What are the different types of companies in Hong Kong?
If you are planning to expand or create a business in Asia, choose Hong Kong. Indeed, before launching any procedure of creation, you must first understand the different types of companies available in Hong Kong. In this article, we will tell you about the companies you can find there.
The Limited Companies
There are five main companies and the first one is the limited companies. This is a company that is usually formed by guarantees or shares. Click on this webpage to learn more about this company so you can determine its usefulness for your project. It is a popular option in Hong Kong and favors the creation of subsidiaries. It is often set up by companies such as for-profit companies. These companies are made up of professional associations, religious and professional organizations as well as charities. With this type of company, it will be difficult for you to create a bank account because it does not meet all the requirements for There are also unlimited companies. In this company, the liability of the directors is unlimited for debts incurred on behalf of the company, including partnerships. Profits are taxed at 15%, which is slightly lower than other companies. Maintaining this type of business will not cost you a lot of money, but it will not be profitable either. So it's important to think about this carefully before you start.
Technically, the branch office is not a separate company in Hong Kong. The foreign company that has been established is the one that takes responsibility for the debts that the branches have incurred in Hong Kong. Because of this condition, it is no longer necessary to conduct annual audits for the branches. When the company submits its annual income tax return to the tax office, unaudited management accounts are generally accepted. As for non-residents, they pay taxes on their profits. Basically, you gain nothing in terms of real tax advantage by forming this type of company. There is also the partnership which is a type of business where two or more people have the ability to join. They can also share the ownership of the business together while providing the funds it will need. They also share the risk and responsibility for the actions of the other partners in the business, even if they are not personally liable.
The representative office
This type of office has no use for foreign companies in the sense that they cannot conduct business and have profits. In reality, it is limited to the creation, as well as marketing links in the market in Hong Kong. Some companies use it to test the market before making a valuable investment in Hong Kong. The best thing to do is to entrust your business creation project to a professional. The advantage is that the latter has the ability to determine with certainty the type of identity that would be best suited to the company. All this with the aim of creating a special and unique company.
In short, knowing your different identities will allow you to avoid making bad decisions that you may regret in the long run.