The Hong Kong Open Company Act, otherwise known as the HOOSA act, protects the public from many forms of unfair practice. Companies that do not meet these strict standards of fair and honest conduct could be subjected to fines or even to the loss of business licenses and other legal consequences. If you wish to establish a Hong Kong open company, but you lack the appropriate knowledge and experience, the HOOSA Act provides the perfect place to get started. It is an essential piece of legislation to take on board as this is a very significant aspect of setting up a Hong Kong open company.
Before you set up a Hong Kong open company, you need to know your responsibilities as the owner. You need to make sure that you have a complete understanding of the HOOSA Act and the principles of fair trading. There are many sources of information and advice available, but before you start looking at the internet or in a book about open companies in Hong Kong, you will need to know what you are doing.
In a nutshell, the HOOSA Act states that an individual who wishes to open a Hong Kong company must first obtain the necessary permit from the Companies Department before the opening of the company can take place. He/she must then take out the appropriate license for the company and be sure to provide it with a signed document. Furthermore, the individual cannot run the company unless he has a complete set of business license documents, including copies of his certificate of incorporation and registration of his business. If he does not have all these documents, the Hong Kong Company Regulations will state the reasons why you cannot open your business.
Once you have obtained the necessary license, you can then go ahead and register your Hong Kong open company in the Central Business Registry. It will give you a legal address, as well as your legal company number, which you should keep with you whenever you need to give a letter to someone.
The next step after you have registered and obtained your licenses is to appoint a secretary and accountant for the running of your Hong Kong open company. A secretary is a person who answers all questions and helps you in handling your affairs. At the same time, an accountant is responsible for providing a complete and accurate financial report and maintaining bookkeeping records. Your accountant will also take care of any tax and other obligations that may arise because of the running of your company.
Once you have all the formalities in place, it is time to set up your Hong Kong open company. There are different options available for the setting up of a company. Still, some of the common ones are to register it as a limited liability company, or an open-company partnership.
As far as the type of business you set up is concerned, it depends on how much work you want to do and how long it is likely to take you to achieve your aim. The cost of setting up a Hong Kong open company usually isrelatively low, but it will depend on the extent of the undertaking.