered capital. If the fund is over 10000 HK Dollars, there is statutory requirement that the government will levy 0.1% of stamp tax. Furthermore, the proportion of shares allocated must be confirmed among directors and shareholders. Last but not least, the company ought to fill in common contact information, including directors’ and shareholders’.
Besides, nowadays, an increasing number of people choose to entrust some reliable agents to achieve the company formation. And the process has essential steps below. First, both parties including the corporation and the agent should sign for a power of attorney and an agreement. Second, the firm needs to prepay 50% of total charge to the agent. Then the agent will draw legal forms and information from Companies Registry and Inland Revenue Department, and constitute the articles of association of the company. Third, shareholders should autograph several legal documents and related information which need to be back to the agent subsequently. Later the agent will submit the above documents to CR and Inland Revenue Department to register. When the company formation is finished, the company will pay the rest to the agent.