In Hong Kong, there are no specific laws regarding company administration. However, the Companies Registry and the Companies Regulations Act of the Hong Kong SAR provides guidelines for the management of companies. The Companies Registry is the body that maintains the register of all companies in Hong Kong. The Companies Registry also acts as the referral office for the clearance of foreign takeovers of businesses in Hong Kong.
The primary function of the Managing Director in Hong Kong company establishment Since the principal role of managing directors is to manage the business. In general, the managing director is the president of the entire company. At the same time, he/she is the only employee of the whole company, even though he/she is not the direct employee of all the other employees. Officially, there is no fixed tenure for the managing director, and he has no pension on his part too. Therefore, he may not receive annual leave pay.
Under the Companies Act, a managing director is expected to know accounting, bookkeeping, corporate laws, and insurance matters. The term ‘managing director’ is used to refer to any officer in charge of a business. It applies to directors appointed by the Secretary of State or members of the boards of directors appointed by the boards of directors. In addition, there is a special committee, the Managers and Trustees of Companies, which is empowered to deal with issues of company administration. The company administration law states that any managing director who is not a member of an existing corporation must be a qualified person.
The Companies Act also states that before any company can set up business in Hong Kong, it must obtain the prescribed register of companies. After getting the company’s record, the next thing to be done is registering the company itself. It is done by submitting the Companies House document to the Companies House. Next, the company needs to submit audited accounts to the Securities and Exchange Commission (SEC). Finally, if all these requirements are met, then the company will be registered. Thus, the process of company incorporation in Hong Kong begins at this point.
Another critical issue in company formation in Hong Kong is the selection of an affiliate marketer. The affiliate marketer is the person who brings the clients or the customers to the market of the parent company. He is paid a fee for this service. Affiliate marketers have toensure that the marketing strategies are carried out lawfully and payment is made according to agreed-upon terms and conditions. Company owners can appoint an affiliate marketer either by themselves or through a third party. Through an affiliate marketing agency, company owners can save money on marketing costs.
There are certain benefits of using an affiliate marketer. The main advantage is that there are no upfront fees paid to the affiliate marketer. Company owners only pay after there has been a sale or a purchase of a product. Thus, it allows the affiliate marketer to have a free hand in deciding which products his client will sell and at what price. Also, if the affiliate marketer successfully sells a particular product to a customer, he gets a percentage of that sale as commission. Thus, the Hong Kong company ownerhas to bear only the direct cost of sales, leaving the rest to the affiliate marketer.
The second benefit is that there are no corporate tax payments to the government to operate the business model. Because the transactions are conducted online, it is virtually free from corporate tax. The bank account of the affiliate is used for payment of commissions to the business owners of the Hong Kong company.
The third benefit is that the Hong Kong company establishment does not need to have an office in the city. However, the agent needs to have a permanent address and all corporate tax liabilities are settled through electronic money transfer. Thus, the agent can minimize the cost of employing office space and wages to accommodate employees. All these are ensured by using an affiliate marketer. Using this payment method, the government ensures that its business is stable and will not lose its authenticity or popularity due to lack of corporate tax liability.