Establishing a Shareholding Company in China

The establishment of a Foreign Invested Company Limited by Shares (also known as a "joint stock company") was designed to accommodate investors seeking to issue shares to the public or to list on the Shanghai, Shenzhen or foreign stock exchanges (under Chinese foreign investment law nomenclature, the Hong Kong Stock Exchange qualifies as a "foreign" stock exchange). 

Consequently, the establishment of FICLS is subject to stricter conditions than the establishment of Equity Joint Ventures, Cooperative Joint Ventures, and Wholly Foreign Owned Enterprises - so far, applications for the establishment of FICLS have been denied more often than not. Although an FICLS may be set up directly, a Joint Venture is eligible to convert to an FICLS after three profitable years if it meets the conditions set forth below.

The Registered Capital of an FICLS must be no less than 5 million RMB (about US$ 625,000). There be at least 5 shareholders, and 25% of foreign shareholding is required. Like the Equity Joint Venture, profits and liquidated net assets must be distributed in proportion to shareholding.

Promoters

At least two promoters are required to form an FICLS, and more then half of them must reside in China. Further, a promoter's shares in an FICLS are subject to a 3-year lock-up (they cannot be transferred within 3 years of the date of establishment of the company). Share buy-backs are not permitted except under limited circumstances. The promoters' share capital must be at
least 35% of total share capital if shares are offered to the public.

Shares

All shares may be paid for in cash or property, in a lump sum or installment payments. The initial installment payment must be at least 20% of the total share capital, and promoters must pay in full within 2 years after the date that the Business License is issued. Stricter requirements may be set out in the Articles of Association if so desired.

Corporate Governance

Management must be in proportion to shareholding. An FICLS must appoint at least 3 members to a supervisory board, which is responsible for supervising the performance and regulatory compliance of directors and senior executives, and monitoring the company's financial affairs. This requirement is more strictly enforced than is the case with Joint Ventures and Wholly Foreign Owned Enterprises.

An FICLS must appoint between 5 and 19 directors. Board meetings are required biannually with at least 10 days notice. 50% of the directors constitutes a quorum. A special meeting may be forced by one-third of the directors or supervisors, or shareholders holding 10% or more of the share capital.
Significantly for minority shareholders, all board decisions must be passed by majority vote or (in the case of important decisions such as termination, increase or decrease of Registered Capital, etc.) by a two-thirds majority vote - unanimous approval cannot be required. Thus a 25% foreign
a shareholder would have no veto power over any board decisions.

How to Set Up a Business in Hong Kong

The present financial crisis has struck most nations throughout the world to varying amounts. Some nations are on the road to healing, but other nations are taking a while. Hong Kong is among those nations that are recovering quicker than many others mainly as a result of rising support of China. The other elements which have helped its market to grow faster would be its political stability, appealing tax and business incentives, and its own completely free market atmosphere. It's standing as a desirable spot for offshore companies to prepare company has held its ground despite the current global economic recession.

Benefits of Preparing A Business In Hong Kong

1) Establishing Company is Easy: Hong Kong is among the most effective areas on the planet for integrating an offshore business mainly due to its completely free market and trade policies and its own absolutely free small business atmosphere. Moreover, since there are comparatively fewer constraints on investment, it's an investor-friendly business community. It's maintained this status for over a decade. Therefore, there's complete small business liberty for offshore entrepreneurs.

An offshore company may be launched in Hong Kong with hardly any price.

2) Availability of Licensed and Productive Workforce: The workforce is more efficient, productive, has great work ethics and a fantastic can-do mindset, and is proficient in English. Hong Kong also offers a liberal immigration policy, and also the official speech in the work area is English, which makes it an extremely desirable location to begin a small business. Starting a company is also with no hassles.

Nominee services are typically provided by specialist consulting businesses.

The process for establishing an Offshore Business in Hong Kong is easy, quick, and inexpensive since its free market offers low business costs and company taxation, strict privacy legislation, and an efficient workforce. Usually, it takes less than 4 times to prepare a business in Hong Kong, and should assistance from an expert consultancy company is accepted, the process is relatively easy.

Deciding the Sort of Business Be Formed

For incorporation of a business, it's essential to register it together with the Companies Registration under the Companies Ordinance. However, as an initial measure, the entrepreneur must decide the kind of business that he/she wants to form. Essentially, there are two different types of businesses: public and private. A private organization is generally formed for managing a small company, and its attributes are that there are limitations on the best way to transfer its shares; the range of members is limited to 50, that don't include workers and former employees; and the people can't subscribe to any of its shares or debentures. Personal businesses far outnumber the amount of people companies. Furthermore, most businesses are limited businesses, suggesting that the accountability of the shareholders is limited to their individual shareholdings. In the event of a fiscal crisis, where the business accrues high debts and obligations, the resources of this corporation may be utilized to pay back the creditors, however, the shareholders of this business wouldn't have to repay the balance if there are inadequate funds to repay all of the debts. A potential entrepreneur would have to determine the sort of business to integrate in consultation with an expert consultancy company.

