Acquiring A Shelf Company In Hong Kong

Acquiring A Shelf Company In Hong Kong

If you are in desperate need of a company and you do not want to go through the difficulties of registration and incorporation, buying a shelf company in Hong Kong could be the best choice for you. In the country, there are companies that you can buy and invest in. The next section of this article will explain the basics of buying a shelf company in Hong Kong.

To start and run a business in the Hong Kong, you can choose to do it in two ways: you can either create a new company, or buy a ready-to-use company.

When there is no hurry to kick off a business, then the process of establishing a new business through the registration is a more acceptable approach. On the other hand, for those people who have time limit or in hurry, acquiring a shelf company serves as another option to their problem.

What Is A Shelf Company?

A “shelf” company, in other words, is a corporate legal entity that has its name and registrations through the Companies Registry and has the Certificate of Incorporation but has never done any business operation. Eventually, this corporation will be for sale to investors who would like to operate immediately as registered companies to carry out any business activity as soon as possible

Some characteristics of a shelf company are:

  • It has already been registered
  • They are business entities that never have actually been involved in doing business or commercial deals.
  • The Company kit including the statutory registers, the company seal and stamp are prepared and available. 
  • It is convenience, facilitating quicker commencement of business operations.

Benefits Of Buying Of A Shelf Company In Hong Kong

Easy And Quick Process

Usually, shelf companies have already been registered with the Companies Registry. Subsequently, the process of setting up the company takes less time than registering a new company. The company registration for a new company can take a week whereas a shelf company’s process is within 1 to 2 working days. 

No Incorporation Processes

There is always an incorporation process to be taken whenever you want to start a company, for this you need to have all the required documents prepared and this might take some time for the process to get completed. You do not have to worry about the company’s incorporation for shelf companies since the company is already incorporated and owning a shelf company only requires paying applicable fees; you can then start the business Correspondingly, if you would like to modify the company’s name, it is possible to do so.

Immediate Business Operations

Shelf Company has fulfilled all the mandatory requirements to run business activity, the business owner can start the business without a long wait as soon as the change of ownership is done.

Business Longevity

Once shelf companies have aged, the company allows its new owners to look more credible as the business has already been registered, and the company’s date of registration is older. Shelf companies are usually older with no less than a year of experience, and this can attract people and increase their confidence when they consider the time to do business with this company.

How Can I Buy A Shelf Company?

The registration process for a shelf company in Hong Kong is pretty simple and smooth. Transferring ownership takes 1-2 business days without real incorporation actions. Here are the steps of buying a shelf company in Hong Kong : 

  • Select 2 to 3 names with the priority levels from the shelf company list 
  • Provide the information about the other company, shareholder, director
  • Prepare documents with information to transfer the founder’s share and change the director 
  • This procedure should be completed immediately after the filing of statutory documents for change of director as well as stamping of a transfer document

Documents Received After Registration

  • Certificate of Intercorporations – A document issued after approval of the registration of companies by the Companies Registry.
  • Business Registration Certificate – The document is issued after registration with the Companies Registry of the HKIRD to show that your organization has been registered with the Inland Revenue Department.
  • The articles of association – Is a documents guiding how the business will run and its regulations. It includes the names of the company, its purpose, capital stock, the organization of the company, and the annual shareholder meetings.
  • Form NNC1(incorporation form) – A form with all the data from the Companies Registry in it, such as the name of the company, its registered address, director and shareholder information, including their address proof and passport numbers, company secretary information company structure, etc.
  • Form ND2A  – A notification about the replacement of Company directors and secretaries.
  • Stamp Instrument of Transfer and purchased and sold notes as the way to tell the share of the company has been transferred.
  • Three company stamps
    • Seal with the round company title
    • Rectangular label with the business name on it
    • Common seal
  • Ownership certificate of shares – A document used to show evidence of ownership of a certain number of shares.

Conclusion

Hong Kong is a country that may have a lot of benefits, not just for foreign investors but also for local investors. Our team of experts at FastLane group can help you assist the whole process of acquiring a shelf company. If you need the service of buying a shelf company or are looking for a recommendation, contact us.

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