LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Company Incorporation in Hong Kong |

Outline of Company Incorporation in Hong Kong

Hong Kong is one of those Asian countries who have fostered its economy drastically inside the cut-throat competitive Asian market, including nations like China and Japan. Hong Kong is a city situated in the South Chinese Sea with a gigantic limit with respect to trade and exchange. This city provides for diminished tax rates and epic consumer markets as a result of an expanded Export structure, the USP of countries with booming economies.

For what reason would it be a good idea for you to register your Company in Hong Kong?

Company incorporation in Hong Kong gives an entry to the Asian business sectors to foreign financial backers. It is a country that has grown quickly throughout the long term and has been perceived as 'Tiger Economy' all things considered for the group named "Asian Tigers."
Different reasons are-
Trade Oriented market,
Steady and Growing economy,
Admittance to numerous foreign business sectors,
Facilitates entrance to the greatest Consumer Market in this world, i.e., Asia.

Requirements for Incorporating a Company

Resident Director- Resident director is not needed for the incorporation of your company in Hong Kong. Completely foreign claimed companies are qualified to apply for incorporation.
Geographics- It is important to comprehend the geographical information of the area where you are wanting to do your business. It is vital to have familiarity with the social, monetary, and cultural patterns to determine whether the goods/services made would take special care of the nearby populace precisely.
Supply Chain Management- A fundamental viewpoint prior to beginning your business is to acknowledge the supply chain needs of your business. Each business leads to different supply chains. Consequently, the officeholders should understand the supply network of the local area and make planning in like manner prior to setting up an organization.
Nearby competition- Another significant thought is the local competition of the area. The market is controlled by the competition prevailing, and monopoly is exceptionally outlandish for recently settled organizations. So there is a need to examine nearby rivalries that the organization may look at during its tasks around there.
Upward expenses- Calculating the normal upward expenses is vital prior to beginning a business; upward expenses vary as per various regions in a country. This element is fundamental, and the officeholders should attempt to hold this to the base conceivable worth prior to beginning a business.
Local regulations, guidelines, and Tariffs- Every new business hoping to begin its activities in a space should conform to each of the standards, rules, or guidelines set by the able expert around there. The organization should settle the assessments and taxes on schedule as recommended by the pertinent authority. The officeholders actually must analyse and examine down these elements prior to beginning business operations.
Quality contemplations- Maintaining quality is vital for any business. Quality isn't simply restricted to the product or services offered by the business yet in addition suggests the nature of work, life, and other fundamental perspectives for employees for effective working of the business.

Name and Nature of the Business

Naming your Company
A trade-name must be accommodated beginning the incorporation process. The name proposed should be unique so it doesn't create any turmoil among the overall population and authorities.
Nature of business
The significant foundations that can be established in Hong Kong are as per the following:
1. Private Limited Companies
One director is sufficient to open a private limited company. It can be divided into three categories:
Limited by shares: In such companies, persons are liable in proportion to their shares in the company.
Limited by Guarantee: In such companies, the partners are liable to the extent they have guaranteed the amount as share capital, in the agreement made.
Private Unlimited Liability: As the name proposes, it is a company where liability is not limited to a certain amount, and that implies that the business' obligations can be settled with the personal wealth of the member.
There can be a limit of 50 individuals in a private limited organization in Hong Kong.
2. Public Limited Companies
These companies have a comparable arrangement to a privately owned business. The essential distinction is that a public company can offer shares to the public as they are listed in the stock exchange markets. Public Limited company in Hong Kong can have in excess of 50 investors; it is an ideal legal design for huge organizations. There is a need least of at least 2 directors for beginning a public limited company in Hong Kong, of whom one can be a company secretary.
3. Partnerships
A partnership is a plan where at least two individuals meet up to maintain a business. The partnerships are mostly registered through a partnership deed wherein the rights and liabilities of accomplices are referenced. In Hong Kong, partnership agreements are classified as General partnerships or Limited partnerships based on the liabilities of accomplices in the agreement.

Documents needed for Company Incorporation in Hong Kong

Officeholder’s passport copies
Officeholder’s photograph Id Proof
Utility bills of current 3 months
Officeholder’s specimen signatures
Business name for your organization

Advantages of Company Incorporation in Hong Kong

The advantages are as per the following-

Advanced and cost-effective procedure,
Export aligned Market,
Great professional workplace,
Accessibility of skilled work,
Simplicity of carrying on with work;
Fast-developing economy;
Admittance to the world's greatest customer market.

