International offshore company formation - About Authorized Capital of Hong Kong Company Limited

Authorized capital shall be registered with 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 inQIDEd of authorized capital. The future obligation to be incurred by the company shall be calculated on the basis of issue d shares.

3)Q:What does the authorized capital represent?

The authorized capital represents:

· The company's maximum financing capacity:
The company finances its existing shareholders or new investors through issue of new shares, so the higher the authorized capital, the more the company can finance
· Shareholders' maximum liability:
If the company liquidates, shareholders shall bear liability limited to the issued but not fully paid capital inQIDEd of authorized capital.

4)Q: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.

5)Q:What governmental fees need to be paid for
increasing authorized capital?

HongKong Government 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, HongKong Government shall charge Stamp Duty up to HK$30,000 at each time.