Every public company and company limited by guarantee based in Hong Kong is require to hire a company secretary. The company secretary of a Hong Kong company must be a resident; however, locals and foreigners alike may take up this important role.
There are various company types which exist in Hong Kong today. The type of company which a business owner chooses to establish in Hong Kong is primarily dependent on the needs of the company in question. Two of the company types which are often established in Hong Kong are the public company and the company limited by guarantee. This is because such companies provide their owners with certain important benefits which are not provided by other company types. However, they are also required to abide by certain regulations which do not apply to other company types. For example, every public company and every company limited by guarantee based in Hong Kong are required to hire someone who will serve as the company secretary. A company secretary is a legal requirement for such companies as stated in the Hong Kong Companies Ordinance. Hong Kong company secretaries who are people are required to be residents of Hong Kong. It is also possible for a Hong Kong company secretary to be a body corporate. If such is the case, the body corporate’s registered office or place of business activities must be located in Hong Kong. The primary task of a company secretary is that of ensuring that the company in question is fully compliant with the existing company laws of Hong Kong.
There are also several other minor reasons why every company based in Hong Kong is in need of a competent company secretary. One of these is due to the fact that the company secretary is to serve as a representative of the company. There will be instances during which official authorities will have to contact the company. When such an occurrence takes place, the company secretary is to answer to the authorities on the company’s behalf. Another way by which the company secretary is a company representative is through the overseeing and distribution of the company’s reports and accounts. The company’s shareholders and members are to be informed about these reports and accounts at all times. It is the company secretary who is tasked with ensuring that such is always the case.
Business owners in Hong Kong who intend to have their business listed on Hong Kong’s stock exchange are required to hire a company secretary. This is a legal requirement because Hong Kong’s government requires all such companies to be able to avoid potential conflicts in a legal manner which causes as few problems a possible. A company which has appointed a suitable company secretary can easily ensure that such is the case. There are many advantages, both financial and otherwise, which may be gained by a company owner through the listing of the company in question on a stock exchange. Thus, before the company owner may reap the benefits of this listing, the hiring of a company secretary must first take place.
With regard to the identity of the company secretary in relation to the secretary’s status as either a local or foreigner, one should take note of the fact that the company secretary is required to be a resident of Hong Kong. However, this does not disqualify a foreigner from serving as a Hong Kong company’s company secretary. This is because through the use of the proper channels, it is possible for one to be a foreigner as well as a resident of Hong Kong. Thus, a foreigner is permitted to serve as the company secretary.
Perhaps your own Hong Kong-based company is in need of a company secretary and the services which would be provided by one. Should such be true, allow us at Paul Hype Page & Co to be of assistance to you. We will ensure that the company secretary whom we select for your company is a person who is competent and efficient as well as someone understands businesses in Hong Kong well. Such a company secretary will undoubtedly be of benefit to your company, both in the present and the future alike.