General incorporation details
Prior to the incorporation of a company in Hong Kong or China a decision on the business structure must be made. Please note that the most appropriate business structure depends on key factors such as strategy, tax planning as well as financial aspects. SMATRA provides with its incorporation service strong support for your business set up in Hong Kong and in China. A professional team supports you with the provision of a Memorandum and Articles of Association, Share Certificate, Minute Book, Register, Common Seal and Company Chops during the incorporation.
Incorporation of companies in Hong Kong and China differ simply due to the different legal environment. In Hong Kong the following company structures are possible although the Limited Company is the most commonly incorporated type of company:
- Private Limited company
- Branch office of overseas company
- Representative office
- Partnerships/Sole Proprietorship
Hong Kong as location for holding company
Many international businesses consider Hong Kong as the location for their holding company. This way investments into China can be effectively structured via Hong Kong. This type of market entry has various advantages:
- Tax planning and profit distribution
- Less direct exposure to potential China liabilities
After the decision on the business structure is made SMATRA can continue to support your company with trading and financial services. This way you can entirely focus on the growth of your business in China.