Are you planning to open an offshore company in Hong Kong? There are three ways of doing it. You can buy a shelf company, incorporate the business on your own, or seek the assistance of an agency. A shelf company is a business that has already been registered, and the process will involve transferring ownership to the new buyer. Here is a deeper look at the three processes.
Buying a shelf company
Acquiring a shelf company is preferred by people because it has shorter processing time. Because the process of incorporation has already been done, you will only need to transfer the ownership. Besides, a buyer is likely to have a competitive edge when dealing with clients because some prefer companies that look older when doing business.
While the process might sound relatively easy, it gets murky when the new buyer tries to change the bank account details. Often, the banks want to meet all the stakeholders in a meeting which can be an uphill task. Even when the case is presented, the banks still decline to change the details. This means that the new buyer risks having a company that cannot transact business because it lacks an operational bank account.
Opting for a shelf company comes with numerous limitations. Because the company was not registered with specific clients in mind, the buyer must get contended with what is available rather than what is ideal. This could compromise the effectiveness of the business once it starts operating.
There is also a great limitation when it comes to the name. Though the company’s registry allows companies to change names, you have to take what is available and start the lengthy process.
Incorporating a new company
Unlike the process of buying a shelf company, incorporating a new company involves preparing all your documentation and presenting them to the company’s registry. This can be done in two ways;
Register the company on your own
This process will entail preparing all the documents including the articles of association, memorandum or association, initial minutes authorizing the company formation, and copies of shareholders passports. You will also need to carry a name search, get a resident secretary, and local office before presenting the documents to the company registry which could be furnished by www.hongkongtaxfree.com.
Once all the documents are ready and properly presented to the company registry, it will take about two weeks to get the certificate of incorporation. Another two weeks will be required to open a bank account.
Register the company using an agency
If you are very busy and cannot get time to prepare all the documentation, it is advisable to consider using an agency. You only need to present the right information to the agency, and it will prepare all the documents, carry name search, serve as your company secretary, and Hong Kong address. This will make the process easy, convenient, and very professional.
While buying a shelf company might look simple, it gets very complicated when it comes to opening a bank account. Many are the people who have incurred huge losses while others start court battles trying to have their cash refunded. The surest and most effective method of having your company up and running as fast as possible is registering a new company.