Formation of Company
Formation of a company is required by Inland Revenue Department and Company Registry if client wants to set up a business.
Client may choose to establish a limited or unlimited company based on individual need. It will be more convenient to set up an unlimited company whilst annual audit is not required. However, the liability of its owner is unlimited. On the other hand, limited company is subject to annual audit and as such, extra cost of compliance is therefore incurred. Annual return filing to Company Registry is also required. However, the liability of its shareholders is limited.
Formation of unlimited company
According to the rules of IRD, notice should be given to IRD within thirty days after the start of actually operation of the company whilst business registration should be done under the same time frame.
Formation of limited company
Certificate of incorporation and other necessary documents should be arranged in Company Registry before the actually business registration is to be done. Besides, memorandum and articles of association and company seal are required and that also add on complexity of its procedure of formation.
Rates
Formation of unlimited company: HK$300 up
Formation of limited company: HK$3,500 up
(Government registration fee, 1st year’s business registration fee and “Green Box” package are
included)
Remarks: We shall assist in opening of bank account for free if necessary.