If you intend to acquire a private company in Hong Kong, then first you need to familiarize yourself with the features of conducting such sales transactions in this country. In the case of buying and selling an existing business in Hong Kong, both the seller and the buyer will have to spend time and energy both on checking the real condition of the company (the first - to justify the price, and the second - not to pay too much), and to take into account everything effecting components of prices, including intangible assets, which in some business segments account for the bulk of the real value of the enterprise.
If a deal is being prepared to acquire a large business in Hong Kong, a company or assets, then you must first make inquiries about the structure of the target company. This largely determines how easy the process will go. The number of parties involved also matters, and then the transaction is conducted in the form of bilateral negotiations or in the form of an auction with several potential buyers. If this is an auction, then the transaction may take up to 3 months to complete. But a bilateral deal will require more time due to lack of competition.
It is noteworthy that sometimes attractive assets are sold and bought in Hong Kong behind the scenes. Therefore, it is important for the buyer to devote time and attention to collecting market information about the company, and the seller to focus on pre-sale preparation.
When all preparations are finished, you need to prepare a contractual offer which is followed by the redemption of the enterprise. It is vital to correctly prepare this document so that it fully complies with the Law on Companies requirements in this jurisdiction.
The Companies Registry sets the legal framework for companies registered in Hong Kong. It spells out provisions relating to such aspects as the transfer of property ownership, data protection, transfer of employees, pensions and others.
The process of buying a company in Hong Kong can be regulated not only by the laws of Hong Kong, but also by the legislation of foreign jurisdiction. In particular, there were cases when transactions were governed by Chinese laws.
As to the buying shares in an individual company in Hong Kong, this process is quite simple and fast unless the target business belongs to a certain regulated industry such as banking, securities, telecommunications, and some more.
For any acquisition of a business in Hong Kong or assets, the parties will need to follow appropriate procedures that require knowledge and experience. Specialists of IQ Decision UK will provide legal support for the purchase/sale of a business in Hong Kong for a smooth transition and business continuity. If you still have questions, you can order a consultation on the process of buying and merging a ready-made company in Hong Kong. Please contact us directly by filling out the form below.