FAQ about Authorized Capital of Hong Kong Compan

Does the authorized capital of the companyneed verification?

The authorized capital, no matter how much it is, does not need verification.

What is the difference and relation between authorized capital and issue of shares?

Authorized capital shall be registeredwith Government first. Issue of shares shall be made after capital is registered, so issue of shares shall not exceed the authorized capital. Shareholders shall full y pay the issued shares on proportion of shareholding instead of authorized capital. The future obligation to be incurred by the companyshall be calculated on the basis of issue d shares.

What does the authorized capital represent?

The authorized capital represents:

How much authorized capital will be needed in company formation?

The authorized capital represents the company's financing capacity, and additionally, the authorized capital can also be deemed as shareholders' undertaking to future obligations to be incurred by the company, so the high er the authorized capital, the higher the confidence the public will have on the company. Hong Kong company of limited liability shall have a standard authorized capital of HK$10,000.

What governmental fees need to be paid for increasing authorized capital?

Hong KongGovernment shall charge 0.1% Stamp Duty, that is, for every increase of HK$1,000 authorized capital will charge HK$1.00. No matter how much authorized capital is increased, Hong KongGovernment shall charge Stamp Duty up to HK$30,000 at each time.