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Purchase a Company in Hong Kong A presentation brought to you by LawFirmHongKong.com 1

Purchase a Company in Hong Kong

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Page 1: Purchase a Company in Hong Kong

Purchase a Company in Hong Kong

A presentation brought to you by LawFirmHongKong.com

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Page 2: Purchase a Company in Hong Kong

Reasons to Purchase a Company in Hong Kong

• Investors who want to start their business activities faster can choose to purchase a ready-made company instead of incorporating a new one.

• Hong Kong has a business friendly environment and allows foreign investors to have full company ownership.

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Page 3: Purchase a Company in Hong Kong

Types of Companies in Hong Kong

• Ready-made companies can take several business forms, among which:

private limited liability company;

public limited liability company;

public company limited by guarantee.

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Page 4: Purchase a Company in Hong Kong

Popular Company Types in Hong Kong

• Private limited liability companies are one of the most popular company types in Hong-Kong. They require no minimum capital and are suited for small and medium businesses.

• Public limited companies in Hong Kong are used for large businesses and can also be listed on the Hong Kong Stock Exchange.

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Page 5: Purchase a Company in Hong Kong

Purchase a Company in Hong Kong

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• Foreign investors can request the services of specialized company incorporation firms that also offers the option to purchase an “aged company” – a legal entity that has been incorporated but had no business activities.

• The prices for companies vary according to their size and age and it is recommended that you perform a company due diligence before securing the purchase.

Page 6: Purchase a Company in Hong Kong

The Advantages of Buying a Company in Hong Kong

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• Several advantages make buying a company in Hong Kong a good business option for investors:

no need to handle the incorporation procedure, no need to draw up the company’s documents, credibility for creditors, easiness for obtaining a loan from a

Hong Kong bank, the business activities can start right away.

Page 7: Purchase a Company in Hong Kong

Securing the Company Purchase in Hong Kong

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• After the investor decides to purchase an existing company, the final sale/purchase agreement must be concluded. The investor will also be appointed as the new company director and may change the company name.

• Our lawyers in Hong Kong can offer you legal representation during these final stages of company purchase.

Page 8: Purchase a Company in Hong Kong

Company Acquisitions in Hong Kong

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• Another option for investors in Hong Kong is to acquire the shares in an existing company. The company acquisition process is regulated by a number of ordinances in Hong Kong, especially if the company is listed on the Stock Exchange.

• The Companies Ordinance and the Takeovers Code in Hong Kong are two important sources for the laws and regulations on company acquisitions.

Page 9: Purchase a Company in Hong Kong

Company Mergers in Hong Kong

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• In a company merger, two legal entities combine their assets and workforce and form a new joint organization. This procedure, like the takeover or acquisition, is regulated by the Takeovers Code.

• The experts at our law firm in Hong Kong can give you more details about the differences between these two procedures.

Page 10: Purchase a Company in Hong Kong

Assistance for Doing Business in Hong Kong

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• Our lawyers in Hong Kong can help you evaluate your business options and find the best solution for your needs.

• We can also help you with an evaluation of the company you choose to purchase in order to make sure that the investment is secure and the company does not have any debts or liabilities.