The necessary services for preparing the business are verified from the corporate services company after it's accumulated the necessary diligence. The accounting, legal, and tax consequences of business incorporation are settled with this particular firm. Access to the company title is assessed. Afterward, the customer and the corporate services company finalize the best company arrangement for beginning the new firm. This arrangement involves the number of directors and investors. The consultancy company then provides the incorporation records for registering up for the customer. The customer signs the files and returns them to the corporate services company. The interaction with all the appropriate government bodies to the company incorporation is carried out by the expert consultancy company, resulting in the completion of the incorporation procedure.

When the provider is initiated, the entrepreneur will need to start a corporate bank account, get a trade and corporate finance and merchant account, and look for a suitable neighborhood office area or a digital office. It's not hard to start the multicurrency account of the maximum quality, together with Internet banking centers. Another essential adjuncts for beginning a company, like starting a business site, establishing a business logo and search engine marketing, are readily accomplished. Among the most significant benefits of operating a company from Hong Kong is that it's a simple corridor to China, that's the world's third biggest market.

Company Construction

The composition of this business must always have these components: one shareholder; a single manager of any type of home; a company secretary; a documented Hong Kong office speech; auditors out of a Hong Kong accountants firm; and a company registration certificate. It's possible for a single individual to function as a manager, shareholder, and secretary, however when there's just 1 manager, then he/she can't behave as secretary. There's not any minimum requirement for the sum of share capital.

It's advised to employ a fantastic company support supplier for opening a bank account and fulfilling all of the additional formalities, as they'd be conscious of whatever has to be carried out. It's well recognized by global banking associations that conducting business in Hong Kong is with no hassles and is simple with positive elements, like the simplicity of growing building licenses, investor protection, without any limitations on trading in global markets or paying taxation overseas. If the construction of the business is legal and appropriate, it may gain from authorized tax exemptions for gains made from across the boundaries.

The choice to prepare a company in Hong Kong should, nevertheless, be made only after taking into account all of the advantages and disadvantages of doing this with the company aims in mind. It would also be worth it to get a professional opinion by an offshore business expert who provides a third party standpoint and a very clear image of their prospects of company achievement.

HiTouch provides an extensive range of service Audit and Accounting Service as well as tax services that are personalized, wise and one-stop, offering you comfort in your business quests.

Having actually served over 1,000 little and medium-sized companies as well as large firms locally as well as overseas today, HiTouch appreciates an industry-wide online reputation as a trusted Certified Public Accountant firm in Hong Kong. We have the essential experience as well as capability to find up with the ideal solutions that are custom-made to satisfy the requirements of our clients in managing problems worrying Bookkeeping & Accounting Services in China treatment as well as audit requirements.

Accounting

HiTouch provides you with trustworthy bookkeeping services with reference to the cloud-based audit software application platform that can assist to boost your business job performance and success with specialist analysis as well as consultancy. Our knowledgeable team of Hong Kong Certified public accountants provides custom-made audit system implementation solutions or contract out bookkeeping solutions that match various service' requirements.

Audit and Assurance

Our seasoned practicing Hong Kong CPAs are committed to assisting our customers in pleasing the legal demands based on pertinent regulations. Our goals are to assist you efficiently take care of the challenges arousing from the examination of economic info as well as prospective threats in a procedure for your shareholders and also stakeholders as well as reproducing success to your organization. With accumulated understanding and also experience in a different type of industries, our professional focus on different target threat of each market, and also carefully manage other variables of the monetary record, in order to avoid risk.

HK Taxation Advisory

By our profession, we do supply useful and also cutting-edge tax obligation recommendations for our customer. We help simplify tax administration and also oversight while supplying presence for making educated tactical decisions-- all with the convenience of a solitary provider. Our experience and also expertise allows our HK taxes specialists to help our clients attain their goal of accurate, cost-effective compliance that likewise provides global exposure to the appropriate details for making calculated decisions. We aid to deliver deep knowledge of Account and Auditing in Hong Kong needs as well as our experience using them in technique in Hong Kong and China.

Hong Kong Company Registration

Registration of a Company in Hong Kong is not a complicated affair. Nevertheless, there are a few points to know about the process that may make it easier for you. Right here are a few of the highlights of things that should 

Company Name

If you are registering a limited Hong Kong business, the name needs to finish in the word restricted. Your business name can be a Chinese name or an English name. You are additionally free to make it a mix of both. You may also add the name of a nation to your company name. It might additionally be the name of a city or community. One of the most important feature of your name is that it be unique. It must not infringe upon the name of another registered Hong Kong business.

Business Concerns

You will not have a lot of restrictions on the type of business that you open. However, it is best that you mention the scope of your business when registering a Hong Kong company. Yet, this is not mandatory, as you are not required to do so.

Company Management

If your Hong Kong Company Registration is for a limited business, there are 3 crucial disclosures that you require to make. These information have to be available for public search.

1. Shareholders - at least one shareholder should be should be detailed. The shareholder has to be at the very least 18 years of ages. That individual can be local or foreign.

