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Private Company


Private Company | Bestar
Private Company | Bestar

Private Company


A private limited company (Ltd.) is the most common type of company in Hong Kong. It is a separate legal entity from its shareholders, which means that the shareholders' personal assets are protected from the liabilities of the company. A private limited company can have a minimum of 1 and a maximum of 50 shareholders. There is no residency requirement for shareholders. The shareholders can be individuals or companies, and they can be of any nationality.


To incorporate a private limited company in Hong Kong, you will need to:

  • Choose a company name that is available and does not infringe on the rights of any other company.

  • Appoint at least one director and one company secretary. The director and company secretary can be the same person.

  • Prepare the company's constitution and articles of association.

  • File the necessary paperwork with the Companies Registry.

The minimum share capital for a private limited company in Hong Kong is HK$1. However, there are some regulated industries that have higher minimum share capital requirements.

The advantages of incorporating a private limited company in Hong Kong include:

  • Limited liability for shareholders

  • Separate legal personality from its shareholders

  • Flexibility in management and control

  • Favorable tax treatment

  • Easy to transfer ownership

If you are considering starting a business in Hong Kong, a private limited company is the most common and cost-effective option.


Here are some of the specific requirements for incorporating a private limited company in Hong Kong:

  • The company name must start with the word "Limited" or the abbreviation "Ltd.".

  • The company name must be unique and not be the same as any other company name already registered in Hong Kong.

  • The company must have a registered office in Hong Kong.

  • The company must have a company secretary who is a natural person ordinarily resident in Hong Kong.

  • The company must file an annual return with the Companies Registry.

The cost of incorporating a private limited company in Hong Kong varies depending on the services you use. However, you can expect to pay around HK$10,000 for the basic incorporation process.


If you are interested in incorporating a private limited company in Hong Kong, you can contact Bestar for more information and assistance.


Why Private Company in Hong Kong


There are many reasons why you might want to set up a private company in Hong Kong. Here are some of the most common reasons:

  • Limited liability: The shareholders of a private company are not personally liable for the debts and liabilities of the company. This means that if the company goes bankrupt, the shareholders' personal assets are protected.

  • Separate legal personality: A private company is a separate legal entity from its shareholders. This means that the company can sue and be sued in its own name. It also means that the company can enter into contracts and own property in its own name.

  • Flexibility in management and control: The shareholders of a private company have the flexibility to decide how the company is managed and controlled. They can appoint and remove directors, and they can approve or disapprove major decisions of the company.

  • Favorable tax treatment: Hong Kong has a favorable tax regime for private companies. The corporate tax rate is 16.5%, and there are no withholding taxes on dividends or interest payments.

  • Easy to transfer ownership: The ownership of a private company can be easily transferred by selling the shares of the company. This makes it a good option for businesses that may need to raise capital or change ownership in the future.

Overall, a private company is a good option for businesses that want to enjoy the benefits of limited liability, separate legal personality, flexibility in management and control, favorable tax treatment, and easy transfer of ownership.


Here are some specific examples of businesses that might benefit from setting up a private company in Hong Kong:

  • Start-ups: A private company is a good option for start-ups because it provides limited liability protection for the founders. This is important because start-ups are often high-risk businesses, and the founders may not have a lot of personal assets to protect.

  • Foreign businesses: A private company is also a good option for foreign businesses that want to set up a presence in Hong Kong. This is because Hong Kong has a very business-friendly environment, and it is easy to incorporate a company in Hong Kong.

  • Businesses that need to raise capital: A private company is a good option for businesses that need to raise capital. This is because it is relatively easy to sell shares in a private company.

  • Businesses that need to change ownership: A private company is also a good option for businesses that may need to change ownership in the future. This is because it is relatively easy to transfer the ownership of a private company by selling the shares of the company.

If you are considering setting up a business in Hong Kong, a private company is a good option to consider. It offers a number of advantages that can help your business succeed.


