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FAQs

Company Formation

Solve complex structuring issues with practical answers on foreign ownership, unresponsive directors, and non-stand setups.

If I buy an existing "shelf company" in Hong Kong, am I liable for its past undisclosed debts?

Yes. The corporate entity remains legally responsible for any debts, tax liabilities, or lawsuits incurred before the ownership transfer. You risk inheriting hidden liabilities when buying a shelf company. You must secure robust indemnities and warranties from the seller during your share transfer to protect yourself.

Can I appoint an overseas offshore entity (like a BVI or Cayman LLC) to act as the sole director of my Hong Kong company?

No. The Companies Ordinance mandates that your private limited company must have at least one director who is a “natural person” (an individual). You can appoint an offshore corporate entity as a director, but only if you also have an individual sitting on the board.

How do I legally remove a director from my Hong Kong company if they are unresponsive or refuse to sign a resignation letter?

You can forcibly remove an unresponsive director before their term expires by issuing a “Special Notice” and passing an Ordinary Resolution at a shareholders’ general meeting. You must give the director 28 days’ statutory notice, after which you file Form ND2A with the Companies Registry.

What happens to my Hong Kong company if the sole director passes away suddenly?

If your sole director passes away, your company loses legal representation. This immediately freezes your ability to sign contracts, access bank accounts, or file tax returns until you appoint a new director. You can proactively appoint a “Reserve Director” to step in automatically if this occurs.

If the Companies Registry rejects my proposed company name for being "too similar" to an existing brand, how do I appeal the decision?

You cannot formally appeal a “too similar” rejection. Instead, you must immediately submit a completely new proposed name or add distinct, meaningful modifiers to your original choice to differentiate it. You must then restart the name clearance process and file a new incorporation application with the Companies Registry.
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