The Share Capital in Hong Kong
The Share Capital in Hong KongUpdated on Thursday 20th July 2017
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A company’s share capital is represented by the total assets used to run that business. All companies incorporated in Hong Kong must adhere to the current applicable regime for the share capital and the types of shares they are able to issue.
Investors who are new to opening a business in the Special Administrative Region can request the help of a law firm in Hong Kong for issues regarding company incorporation compliance.
The company start-up capital
The Hong Kong Companies Ordinance does not require new company owners to provide a minimum paid-up capital at the time of the incorporation. This regime was implemented together with the new Companies Ordinance, starting with 2014, but it also applies to companies incorporated prior to this change.
Hong Kong has abolished the use of the par value of a share and also that of the authorized capital. There are no restrictions on the currency in which the share capital of a company can be deposited nor on the amount of the said share capital. Hong Kong companies are not required to provide a report on the amount of authorized capital.
We invite you to watch the following video for details on the share capital for companies in Hong Kong:
Types of shares for companies in Hong Kong
Private and public companies limited by shares in Hong Kong are not limited by law to a specific number of shares they can issue. This maximum number of shares can be established in that company’s Articles of Association. The Companies Ordinance does however set forth certain requirements for private and public companies limited by shares as well as for other types of companies in Hong Kong.
The minimum number of founding members for a Hong Kong private limited company is one member and registration with the Companies Registry is mandatory, as well as the requirements for observing the local taxation laws. One of the experts at our Hong Kong law firm can give you additional information about the issues regarding company formation in the city.
Company shares do not have a nominal value. The transfer of shares is possible for the public limited company through a representative who will be designated to handle the transfer and by issuing the property share certificates when the transfer is made.
Company founders in Hong Kong should take into consideration the specific needs of the company when deciding upon the initial amount of share capital. Our lawyers in Hong Kong can provide you with adequate advice on this matter.
For more information about company incorporation matters please do not hesitate to contact our law firm in Hong Kong.