Because of the positive direction that the economy and market of Hong Kong are heading, more and more entrepreneurs are looking for ways to invest in Hong Kong. However, not many are willing to get through the tedious steps of starting a business from scratch. The good thing is, you don’t have to, as Hong Kong is also home to many shelf companies entrepreneurs can easily take advantage.

What is a shelf company, and how can one acquire it? This article lays down the complete essentials of what you need to know before purchasing an offshore company in Hong Kong. 

What is a Shelf Company?

A shelf company, or a ready-made company, is meant for investors who plan to start a business instantly and not go through the lengthy registration process. Simply said, shelf companies are pre-registered businesses that are ready to be used. 

Some incorporation intermediaries pre-register several companies to resell. Upon purchase of a third party, the will acquire ownership of the company. This change of ownership will be legally reflected in the companies registry by filing for an amendment of directors and shareholders. Once the changes are filed and approved, the company is ready to use it under the new owners’ charge

Acquiring shelf companies prove to be more convenient for investors in Hong Kong. It is a profitable way for entrepreneurs to jump-start their business. It is less hassle and takes a shorter time to process than starting a business from nothing. 

How to Buy and Process a Shelf Company?

Many firms in Hong Kong deal with selling shelf companies. Youselling company’s help can acquire a shelf company that is closest to the ideal business you are looking at a fee. Buying a shelf company is much simpler because you also get the selling company’s help to process the purchase. 

You do not have to go through a registration process any more. Instead, you only have to apply for transfer of ownership and changes in the business’s details. To buy a shelf company, you have to consider the following information:

• Business Name
• Office Address
• Company Secretary (optional)
• Filling Out of Relevant Business Application
• Articles of Association

Other necessary documents may also be required, depending on the industry applied or on other exceptional circumstances. To process the acquisition of the shelf company, you will have to pay a fee, partly for the purchase of the company itself and partly for the processing of amendments. Upon signing the necessary materials, the companies registry will issue the amended articles of incorporation after 2-3 days.

Advantages of Buying a Shelf Company

Investing in business though a shelf company in Hong Kong is advantageous because of the following benefits:

• Faster and more convenient processing
• Eliminates registration processing
• Allows the business owner to focus more on business functions
• It gives a sense of longevity and confidence
• Easy opening of a bank account 

Compliance Requirements of a Shelf Company

A shelf company works as well as any other regular company. As such, the obligations of a shelf company is ultimately the same as that of other Hong Kong companies. The company has to maintain records and file for taxes appropriately.

Acquire a Company in Hong Kong

Are you looking for ways to invest in Hong Kong? Buy a company in Hong Kong today with expert teams from Easy Buy Sell Business. We can help you find the right business for you and provide you with a business for sales portal that allows for convenient purchasing of a business. Contact us today to get assisted in choosing the ideal business for sale in Hong Kong.

Harper Harrison

Harper Harrison is a reporter for The Hear UP. Harper got an internship at the NPR and worked as a reporter and producer. harper has also worked as a reporter for the Medium. Harper covers health and science for The Hear UP.