Foreign Ownership

Hong Kong

Generally speaking, foreign companies will be treated no differently by the authorities in Hong Kong than local companies. There are a few exceptions to this but none that should hinder an e-Commerce. Foreign investment is permitted in all sectors of the Hong Kong economy.

There are no laws in Hong Kong requiring a foreign investor in any particular area of business to have a Hong Kong partner. Therefore, it is open to a foreign investor to own, beneficially, 100% of the shares in a Hong Kong Company (with one share held by a nominee to satisfy the minimum requirement of two shareholders). A foreign investor may establish a place of e-Business in Hong Kong in the following ways:

• by the purchase of the whole of the issued share capital of an existing Hong Kong company which carries on business in Hong Kong or by the acquisition of the business, assets and undertaking of an existing company which carries on business in Hong Kong;
• by the registration of a branch in Hong Kong which will then carry on business;
• by the incorporation of a Hong Kong subsidiary company which will then carry on business; and
• by entering into of joint venture or partnership arrangements with another entity in Hong Kong.

A foreign corporation which has not obtained a Business Registration Certificate, if carrying on business, will not be able to enter into contracts with the Government or otherwise, to hire staff, to open bank accounts, to import equipment, to obtain work permits or to import/export materials.