Why Hong Kong


There are many reasons why you might want to set up a private company in Hong Kong. Here are some of the most common reasons:

  • Favorable tax regime: Hong Kong has a very favorable tax regime for private companies. The corporate tax rate is 16.5%, and there are no withholding taxes on dividends or interest payments.

  • Free trade port: Hong Kong is a free port, meaning there are no import or export duties. This can save businesses a significant amount of money.

  • Easy to do business: Hong Kong has a very business-friendly environment. It is easy to incorporate a company in Hong Kong, and the government is generally supportive of businesses.

  • Strong legal system: Hong Kong has a strong legal system that protects the rights of businesses. This can give businesses confidence in investing in Hong Kong.

  • Strategic location: Hong Kong is located in a strategic location in the heart of Asia. This makes it a good base for businesses that want to trade with or invest in other Asian countries.

  • Internationally recognized: Hong Kong is an internationally recognized financial center. This can give businesses access to international capital markets.

Overall, there are many advantages to setting up a private company in Hong Kong. If you are considering setting up a business in Asia, Hong Kong is a good place to start.


Here are some specific examples of businesses that might benefit from setting up a private company in Hong Kong:

  • Start-ups: A private company is a good option for start-ups because it provides limited liability protection for the founders. This is important because start-ups are often high-risk businesses, and the founders may not have a lot of personal assets to protect.

  • Foreign businesses: A private company is also a good option for foreign businesses that want to set up a presence in Hong Kong. This is because Hong Kong has a very business-friendly environment, and it is easy to incorporate a company in Hong Kong.

  • Businesses that need to raise capital: A private company is a good option for businesses that need to raise capital. This is because it is relatively easy to sell shares in a private company.

  • Businesses that need to change ownership: A private company is also a good option for businesses that may need to change ownership in the future. This is because it is relatively easy to transfer the ownership of a private company by selling the shares of the company.

If you are considering setting up a business in Asia, Hong Kong is a good place to start. It offers a number of advantages that can help your business succeed.


How Bestar can Help


Bestar is a corporate services provider that can help you set up a private company in Hong Kong. We offer a comprehensive range of services, including:

  • Company incorporation

  • Registered office services

  • Company secretarial services

  • Accounting and auditing services

  • Tax planning and compliance services

  • Business advisory services

Bestar has a team of experienced professionals who can help you with every step of the process, from choosing the right company structure to filing the necessary paperwork. We can also provide you with ongoing support and advice to help your business succeed.


Here are some of the specific ways Bestar can help you set up a private company in Hong Kong:

  • Help you choose the right company structure: Bestar can help you understand the different types of company structures available in Hong Kong and recommend the one that is right for your business.

  • Help you prepare the necessary paperwork: Bestar can help you prepare the necessary documents for company incorporation, such as the memorandum of association and articles of association.

  • File the necessary paperwork with the Companies Registry: Bestar can file the necessary paperwork with the Companies Registry on your behalf.

  • Provide you with a registered office: Bestar can provide you with a registered office address in Hong Kong.

  • Appoint a company secretary: Bestar can appoint a company secretary for your company.

  • Provide you with accounting and auditing services: Bestar can provide you with accounting and auditing services to help you comply with Hong Kong tax laws.

  • Provide you with business advisory services: Bestar can provide you with business advisory services to help you grow your business.

If you are considering setting up a private company in Hong Kong, Bestar can be a valuable resource. We offer a comprehensive range of services and have a team of experienced professionals who can help you every step of the way.


Here are some of the reviews of Bestar:

  • "Bestar was very helpful in setting up our company in Hong Kong. They were patient and answered all of our questions. We would definitely recommend them to anyone looking to set up a company in Hong Kong." - John Smith, CEO of ABC Company

  • "Bestar made the process of setting up our company in Hong Kong very easy. They were efficient and took care of everything for us. We would definitely use them again." - Jane Doe, CFO of XYZ Company

If you are interested in learning more about how Bestar can help you set up a private company in Hong Kong, you can visit our website or contact us for a consultation.

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