Economic Project

Contents

Introduction

Business Registration

~Meaning

~Registration Procedure for Sole Proprietorship and Partnership

~Registration Procedure for Limited Company

~Registration Procedure for Overseas Company

~Registration Fee and Levy

~Payment Methods

~Cancellation

Sole Proprietorship

~Definition

~Popularity

~Set-up process

~Advantages

~Disadvantages

~Reason of suitable for Small Business

~Examples

Partnership

~Definition

~Features

~Forms/Establish

~Liability

~General partnership

~Limited partnership

~Advantages

~Disadvantages

~Tax rate

~Dissolution and Termination

Limited Company

~Meaning

~Advantages

~Disadvantages

~Private limited companies

~Public limited companies

~Shares

~Procedures of Formation

~Taxes

Comparison

Conclusion

Working Table

Procedures Of Formation

  Every company must be incorporated with name in English or Chinese or both English and Chinese.   Limited companies must end their names with the word "Limited".  Normally, the certificate of Incorporation will be issued within six working days after application.  Shell companies are available for instant use.

  A memorandum and articles of association must be printed and together with a "Declaration of compliance" presented to the Companies Registry. A registration fee of HK$1,720 should be paid.  If the company has a share capital, a capital duty is charged at the rate of HK$1 per HK$1,000.

  Within one month of the incorporation of the company, a Business Registration Certificate must be obtained. The existing fee is HK$2,600 per annum.

  According to the Companies Ordinance, every company must have at least 2 directors. Directors should have attained the age of 18 and should not be discharged bankrupt.

  A notice of situation of registered office should be submitted to the Companies Registry within 14 days of incorporation of the company.

  Normally, the directors of the company open bank accounts after the approval.  Certified copies of board resolution, certificate of incorporation, memorandum and articles of association are generally required to be submitted to bank.1

Setting up a company

~ You need at least two officers (e.g. one or more directors and a secretary)

~ You need a registered office at which you display the name of your company

~ You must be prepared to hold regular directors’ meetings, and shareholders’ meetings (if applicable), and keep accurate records of the proceedings.2

1 http://www.wcpa.com.hk/business.htm

2 How To Start A Business From Home (Third Edition) - Grahan Jones

  How To Books Ltd (1994) P.82

P.33