Foreign investors are often put in the position of choosing whether to start a new company or purchase a shelf company when expanding in another country. The decision must usually be made based on the legislation of the country. Hong Kong’ Companies Law offers investors the possibility of setting up new businesses or purchasing shelf companies. Our specialists in company formation in Hong Kong will provide all required information about the registration of a new company or the purchase of an already-registered company. Clients will also have the possibility to make a comparison between the two procedures and make the right decision.
The clear advantage in choosing to buy a shelf company in Hong Kong is the registration procedure that needs no longer take place. The shelf company also comes with a history, providing thus more credibility to its owner. Moreover, the investor has the possibility to change its name, to appoint a new director and make other important changes. Perhaps the best advantage offered by a shelf company is the possibility to start trading right away.
The registration of a new company, however, also has its advantages. The first one would be the costs. It is less expensive to register a new company in Hong Kong than purchasing a shelf company. Another advantage of the new company is that the owner will select the name, the type of company to be registered and appoint the director from the beginning compared to the shelf company where all these must be changed. The registration procedure of a new company takes only few days and specialists in company incorporation in Hong Kong will draft the Articles of Association and other required documents and submit the registration file.
Shelf companies are pre-registered companies kept on a “shelf” until they are sold. Shelf companies are registered with the purpose to be sold. When it comes to new companies, the owner will select from the beginning the type of company to register, appoint the director and provide relevant information about the company. Clients can contact our company formation staff in Hong Kong to find out the price of a shelf company and the registration fees to be paid when incorporating a new company.