2. Directors - one supervisor requires to be provided for an exclusive company. If the business is public, there need to be two directors. Directors have to be in control of the firm and need to have functioning knowledge of all elements of the business daily procedures. The must also see that the business follows all legislations and also guidelines that apply.

3. Legal secretary - This need to be a local resident and also can not be just one of the supervisors or the licensed investor. This assistant serves as the crucial management police officer. The assistant is usually selected by the supervisor as well as serves as the "go in between" with the director of the firm top monitoring. Tasks will certainly consist of taking minutes of meetings, organizing meeting and declaring lawful company papers.

Capital Requirements

Paid-up funding requirement only be the amount of one buck. Registered capital is a various tale. It can be just $10,000. Nonetheless, business that seek financial investments in China will need considerably more.

Basic Steps for Company Registration in Hong Kong

1. Application form needs to be filled out with payment.
2. All legal documents must be personally signed.
3. Documents are forwarded to the proper government department.
4. This should take seven to fifteen working days.
5. Within three months you can pick up all necessary paperwork.

How Can Apply for a China Green Card

Foreigners that want to look for irreversible China Green Card ought to obey the Chinese law, be healthy and have no criminal records. At the same time, they must accord with among the conditions below:

•  The candidates have actually invested in China directly; have with consistent investment condition as well as great income document for more than 3 years.
• The applicants take the task constantly as or above assistant basic managers or factory directors, have the high title of or over the associate professor or assistant scientist, or have take pleasure in the equivalent therapy in China for more than four years, during which the candidates have been staying in China continually for even more no less than 3 years as well as have excellent income records.
• The candidates have excellent and outstanding contributions to China or satisfy the unique demands of the Chinese federal government.
• The partner of Chinese citizens or the foreigners who have obtained the credentials of permanent resident in China, with the marriage lasted for more than 5 years and staying in China for greater than 9 months every year as well as have the stable living warranty and also home.
• The unmarried kids under the age of 18 that come as well as look for refuge with parents.
• The applicants that have no direct family members abroad, come and also seek sanctuary with the residential direct family members, more than sixty years of ages, as well as Permanent Resident Card China for no much less than nine months yearly as well as have a steady living guarantee and also house.

Company Registration in Hong Kong

Hong Kong Company Registration Services

How to Register a Business in HK? 

Our Hong Kong Company Registration Services include 3 promotions for new company registration in Hong Kong. Open firm in Hong Kong online in only one day. Submit us your application. We get hallmark company system registry Hong Kong in the Hong Kong company registration authority.

Hong Kong Small Business Startup only 1 Day

We offer:

• Registered Workplace Address
• Corporate Secretary
• Enrollment at Business PC Registry
• Obtain electronic copies of the following company records over the E-mail:.
• Original Development papers
• Digital duplicate of the Certificate of Incorporation
• Digital copy of the Business Certificate

Note our packages consist of the following:

• Compliance policeman and Data Details Police Officer as per the Hong Kong regulation
• Business office address: (We obtain your mail and send it to you quarterly without any more charges. In case it is immediate, please inform us over the e-mail as well as we will certainly send it through express messenger immediately).
• Public phone line (we receive your phone calls, inform your clients you are away, write their contact details and email the info to you).
• Public fax line: (We get your fax online. We likewise directly forward the e-fax back to you if it is from you).
• Get Mail and Mail forwarding.
• Keeping importance controllers registers as asked for by Law of Hong Kong.

International Driver License in China

Get International Driver License in China

When someone wants to rent out a car abroad, he could intends to think of getting an International Drivers License. He must wish to be familiar with traffic legislation of that particular country. There will often be some variations from residence. We hold ourselves to the highest criteria of honesty as well as expert conduct and do what is finest for the company as well as mission. Driver License in China generously share credit report for the achievements of the organization as well as demonstrate nerve in handling tough decisions as well as poor entertainers.

Ensure your Safety by Car Insurance and International License in China

The objective of HiTouch Consulting is to secure the lives and also interests of International Driver License in China overseas and to reinforce the rights and identification of International Drivers Certificate cardholders. Our job is about touching people's lives in a thousand different means daily. We handle events and also concerns that have a personal effect birth, death, marriage, fostering and also moving to one more country. HiTouch gives the International Drivers License that enables people to travel internationally as well as stands prepared to provide a helping hand when people drop in various situations and obstacles in other nations. We make decisions as well as act each day that create crucial transforming factors in individuals’ lives. We have no higher obligation than guarding individuality, and we are established to accomplish this duty in the best and also most efficient way possible.

Drivers License Information Enjoy a Safe and Pleasant Journey in China

The individual that applies for a global driving certificate must have a valid driver's certificate from his native land. All that this International Drivers License (the IDP) does is translating your certificate into 10 international languages English, French, Spanish, Russian, Chinese, German, Arabic, and Italian, the Scandinavian languages, as well as Portuguese. This makes it much easier for the individual responsible to check out. It likewise certifies the person is having a valid driving license as well as is a genuine one. The IDP reveals details in a typical format that is globally identified. It will have the person name and also other driving permit details. However things that is necessary is that it’s not a motorist’s license and also is a translation so never forget to lug the driving permit along with International Driving License.