Procedure to get company incorporated in Hong Kong

Pick the name of business and endorsement from the skilled authority
KYC subtleties of proposed investors and directors
Recording of forms and different archives
Online submission of an application
Certificate of incorporation
Opening of a bank account
Tax registrations

Other Important Instruments

Articles of Association- These are the bye-laws embraced by each organization to begin tasks in Hong Kong. AOA comprises of the bye-laws administering the guidelines of the organization, deciding the elements like working hours, leave strategy, and foundation related guidelines of the organization.
Virtual Address- For incorporating your organization in Hong Kong, you should acquire an enlisted address in the organization's name. All the fundamental information connected with the business tasks should be shipped off this location.
Bank account- It is instructed to open a bank account with respect to the organization subsequent to getting the organization's incorporation certificate.
Building a Website and Logo- For showcasing the organization digitally, it is prompted that a business make a site and logo in the organization's name. A logo adds distinctive proprietorship to the business ‘goods and markets the goods to the worldwide consumers. A website is suitable for making the organization accessible to imminent clients over the web.
Enlisted Phone number- It is fundamental for each organization to have a telephone number enrolled with the connected authority to get basic data and correspondences. This telephone should be open for getting calls essentially during the organization's business hours.
From drafting to filing of the relative multitude of important documents, we are a group of particular Chartered Accountants, Company Secretaries and Advocates that will help you in every process involved in the Company Incorporation Procedure in Hong Kong.

FAQs

Concept of LLP

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Structure of LLP

LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.

Advantages of LLP

LLP form is a form of business model which:

(i) is organized and operates on the basis of an agreement.

(ii) provides flexibility without imposing detailed legal and procedural requirements

(iii) enables professional/technical expertise and initiative to combine with financial risk-taking capacity in an innovative and efficient manner

Other Countries where this form is available

The LLP structure is available in countries like United Kingdom, United States of America, various Gulf countries, Australia and Singapore. On the advice of experts who have studied LLP legislations in various countries, the LLP Act is broadly based on UK LLP Act 2000 and Singapore LLP Act 2005. Both these Acts allow creation of LLPs in a body corporate form i.e. as a separate legal entity, separate from its partners/members.

Difference between LLP & ‘Traditional Partnership’

Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct

Difference between LLP & Company

A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.
The management-ownership divide inherent in a company is not there in a limited liability partnership.
LLP will have more flexibility as compared to a company.
LLP will have lesser compliance requirements as compared to a company.

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For what reason would it be a good idea for you to register your Company in Hong Kong?Requirements for Incorporating a Company Name and Nature of the Business Documents needed for Company Incorporation in Hong Kong Advantages of Company Incorporation in Hong Kong Procedure to get company incorporated in Hong Kong Other Important Instruments FAQs Blog

Outline of Company Incorporation in Hong Kong

For what reason would it be a good idea for you to register your Company in Hong Kong?

Requirements for Incorporating a Company

Name and Nature of the Business

Documents needed for Company Incorporation in Hong Kong

Officeholder’s passport copies Officeholder’s photograph Id Proof Utility bills of current 3 months Officeholder’s specimen signatures Business name for your organization

Advantages of Company Incorporation in Hong Kong

The advantages are as per the following- Advanced and cost-effective procedure, Export aligned Market, Great professional workplace, Accessibility of skilled work, Simplicity of carrying on with work; Fast-developing economy; Admittance to the world's greatest customer market.

Procedure to get company incorporated in Hong Kong

Pick the name of business and endorsement from the skilled authority KYC subtleties of proposed investors and directors Recording of forms and different archives Online submission of an application Certificate of incorporation Opening of a bank account Tax registrations

Other Important Instruments

FAQs

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Officeholder’s passport copies
Officeholder’s photograph Id Proof
Utility bills of current 3 months
Officeholder’s specimen signatures
Business name for your organization

The advantages are as per the following-

Advanced and cost-effective procedure,
Export aligned Market,
Great professional workplace,
Accessibility of skilled work,
Simplicity of carrying on with work;
Fast-developing economy;
Admittance to the world's greatest customer market.

Pick the name of business and endorsement from the skilled authority
KYC subtleties of proposed investors and directors
Recording of forms and different archives
Online submission of an application
Certificate of incorporation
Opening of a bank account
Tax registrations