A minimum of one director is required and full details must be filed with the Public Registry. Currently corporate directors are permitted but as of early 2014 a Hong Kong Company must appoint at least one natural person as a director. There is no requirement for board meetings to be held within Hong Kong and directors may be resident anywhere in the world. Board meetings can take place via electronic means.
Sovereign has the capacity to act as the professional director of your company. Please take the following points into account when evaluating hiring a professional director:
- Tax Residency: Most countries deem a company to be a tax resident in the jurisdiction in which it is centrally or effectively managed and controlled. With a Hong Kong professional director, your company can be managed from Hong Kong, thusly enjoying the tax benefits associated with Hong Kong’s treaties for the avoidance of double taxation. Alternatively, if it is the intention to avoid taxation of the Hong Kong company by your home country or in Hong Kong itself, offshore professional directors are required to make sure that central management and control is indeed offshore.
- Compliance with Local Regulation: With an experienced professional director such as Sovereign, you can be sure your business will be compliant with local regulations.
- Focus on Essential Activities: It is not uncommon that foreign companies create a Hong Kong branch or subsidy to facilitate business development in the region. With financial and administrative matters controlled by a professional director, your employees can focus on clients rather than performing back of house tasks.