Before you begin to set up Hong Kong Limited Company, you need to choose what kind of business structure and management you wish to pursue. Here are some points to consider in setting up a limited company:
You have the option of having a sole proprietorship (either Hong Kong or not) or an LLP or a Limited Liability Company (LLC). The latter is the most commonly known. An LLP is a separate legal entity that exists as an entirely separate legal entity, with all the rights and responsibilities that an individual has. It enables them to protect their assets from other parties. An LLP is also able to carry out other activities such as running their business for profit and earning dividends, which are all fully protected by their separate legal entities.
If you are going to run your business using an LLP, then you will be allowed to operate with other people who have an interest in the same kind of trade as you have. However, you will be under the control of those who have set up the business under a legal entity. They will decide what business transactions to undertake, as well as how they will distribute the income earned by the business.
A Hong Kong Limited Company allows its registered owner to manage his business independently. You do not have to take orders from the directors of the company or any other person. All you need to do is pay them a small fee each year, and they will take care of everything for you. It means that you no longer have to worry about whether you have done enough to increase your revenues, or whether you have done enough to increase your profits. All these concerns are taken care of by the company you have set up.
If you choose the latter, then you can choose to conduct business anywhere you like in the world, and operate with your business and your partners in Hong Kong in whatever way you see fit. However, you will not be allowed to run your business profitably unless you have a substantial amount of money to put into the business as capital.
A Hong Kong Limited Company is also more suitable for those who wish to invest in the stock exchange through offshore company formation Hong Kong. Unlike a corporation, a limited company has no shareholders, and therefore no shares. Instead, you will have several shares that can be traded freely among your investors. The company’s value is determined by the share price of the shares you are trading. And the company’s trading volume.
When it comes to choosing an accountant to help you set up Hong Kong Limited Company, there are many different firms you can choose from it. Some offer free advice, whereas others will charge you for the service. Some may be registered and licensed with the office of the Companies House, while others may not.
So, you will need to make your own choice when deciding on the right company for you, and decide what kind of legal structure and management structure you wish to use to run your business in Hong Kong. The choice is yours, but you may well be glad you did.