Hong Kong is one of the world’s most dependable business centers, making it an excellent place to start a firm. Many overseas investors and entrepreneurs are drawn to Hong Kong by various attractive incentives; nevertheless, they must satisfy certain conditions to establish a Hong Kong business. One of the most important considerations to keep in mind is the appointment of a company secretary in Hong Kong. Throughout this post, you will learn all you need to know about Hong Kong Company Secretary.
Hong Kong Company Secretary: An Overview
According to Section 474 of the Companies Ordinance (Cap. 622), having a company secretary is a pre-requisite for every company incorporated in Hong Kong to do business. So, what exactly is the role of a corporate secretary in Hong Kong?
As a company secretary, your primary role is to ensure that the business and its operations comply with all the applicable statutory rules and regulations in line with the Hong Kong Companies Ordinance. As a general rule, the company secretary’s role is significant to a Hong Kong-based organization’s direction, administration, and corporate governance.
Contents
Advantages of Employing a Company Secretary in Hong Kong
The importance of a Hong Kong company secretary cannot be overstated.
According to the Business Ordinance, it is a mandatory necessity. So, if you wish to create a Hong Kong company, you will have no alternative but to engage a company secretary as a part of the registration process. It really should be emphasized that if a firm does not employ a competent company secretary, the company may be unable to get a listing on the Hong Kong Stock Exchange.
Additionally, a company secretary in Hong Kong is essential to the development and long-term viability of the company.
The presence of a company secretary has several essential advantages, two of which are as follows:
More effective coordination of business with Hong Kong government officials.
A Hong Kong company secretary collaborates with the firm’s directors and shareholders. They also engage with a range of government and regulatory authorities responsible for overseeing operations and activities.
Some of the statutory authorities with whom company secretaries must collaborate include:
- the Registrar of Companies
- the Inland Revenue Department
- the Stock Exchange of Hong Kong
- the Securities and Futures Commission of Hong Kong
Exceptional compliance with Hong Kong legal requirements
Specific responsibilities must be fulfilled to ensure a successful company establishment and administration in the Hong Kong jurisdiction.
With the assistance of skilled company secretaries, they will assist you in understanding and taking the appropriate and orderly measures to comply with Hong Kong legislation, ensuring that the business runs smoothly and without running afoul of the regulations.
Company Secretary’s Responsibilities in Hong Kong
The duties and obligations of a Hong Kong company secretary are many and varied, ranging from administrative to management responsibilities and duties. The following are some of the essential responsibilities of the corporate secretary:
Accomplishing tax-related responsibilities
For entrepreneurs considering Hong Kong company registration, taxation is one of the most important considerations. However, there are some tax requirements for Hong Kong-based businesses, which should be taken into consideration.
The company secretary is responsible for ensuring that the firm’s tax obligations are met on time and correctly.
What is it that they genuinely do?
- Ensure that the company’s information is registered in the relevant government agencies by registering with the Hong Kong Inland Revenue Department (IRD).
- If the firm is designed to cope with tax-related issues, it should seek clarification or additional authorization from the appropriate authorities.
- After each fiscal year, file your tax returns on time and in a logical manner to avoid penalties.
Maintaining mandatory records
Keeping all papers that should always be available for government examination requires a Hong Kong company secretary.
What is it that they genuinely do?
- Ensure that all of the company’s statutory papers are up to date
- Update any changes to the information on file
- Produce, publish, and distribute the company’s financial statements and reports.
The organization of corporate meetings
Returning to the fundamental duty of any secretary of a corporation, a Hong Kong company secretary is the person in charge of planning the corporation’s meetings.
What is it that they genuinely do?
The following are the responsibilities of the board members and shareholders:
- Holding and participating in meetings
- Preparing agendas and minutes
- Ensuring that decisions taken at meetings follow Hong Kong law.
Related read: Holding an AGM in Hong Kong
Notify the corporation of any legislative changes
It seems general knowledge that more changes will be required once the firm has been established. The company secretary is responsible for notifying the in-charge authorities of any changes to the business’s structure.
What is it that they genuinely do?
When a business changes, such as
- The addition or removal of shareholders or directors
- The evolution of its name
- The adjustment of the company’s share capital
- The relocation of the company’s registration address.
It must submit the necessary documentation to the Registry.
Additional administrative issues that may arise
- Communicating with shareholders, regulatory agencies, and the Stock Exchange on account of the corporation
- Keep abreast of current trends in sound corporate governance practice to provide the best advice to the company’s board of directors.
- Research and gain insights into the emerging market to contribute to the launch of business incorporation
Conclusion
The function of the company secretary in Hong Kong is essential in assisting your company in running effectively, mainly to ensure that it entirely complies with all applicable rules and regulations. It should be emphasized that it is a critical condition for every Hong Kong business before being established.
Although a business or a person may act as a company secretary in Hong Kong, your Hong Kong firm should be aware of certain conditions for registering an “eligible” secretary. Obtain better advice on hiring a qualified company secretary for your firm by consulting with a company’s business service supplier in Hong Kong, such as Hong Kong Company Registration, which specializes in corporate services.
Related read: Why You Should Set Up a Company in Hong Kong
Hire a Company Secretary today!
Let us handle the compliance for you while you handle your business