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Facts checking: Buy Hong Kong Company with bank account, really?

Thursday, October 13, 2016 9:07
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Everybody who hears about operating business, good business environment, and huge potential that is Hong Kong, wants to exploit the huge potential. Well, look at it this way, Hong Kong is the gateway to mainland China where you can get access to very huge market, export products like electronics and make a lot of profits. But, hold on; first things first. To operate a business, you need to have a limited liability company. There are several methods of getting the company you want in Hong Kong. In this article on fact-checking: buy Hong Kong company with bank account, really? 

Buying a Hong Kong Company with bank account 

If for some reason you want to register a business very fast, this is one of the options some people advocate for. Some people prefer the method because of the following reasons; 

  • It takes a very short time to complete the transaction. 
  • Everything had been prepared by the previous company owner and you have fewer things to worry about. 
  • Continuity of the business because previous clients will keep coming and it will be a continuation rather than starting from scratch. 
  • In some cases, having business registered a couple of years ago makes it look more trustworthy. 

Despite the benefits, buying an account is marred with huge complexities 

Over the years, Hong Kong administration has made company registration more stringent to ensure that shareholders are properly protected. While the outlined benefits might look attractive, the remaining part of transfer makes acquiring a company with a bank account more complex, tedious, longer, and therefore, no better than the common registration process. 

  1. The bank requires all shareholders to appear in person to complete the transfer. This can be a very difficult thing because the shareholders and previous directors might be busy and unreachable. Many people who go this route rarely complete the process but end up with a lot of conflicts as banks refuse to change bank accounts. 
  2. Banks also want to understand the new director who is coming aboard just like the previous management. They want to know whether you have the requisite experience and reasons for transfer. This process could take more than the two weeks required if you considered registering a new limited liability company. 
  3. Buying a company with an account could bring about two things; (1) the time for filing books of accounts might be near (2) the company might have accumulated some liabilities. This could lead you to losses even before you start operating. 

Registering a company will cost you the same as buying one with a bank account 

To open a bank account fast and more efficiently, simply identify a good agency and provide all the necessary documentation. Additionally, the agency will help to fast track other documents such as articles of association, get you a secretary, physical address, and ensure the office is up and running for one full year. This is very helpful especially when you want to run business without having to go to Hong Kong many times.  

The agency provides a lot of support that helps you make cost-effective choices

While the main purpose of the agency is to help register limited liability Company, they provide a lot of useful information about keeping the cost as low as possible. For example, if your company will not be very active, you will be advised to share office and secretary services. Besides, they also organize for shared boardrooms, so that the cost of running the company remains as low as possible. 

To get even better services from an agency, it is important to review past performance, clients’ feedbacks, and location of the business.  From whichever angle you look at it, buying a company with a bank account is not as simple as it sounds. It is complicated, comes with huge risks, and is almost impossible to change the bank details of the previous shareholders. 

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