Hong Kong is Asia’s regional center of businesses and offers international services. It is a strategic location for establishing a company. Hong Kong has attracted many entrepreneurs across the world. It is known for its tax friendly procedures, trade approaches, and conducive environment for business, easy company inclusion, free trade and admirable infrastructure. Products and consumer goods are free from exchange controls and capital gain taxes. It is has a strategic position in Asia and its adjacency to China market has increased business opportunities for various organizations. It has scarce demerits on most investments across the world and is therefore called investor-friendly business city.
Every company requires a Hong Kong resident company secretary with high expertise in supervising conformity issues. The directors of every company should focus on accomplishing the set out goals of their companies. With the directors, productivity of the company is attained. With their authority, they are able to ensure that the company abides by the law in most of the activities, which can be executed in their company.
The secretaries have responsibilities to ensure that all activities carried out in a company are in agreement with the law. Their duties are more than that done by a regular desk receptionist. In order to put in line the company with the government, it is important to understand the regulatory structure and laws that govern that company for a business to run smoothly.
A company requires a punctual Hong Kong resident company secretary. She should be able to file the returns on time and to notify with immediate effect critical reports or significant government filings. This will contribute to smooth business operations. A reluctant secretary will cause delays and unnecessary pressure to your company. They may also bring about government penalties that require to be exonerated.
In addition, it is mandatory according to companies Ordinance in Hong Kong, all Limited Companies must have a company secretary. Whenever you want to select a company secretary, you are given a request form to fill. All your requirements shall be availed to you on time. All your post-incorporation processes and vital documents shall be managed to completion.
Some people would prefer to register through paperwork to agency. Paperwork should be done in an orderly manner. Any usage of secretaries in an unlawful manner shall be reported to Companies Registry (CR) of Hong Kong Special Administrative Region.
Professional Directorship Services in HK
According to Hong Kong Companies Ordinance, every company in Hong Kong is supposed to assign a natural person who will act as a director and as a company secretary. With only one director in the company, he or she as a sole director may not be the company secretary.
For any board meeting, it is not a requirement that directors should avail themselves physically in any board meeting. They may live anywhere across the globe. Stockholders are not necessary to be present and living in Hong Kong. Digital media has enabled board meetings to be held, thanks to technology. One of the shareholders may be assigned as a director of the company.
The leadership offered by directors of each company is to ensure that all affairs of a company are managed and controlled from their strategic location. This service is accompanied by other managements of the company or accommodation services.
Effective and excellent directors are people who have the knowledge and experience. They understand the requirement of various organizations. For a director to be selected, he or she should have the company’s interests at heart. He should understand why the company offers the services and a good comprehension of the company.
Directors shall carry out their duties and responsibilities effectively. They shall judge independently. It is a requirement in every selection that any director should practice independent judgment and that they fully participate in decision-making.
Below Are Strategic Guidelines To Be Considered During Selection Of A Professional Director
Tax residency – With appointment of a Hong Kong professional director, he or she will carry out the company’s management from Hong Kong and shall enjoy the tax benefits of Hong Kong’s natives. If you wish, reduce taxation in Hong Kong room your own nation, or in Hong Kong, you will require an offshore professional directors. The management shall be offshore.
Compliance with local regulations – A director full of expertise will ensure that the company is in conformity with the law that governs it.
Focus on essential activities – A branch office ensures business growth in Asia therefore, every foreign company should create a branch office in Hong Kong. When there is an acting professional director in Hong Kong, your workers shall be able to concentrate on other business opportunities.
In conclusion, it is mandatory for a company to have a minimum of one director, one Hong Kong resident company secretary and a branch office in Hong Kong. A company must choose a company secretary who should be a resident in accordance with Companies Ordinance of the laws of Hong Kong. Another option is that there should be an agency with a registered office in Hong Kong. Therefore, there should be either a company secretary or registered agency office in order to start a business in Hong Kong.