In Hong Kong, it's becoming a norm for entrepreneurs to choose to set up a private limited company. In that way, they can protect personal assets from business risks and liabilities. Their liability is limited to the shares they have invested in. Almost all small to medium-sized companies in Hong Kong are private companies limited by shares. The share capital is divided into shares, with each holding a specific value. When the company makes a profit and there are assessable profits available for distribution, subject to the determination of the board and the general meeting, the investors may receive an interim or final dividend which is distributed by the company in proportion to their shareholding.
How Is A Private Limited Company Structured?
Shareholders
The number of shareholders must be 1 to 50 in number, and can be drawn from residents of Hong Kong, foreign individuals, or even international corporations.
Minimum of one director
There is no limit to the number of directors a Hong Kong private limited company can have. The directors of the company can be both foreign and local individuals. In Hong Kong, it is not a requirement that there must be at least one local director.
Company secretary
The company secretary must be a resident of Hong Kong. However, if the Hong Kong company secretary is a professional company, then the company would need to have a valid TCSP license that is normally issued by the Hong Kong Companies Registry.
Learn more about the advantages of establishing a Private Limited Company i Hong Kong t this Hong Kong Company Registration blog.
