Procedure To Establish Company In Hong Kong

The benefits of company formation in Hong Kong are many, and they come from the advantage of having a flexible business agreement in place. Opening an account in a foreign country is a significant step in setting up a business. It is the next step in the chain, followed by the company’s registration with the appropriate authorities at the right places. Company formation in Hong Kong requires you to open an office in the corporate department of the Government of Hong Kong, and you must make sure that all the requirements of the law are met. If these requirements are satisfied, then the lender will hand over your company’s registration to you.
Some considerations might help clients decide on the amount of compensation claimed to establish company in Hong Kong. First and foremost, you can refer to the Office of Fair Trading of Hong Kong, responsible for attaining standard practices relating to company formation in Hong Kong. The matter of notifications is whether the company formation in Hong Kong has been subjected to any complaint or claim of breach of contract or fraud, or misuse. The law requires that the lender take remedial action within three months after the complaint’s date of service. If it is not remedied, you can refer to the Office of Public Complaints, a government body empowered to prosecute individuals who have committed fraudulent transactions.
Referring to the benefits of company formation in Hong Kong, it is undeniable that they can enable you to avoid paying high taxes or duties. If you are a non-smoker, then the office must issue you a non-smoker’s card, which assists you to avail yourself discounts on cigarettes. It is because many agents earn their commission directly from cigarette manufacturers. You can also benefit from such a scheme if you wish to buy office equipment for resale. The manufacturer helps too as they can increase their market share by selling branded equipment and so on.
If the company fails to comply with the requirement, then the registration can be cancelled. Besides, the court may grant the plaintiff additional damages to compensate for the damage caused due to the negligence of the defendant. However, if the case is lost, the plaintiff must reimburse all the costs involved in filing the lawsuit.
Another type of proceedings relating to the law in Hong Kong is the derivative actions. A derivative action relates to an action taken on Hong Kong’s territory by one person against another person. For instance, if a distributor in Hong Kong carries out business with a retail outlet in the country of China, the distributor would be deemed to have entered a derivative action. Similarly, suppose two retail outlets in Hong Kong carry out business under the same roof. In that case, the retailer who controls both the offices is considered to have entered a derivative action. In other words, if a defendant agrees to pay compensation to the plaintiff in Hong Kong for injuries caused by a breach of contract by that party, then the agreement is a derivative action.
There are two other types of proceedings in Hong Kong: the ordinary administrative procedure and the statutory procedures. With the former, all the statutory formalities are followed. With the latter, the process is generally simplified with the introduction of the provision giving power to the court to deal with the matters referred to it under the company’s schedule of registration. However, the condition does not deliver absolute power to the court. The court still can refuse to register a company unless it is satisfied that the registration requirement would not cause undue interference with the freedom of commerce and the operation of the company’s business. It is necessary to apply for the company’s registration with the Office of the Secretary of State before the date of submission of the document of registration.
There are various types of proceedings in Hong Kong. The proceedings regarding the determination of the liquidation of a company are extraordinary. They have to be brought into being within three years after the date of issue of the winding-up order. All the other procedures concerning establishing a company in Hong Kong are in the company’s interest only.