Having a Hong Kong Company is very much like having one in mainland China. Both these companies have their own set of rules and regulations in operating this kind of company. If you are planning to open an offshore business or any other type of company in Hong Kong, you may want to consider the benefits of company formation in this regard.
In essence, the managing director plays the most crucial role in determining your Hong Kong company establishment outcoming. The managing director is the person who makes all the decisions of the shareholders or partners of the business entity. Informal terminology, there is no term for the managing director, and hence there are no restrictions on his working scope. Moreover, he can hire other staff members as part of his staff, so there is also no restriction on the number of personnel he has under his command at any given point in time.
There are several benefits of forming a Hong Kong company with the help of a managing director. One of these is that you do not have to register your products’ foreign trade with the Food and Drugs Administration of the United States as it does with China. Besides, when it comes to business transactions in Hong Kong, it is much easier to do such dealings as you will not have to have a resident account in any bank. A business as a foreigner in Hong Kong is not considered an investment by the government.
Moreover, in case of any problems, you will not be under the supervision of any member of your company’s Management Team. It means that your company can enjoy complete flexibility within its rules and regulations and is under no obligation to consult the Management Team you have any concerns or problems to overcome. Therefore, you can handle business issues without appointing a Managing Director to deal with the matter.
On the other hand, a company formation in Hong Kong will only allow registered offices for its directors. It is necessary since it will enable the company to maintain its privacy. It is essential as the public cannot be informed of any company’s beneficial dealings unless the director makes an open statement before the House of Representatives and the Diet.
Furthermore, even if you are a foreigner and wish to establish a private company in Hong Kong, you cannot make direct appointments with registered companies’ directors. Instead, the Secretary for Business’s office, which is usually called the Public Company Registry, will make all appointments for you. It will likewise be the controller responsible for sending invitations for meetings and conferences. The statutory office for the position of a managing director also can dismiss a director for cause. A company secretary’s appointment is also needed when the management team’s general meeting is conducted through a private company’s conference room.
In case you are not a resident of Hong Kong and do not wish to appoint a company secretary for making all company appointments, you can nominate a non-residential agent instead. The appointed agent is not a director of any company and will not have the directors’ powers in a public company. However, this agent can make all company calls and meetings concerning general issues and tasks. You can give instructions directly to the agent, and he will carry them out as he wishes. You can appoint an alternate director you are not satisfied with the performance of the first director appointed.
It would help if you appointed a manager or a director when a company has to do winding up. The court issued the winding-up order, and all the directors have to comply with it. A winding-up order may not be carried out unless all the directors present agree with the winding-up order. Therefore, it is advisable to appoint a management system so that the winding-up order is carried out smoothly and in an orderly fashion.