We invite you to watch a comprehensive video about the main characteristics of the limited liability company in Hong Kong:
Allowed operations of a LLC in Hong Kong
Under the Hong Kong law, a limited liability company has a separate legal identity, different from that of its directors and shareholders. This status entitles the LLC to engage in the following types of operations:
- sue and be sued;
- get involved into contracts and doing so in its own name;
- own its own assets and property (shareholders for example cannot claim its property);
- develop a form of security for the company's creditors;
A private LLC in Hong Kong has to appoint minimum one director (corporate body or an individual, nationality being irrelevant). The public LLCs however, must have minimum two directors.
The directors must perform a managerial role in the company and their involvement in the business operations vary according to the company's size. Their duties are generally comprised of duties of care and skill and fiduciary ones.
The company must also have at least one shareholder (corporate body or a person). They have the right to vote, to receive input about the legal structure etc. The minimum share capital for a LLC is HKD 1. You can receive further details from our Hong Kong law firm about opening a company on its territory.
Registration process of a LLC in Hong Kong
In order to register a private limited liability company in Hong Kong, the foreign entrepreneur has to follow some steps and submit some documents, such as:
• the Articles of Association;
• a document to the Business Registration office;
• detailed information about shareholders and share capital;
• an incorporation form.
A suitable name has to be chosen for the company that will need to be checked for its uniqueness and then submit the applications to the Companies Registry in Hong Kong. The entrepreneur must also open a bank account for the company. Registering with the Inland Revenue Department is sometimes needed as well, depending on the type of business.