Company Secretary – The basic job profile

Although the role of a company secretary is to ensure the smooth processing of financial obligations of the company, their job profile sometimes extends. From organizing meetings to filing the tax returns, they are responsible to carry out various tasks at the same time. It is, therefore, hard to figure out what you can exactly mean when you define the job profile of a company secretary service. And, this is what makes them so demanding in the purview of Hong Kong business. 

Every corporation service company should have at least one company secretary. The job profile of the CS can be categories into the following four points:

·         Ownership and board process – Maintaining the company’s statutory registers, organizing meetings between the directors and the board members, attending the meeting, and following up with the implementation of the decision taken, etc. 

·         Corporate Governance – Compliance with the rules and laws formed for the process, implementing the plans in a legal and right way and ensuring all the processing of the decisions as per the Disclosure and Transparency Rules of the Hong Kong Corporate Governance code. 

·         Keeping company record – The CS is basically in charge of maintaining the company records. 

·         Managing shareholders matters – Managing the meetings organized by the shareholders, preparing a detailed report of the meeting and an annual report of all the meeting, managing share registers, etc., are some of the duties of a CS. 

The role of a CS differs from one company to another. They are one of the primal members of a company that represent the whole company. The high demand of CS has led to an increase in the number of companysecretary jobs in Hong Kong. Find the best business consultant that can provide the services of a CS in a full-fledged manner to your company.

Hong Kong companies and its growing popularity

Hong Kong is rising in the world market like no other country in the world. In the last decade, it has reserved a slot in the top ten lists of best economies in the world. The country is growing at an unbelievable pace, thanks to the liberal taxation policies and legal systems setting up business in Hong Kong. The Forbes magazine listed Hong Kong companies in the world’s 2000 largest publicly listed corporations. Named as the Forbes Global 2000, the list included the names of various national and multinational companies who have the highest share of market revenue and are the best in their category. 

In the list of 2013 Forbes Global 2000, 46 companies were from Hong Kong only, with a combined market value of $940 billion. Compared to the area and size of the country, this was a very huge accomplishment. Hong Kong surpassed many other developing nations in this context.  

The result we are seeing is because of the transparency and support offered by the Hong Kong government to its business houses. Hong Kong has very liberal policies for the non-citizens who are looking to establish a business in its flourishing market. A company set upHong Kong doesn’t take more than 30 days. And, if you are going for ready made companies, you can start operations within two days after the registrations. 

Hong Kong has set an example in the world by creating such a sound and stable economy. The company has achieved milestones which its governing country China has not been able to. To set up acompany in Hong Kong, you can simply go for the business consultants. These are Hong Kong-based consultants that help offshore investors in the business incorporation. They will do all the legwork and help in the smooth registration of your company.

Taxation of Hong Kong company incorporation

Hong Kong is more or less a tax haven for its businesses, both domestic and offshore. The country has a significant trading economy that facilitates all kinds of national and multinational companies operating in Asia. It has a very liberal tax policy and there are also ways whereby you can earn tax-free profits. Therefore, if you are thinking of Hong Kong company incorporation, now is the time. 

The huge tax advantage and liberal taxation policies not only favors the domestic investors, but it equally benefits non-citizens who are interested in an HK company formation. The law of tax is equal for every kind of investor. Hong Kong companies can be easily incorporated in the People’s Republic of China or anywhere in Asia. They are slowly becoming the financial hub of trading activities in Asia as companies easily enjoy the tax-friendly environment and business-friendly legal systems. 

Following are the taxation policies of Hong Kong companies:

The taxation policies of Hong Kong is generally based on territorial source principle, which translates to companies incorporated in the country paying tax only on income or profits sourced or earned in Hong Kong. 

The three major tax categories are- 

·         Profits Tax

·         Salaries Tax

·         Estate duty

The profits tax is based on the profits earned or sourced by the incorporated HK Company; salaries tax is based on individual’s income; estate duty is based on the area of property owned by the company.

This is plainly the taxation policies of Hong Kong. There are no withholding taxes on dividends or interests, no capital gains, and no sales tax. 

Therefore, if you are thinking about a limitedcompany formation in Hong Kong, go for it. The country has a great support system for its business houses. Take the help of business consultancies if you are new to the country and they will be of great help.

Registering a Ready Made company in Hong Kong

Ready Made companies or more commonly known as Shelf Companies are the best options for investors who want to start their business operation without wasting any time. Investors generally go for companies that are already registered and documented in the Hong Kong Company Registrar list. One only has to change the ownership and provide the rest of the identity details to own the shelf company and start its operations. 

Ready Made companies are also very easy to register. You can easily choose one from the available list of shelf companies in the Ready made HK companieslist in the Company Registry. If you are becoming the new owner of a company, the registration procedure of the company takes place after the transfer of the shares. 

Other factors like changing the name of the company, relocating the company to a new address, appointing a new director to the company, etc., can also be easily arranged. The forms for registering available online and you can also find other details over there. You can also take the help of the local business consultants who can take care of the preparing the Article of Association and the application form. They will be submitted with the Hong Kong company registry and in due course will be processed for final incorporation. 

As mentioned, there are two ways of going for a ready made company in Hong Kong. First, you can choose any shelf company from the ones listed in the Companies House. Second, you can takeover a firm. No matter what option you take, all the registration and ownership transfer processes do not take much time and the entire control of the business will be in your hands very soon. Find a business consultant as you are highly going to need their services in the smooth running of your business.

Regulatory obligations post Hong Kong company registration

Once you are done with the registration and your Hong Kong business is incorporated, there are some other ongoing obligations that you have to take care of on a regular basis. These are very simple and easy necessities that can be easily procured. Since they are required by the law for every limited company formation, every company registered under the Hong Kong company registry is obligated to serve them. 

Following are the regulatory obligations that serve as a guideline for companies registered in Hong Kong:

·         Submitting the Annual Return – Annual Return of your company is required to be filed within  42 days from the date of the anniversary. This needs to be followed every year. 

·         Annual fee of Business Registration Certificate – An annual fee is applicable on the Business Registration Certificate for its renewal within 30 days to the date of the anniversary. This needs to be paid every year thereafter. 

·         Profit tax return – The Hong Kong Inland Revenue Department is in charge of all the tax returns. Your business will receive its first Profit Tax Return after 18 months from the date of incorporation. Post that, the annual exercise of issuing the return in bulk takes place. Upon receiving the receipt of Profit Tax Return, you need to file it within one month from the date of issue. 

·         Employer’s Return – This is the filing of payroll information for the reconciliation of tax returns filed by the employees. This needs to be filed before 30^th April of every year. 

For all other details, go for a companyregistry search. There are various business consultants that you can partner with for the smooth incorporation and running of your business. They can be of great help throughout the business. From resource allocation to register company online, they will be helpful in every major and minor task.