6 things to know about starting a new company. Form a limited company? Set up an unlimited company? The most cost-effective way to set up a company? The cost of setting up a company? Let me tell you all I know!
When it comes to the beginning of success, whether you have just graduated or decided to make your career take off, you can start working hard from one person, then become a giant enterprise with dozens of people or even thousands of people.
Establishing a limited company is definitely your only way.
I believe everyone knows that the procedures for establishing a company or opening a new company are complicated. We will now explain to you in detail.
What is better? an unlimited company or a limited company? Which one is more profitable and less risky? The benefits of starting a company
When deciding to establish a limited company, we must first understand the legal status, debt obligations and annual tax arrangements of the limited company. First, the limited company can have asset contracts signed and belong to the legal status of an independent legal person organization. Only a limited company can have its own owner or partnership. The name of the property and the signing of the contract have the legal basis and the highest characteristics. As mentioned above, the limited company will be more convenient when cooperating with large public enterprises.
Ultimately, the debts of the shareholders of the limited company to the limited company and their capital contributions. Once the company’s irrevocable debts, the company not only needs to liquidate, but also does not involve the shareholders’ personal property. On the contrary, an unlimited company has unlimited risks to the company’s debts. If the company fails to pay off the debt, the proprietor must repay the company’s debts with private property.
In addition, according to the Company Law, the annual taxation arrangements should be paid attention to, which should be reviewed by an independent accounting firm and an audit report should be submitted to the tax authority. Speaking of tax filing, all the company’s recurring expenses, including directors’ remuneration, can be deducted and transferred to the company’s personal income tax. Starting from 2020, the tax will be 8.25% (if the two-tier profits tax is not attached, it is 16.5%).
Although unlimited companies do not require annual audits, and the government’s income tax is only 7.5% (if the two-tier profits tax is not included, it is 15%), but private expenses cannot be deducted, and the wages of the proprietor and his spouse cannot be deducted.
I know that the establishment of a company requires the articles of association, how can I find a sample?
After deciding to establish a limited company, everyone will encounter this big problem. I am an ordinary person, and I am not a lawyer or accountant. How do I write the articles of association?
Don’t worry too much, because the company registry is very user-friendly and there are samples in their website.
There is a form called the Articles of Association for you to fill in. If you apply to become a private limited company, you can choose to fill in a simplified version of the sample. The content to be filled is usually the number of company shares, the total amount (in Hong Kong dollars or foreign currency) and the directors and shareholders’ composition.
Decide the company name and put your dreams in it!
Note for opening a company: If you want to set up a local limited company, you must first register the company name referring to the registration guide before you can create a limited company.
If you want to get your company name, the applicant must obtain the company registration online as soon as possible to check whether the company name is similar. For an existing company name, the company registry may also have a situation that is too similar to your company name. In this case, the applicant It may be necessary to change a new name, otherwise the registry may deny your application.
In this situation, don’t be upset, just think of a new name, not too similar to the former name, then let’s apply again.
To start a company, you don’t have to rely on other’s help. You can fill in the forms yourself. The secret of forming a company with only HKD1.
The secret of the so-called HKD1 to start a company is here, do it yourself and don’t rely on others!
The process of opening a company: Applicants must go to the company’s website to download the incorporation form. The form can be divided into a NNC1 form specifically for the establishment of a company limited by shares, or another NNC1G form for a company other than a company limited by shares.
For example, a company limited by shares (NNC1) is the most common one. In addition to preparing company information, applicants must also decide whether the company will form reserve-director and directors. Please remember one thing. Forms could still be filled out by hand many years ago, but now It’s no longer possible.
The entire form must be typed on the computer and then printed out.
Otherwise, after preparing for so long, in the end the application is not approved, and all previous efforts will be wasted.
In addition to filling in the form, we also need to fill in a notice to the Business Registration Office, that is, the IRBR1 form can be downloaded at the same place. This is only one page. Applicants must choose only one and decide to pay for one or three years.
One year is HKD250 and three years is HKD3,950.
It’s almost done. Let’s talk about the monetary terms.
Cost of setting up a company: In addition to the above business registration fee, there is also a Hong Kong company registration fee of HKD1,720. If the applicant chooses a one-year business registration certificate, how much will it cost?
HKD250, plus this registration fee, is a total of HKD1,970 yuan. Isn’t it great.
In the end, the establishment of a limited company is not that expensive, right!
Of course, if you want to apply for a three-year business registration certificate at one time, it is 3,950+1,720 or 5,670.
In fact, it is not very troublesome to pay it once a year.
Of course, after choosing a new company name, you can also use the electronic service website of the company registry to submit application documents.
After successfully setting up a company, does it mean opening a bank directly?
Many people think that opening a bank is necessarily included, and this is completely wrong.
Since all countries have begun anti-money laundering activities, opening a bank account has become a threshold.
But don’t give up!
As an entrepreneur, you have a strong spirit and capital as your philosophy. Before starting a business, you have been able to calculate expenses and responsibilities to ensure the smooth progress of your business process. The opening of a bank is not delayed.
Talk to our experts in this area now!
Start a company and let your dreams come true.