Contributed by hongkongtaxfree.com
When you incorporate a company in Hong Kong, some of the main requirements include a bank account and physical address. More importantly, you will be required to have a resident secretary before operations can start. The secretary is important in helping the company to comply with all statutory and regulations set out by the relevant legislations. In this article, we outline ten most important roles of a company secretary in Hong Kong.
Why Hong Kong insists on company secretary so much.
When people open their offshore businesses, the most outstanding requirement by the Hong Kong administration is the company secretary. The secretary serves as the main link between the business and statutory organs. Every question regarding the legitimacy of a business operation will be directed to the company secretary. In the case of changes in legal requirements by the Hong Kong administration, it is the company secretary who is responsible for implementing them. According to the Hong Kong Company Ordinances, the company secretary is deemed to start the roles of the company the same day of incorporation.
The main roles of a company secretary in Hong Kong
Picking the right company secretary
Every document, especially the statutory types, bears the figure of the company secretary. It is the duty of the company secretary to ensure that every event is completed in line with the law. Because of this, the selected individual should be a highly skilled and experienced person to drive the company to the next level. Note that while the tasks are in most cases statutory, they often overlap with administrative requirements.
In the event that the company wants to use its shareholders; it cannot be possible of the shareholder is only one. However, if the company has more than two shareholders, one of them can serve as the secretary. The main reason for this limitation is that the directors have a lot of tasks including marketing, administration, and following various deals that do not leave them with ample time for accomplishing other legal requirements.
To pick the right company secretary, many people especially those operating outside Hong Kong often find it very difficult. This is because they have to place ads on the dailies, vet applicants, and follow the set regulations on employment. A better method of selecting the right company secretary is using an agency.
Company registration agencies provide the best way to identify a great secretary. Indeed, most of them specialize in getting the best secretaries and offices for companies. They have good records of professionals willing to serve as your secretary so that you do not need to place ads on the newspapers or juggling with vetting processes. If the company will not be very busy, the agency can organize for you to share the same secretary to keep costs as low as possible.