Some of the company owners of Hong Kong might have been considering owning a company which has the status of being incorporated in both Hong Kong and another country at the same time. However, this form of incorporation is not permitted in Hong Kong. A Hong Kong company may only be incorporated in Hong Kong.
Many of Hong Kong’s company owners are also interested in owning a company in a foreign country. There are many advantages to doing so. Owning a company which has been incorporated abroad to accompany one which has been locally incorporated will help the owner of the companies understand more about each market and thus be more able to tailor strategies associated with each individual company to better suit the situation in which each company is. A company owner who owns companies in multiple countries may also use the funds generated by one of the companies to fund business activities to be conducted by the other company if the other company requires any such funding. Another advantage of owning companies based in multiple locations lies in the fact that the employees and directors of both companies may be able to interact and discuss methods to improve the fortunes of the companies involved.
Some company owners in Hong Kong might plan to expedite this process by owning a company which has been incorporated in both Hong Kong and another country at the same time. However, this is not possible. The company laws of Hong Kong require that a company which has been incorporated in Hong Kong may not be regarded as having been incorporated in another country at the same time. Therefore, anyone who is interested in owning a Hong Kong company and a foreign one at the same time must own two separate companies. However, if the business owner has no plans or does not have the funds to do so, the business owner will have to choose between incorporation in Hong Kong and incorporation abroad. This is not a decision to be taken lightly because of external circumstances. It could be the case that a certain company has built up a large network of customers. It might also be involved in one or more important business partnerships. The owner of the company in question might also have planned to form an extensive customer base in either of the two locations involved. Each of these factors plays an important role in the decision of selecting the location in which the company will be incorporated.
Should you have developed an interest in starting a company based in Hong Kong, we at Paul Hype Page & Co can be of service to you. All you have to do is contact our incorporation team and we will supply you with all of the knowledge and information which you might need for the purposes of setting up a company in Hong Kong. We will see to it that your Hong Kong company will begin its existence on the path towards much success.
Some who own a company based in one country may choose to undergo a redomiciliation procedure in order to relocate the company to another country. Redomiciliation can be defined as the official continuation of a company as a legal entity in another jurisdiction. A company which has undergone the process of redomiciliation may maintain the use of its current name, assets, and bank account. It may also maintain all of its existing business contacts. It does not force a company to change its tax residency. It should also be noted that certain banks do not recognize a redomiciled company as the same entity as what it had been in its prior country.
There are many procedures to be completed before a company may officially be regarded as one which has been redomiciled. Furthermore, a company may only redomicile to a new location if redomiciliation is permitted by both locations’ business laws and if there are certain similarities between the respective corporate legislations of both locations involved. Unfortunately, those who own a Hong Kong company ought to know that redomiciliation is not permitted there. Thus, a foreign company owner must first dissolve the foreign company if the owner’s intent is to re-establish the same company in Hong Kong.