the share capital in hong kong

The Share Capital in Hong KongA presentation brought to you by OpenCompanyHongKong.com

1

2

A Company’s Capital

• The company’s share capital represents its funds, raised by the shareholders in exchange to obtaining ownership in that corporation.

• Common stock and preferred stock can be used as types of share capital.

3

The Company’s Assets

• The assets of a Hong Kong company are its cash deposits, buildings owned by the company or patents.

• Assets can be tangible (cash, property), intangible (know-how, the name and reputation of that company) and intellectual property.

4

Provisions for the Share Capital in Hong Kong

• There is no minimum share capital for companies in Hong Kong.

• Exceptions may apply if that company requires special permits and licenses, such as insurance companies, banks and financial institutions.

5

The Minimum Amount for Doing Business in Hong Kong

• The Hong Kong Companies Law is the main legal resource for the requirements investors need to follow when opening a Hong Kong company.

• Although no minimum amount is specified, a company’s share capital will depend on its size. Most legal entities start with a minimum amount of 10,000 HK$. The share capital can also depend on the business field.

6

The Usage of Shares

• The shares represent a personal property of the shareholder that can take the form of money or another type of asset.

• All information about the shares and share capital must appear in the Memorandum or Articles of Association of a company in Hong Kong.

7

Types of Company Shares

• The Hong Kong Company Ordinance classifies shares into ordinary, preference or preferred and redeemable preference shares.

• All shares allow its owner certain rights such as voting rights, rights to profits made by the company or the right to receive the amount of money invested in the company in case the company is liquidated.

8

Types of Companies in Hong Kong

• The minimum share capital will largely depend on the type of company registered in Hong Kong.

• Private limited liability companies will often require a lower initial paid-up capital than the larger joint-stock companies.

9

Other Requirements for Hong Kong Companies

• Hong Kong companies need to comply with the business registration requirements. The share capital must be deposited in a bank account opened for the company.

• The profits made by those investors who open a Hong Kong company are taxed on a territorial level.

10

Company Incorporation in Hong Kong

• Investors who need assistance in order to open a Hong Kong company can request the services provided by an expert.

• You can contact us for more details on the authorized capital for Hong Kong companies and other issues related to company formation.

Thank You for Your Attention!

For more information please contact us at:

 + 852 8191 3385 

office@lawfirmhongkong.com

http://www.opencompanyhongkong.com 11