Eleven Quick Tips On Hong Kong Private And Public Companies

Tip 1: According to the HK Companies Ordinance, Hong Kong company incorporation may be either public or private. It can be a company that is limited by guarantee or by shares. If a company is not a private company and is not a company limited by guarantee, then it is a public company.

Tip 2: A Hong Kong public limited Company is limited by shares. Its main difference to a private limited company is that the shares may be offered to the public, and it can have more than 50 shareholders.

Tip 3: A company limited by guarantee without a share capital are usually used for non-profit organizations who need some type of legal incorporation at the Hong Kong government.

Tip 4: As the name suggests, the company is limited by guarantee but not capital. It means that the parties involved are guarantee members and are not shareholders. The members are not required to invest capital, but should guarantee to contribute a predetermined sum to the company. The sum will cover its liabilities. The predetermined sum is fixed liability which is the advantage of a company limited by guarantee.

Tip 5: A company limited by guarantee must file annual returns and certified true copies of all the relevant financial statements, reports of directors and reports of auditors in each financial year.

Tip 6: A Hong Kong private limited company can be known as a private company limited by shares. It is the most commonly type of company for small businesses or trading companies that operate locally in HK.

Tip 7: A Hong Kong private limited company is a separate legal entity. This protects the personal assets of all the shareholders (of the private limited company) from business liabilities.

Tip 8: A private limited company registered in Hong Kong has this one advantage on all the tax benefits, including a free trade agreement with Mainland China.

Tip 9: A private limited company must have least one natural person as director, and can have an unlimited number of directors. All directors may be either individuals or corporations of any nationality, domicile and residence. A sole shareholder may be appointed as a director.

Tip 10: A private limited company must have a registered address (or a registered office). The registered office of the company is required to be a location within Hong Kong.

Tip 11: A private limited company must appoint a company secretary. When the company secretary is a natural person, she must be a person who resides in Hong Kong. When the company secretary is a body corporate (i.e. an entity), the registered office address must be a location in Hong Kong. When the company has only one director, the sole director cannot be the company secretary.