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Shareholders according to the type of company
There are several types of companies that can be incorporated in Hong Kong and the minimum and maximum number of shareholders is established as per the company type. A Hong Kong private company limited by shares will require a minimum of one shareholder but no more than 50 such members. When two or more individuals hold common shares in a company, they are regarded as a single shareholder.
A shareholder in Hong Kong can be an individual or another company. There are no restrictions as to the nationality or domicile of these company members and shareholder’s meetings can take place anywhere. The only condition for a shareholder in Hong Kong is to be over the age of 18.
Our lawyers in Hong Kong can help you with information about the qualifications, rights and obligations of a shareholder for a Hong Kong company.
A shareholder’s rights and obligations
A company shareholder must disclose his or her name in order to be included in the Companies Registry, along with other identification details like his or her address. Shareholders and directors can maintain their anonymity by using a nominee shareholders or directors service. Shareholders in Hong Kong are entitled to their dividend payment of the company when profits exist. Also, if the company is liquidated, they are entitled to a part of the surplus of assets (if any) after the company creditors have been paid off.
The duties of a shareholder in Hong Kong concern their personal liability (if applicable for the type of company) to the extent of their investments in the company and the obligation to pay in full their shares in a company. For detailed information about liability and legal rights, our lawyers in Hong Kong can answer your questions.
Shareholders who wish to talk to a lawyer specializing in immigration, if they wish to move to the city, can reach out to our attorneys. The process to immigrate to Hong Kong will consist of renewing the entry permits for business purposes, as needed, for the shareholder who wishes to remain in the HKSAR for longer than the initial visa allows. In time, one can apply for permanent residence, suitable for immigration purposes. You can reach out to our team for details concerning this process.
Shareholders and directors in Hong Kong
Although the company is generally controlled by its directors, the shareholders also hold certain powers and have control over the amendments made to the articles of association, the re-election or removal of directors and must be present in a general shareholder’s meeting in certain cases like changes to the memorandum and articles of association, increasing or reducing the company’s capital, company liquidation and others.
Applying for an investment visa in Hong Kong is a common step before becoming a shareholder and our team can assist you.
If you are a shareholder in Hong Kong and are interested in knowing more about your rights or if you want to open a company in Hong Kong, our lawyers can help. Please contact our Hong Kong law firm for personalized advice.