Demystifying the Duty of a Company Secretary in Hong Kong

17 June 2020

The Hong Kong Companies Ordinance, Chapter 622, makes it mandatory for every company to be registered in Hong Kong to have a company secretary. So important is the company secretary that indeed, your company will not be registered without one. In this post, we will look at the duties of a company secretary in a Hong Kong company.

What is a Company Secretary?

First, it is important to appreciate that a company secretary is completely different from common clerks who do clerical work. According to the Companies Ordinance, a company secretary is a senior officer in a company who is responsible for efficient administration, especially with respect to ensuring compliance with statutory requirements. So, you need to ensure that only the most qualified and committed person gets the job.

The Main Duties of Company Secretary

From the definition of a company secretary, there is no doubt that the roles he does and how he does them will greatly impact the company’s success. So, let us start by understanding the duties of a company secretary.

Fulfilling the Company’s Tax Obligation

When opening a company in Hong Kong, it is important to understand that the administration runs a business economy because the registered enterprises serve as the primary source of revenue. Therefore, the administration takes tax matters very seriously. Your company secretary is charged with the responsibility of ensuring that the company meets all its tax obligations. Some of these obligations include:

Overseeing the filing of the tax returns correctly and on time.
Seeking additional approval or clarifications on tax-related matters.
Registering the company with IRD (Inland Revenue Department).

Keeping Statutory Books

The Hong Kong Companies Ordinance also designates the company secretary as the custodian of the statutory books. This implies that the secretary should have every document that the government might need to inspect. In addition to keeping these books of account, the company secretary is also responsible for:

Updating the details on statutory books.
Producing and distributing company accounts and reports.

Planning and Attending Company Meetings

As we indicated earlier, the company secretary is involved with top-level management, and one of that roles is planning the company’s meetings. This is considered an important role because it is in these meetings that actions to be taken on different areas, such as books of accounts and employment, are made. Here is a breakdown of these duties:

Organize board meetings.
Participate in board meetings.
Prepare the agenda of the company meetings.
Implement the decisions made during meetings in compliance with laws.
Advise the company on compliance with the law.

Other Duties of a Company Secretary

While the roles we have outlined above are considered the core for a company secretary, they are not the only ones. Other administrative duties include:

Communicating with shareholders, the Stock Exchange, and regulatory bodies on behalf of the company.
Observing the company developments and giving advice to the board of directors.
Guiding the company through the process of liquidation.

If you are planning to incorporate a company in Hong Kong, the position of a company secretary is very important and should only be entrusted to a qualified and experienced person. With the best company secretary, you can rest assured that the business will make the best decisions and grow into the multinational of your dreams.

Read Also:

Mashum Mollah

View all posts

4 Considerations Before Investing in an Oil Change Franchise Under 100k

With such a wide array of goods and services on the market nowadays, it’s no wonder that several types of franchises have emerged in various industries. The competitive market is already saturated with restaurants and coffee shops. If you want to invest in this type of business, think about going for an oil change franchise. Here are some factors to consider before investing a substantial amount in an oil change franchise: 1. Study the Ownership Model: Most oil change franchisors give their franchisees the freedom to develop their branches the way they want it to grow. However, it’s still best for you to determine whether the ownership model stipulated by the terms and conditions of the business will be useful for your goals and work style. When buying a franchise, you’re required to support the brand’s rules and processes from accounting to hiring and marketing. Be familiar with the regulations implemented by the leading company and consult with online resources such as franchiseknowhow.com to learn more about how franchising works. 2. Know the Franchise Costs: You won’t just be buying legal rights to use the brand name and logo for your oil change business. The franchisor may also expect you to purchase equipment from them. Fortunately, you can assess if you can pay off the business’ costs since the law has mandated corporations to present a Uniform Franchise Offering Circular (UFOC). This document provides an outline of the fees that come with the franchise. It also includes your rights and restrictions. This way, you can gauge if the franchisor’s prices are reasonable and realistic. Other costs you must consider include: Initial Payments – This franchise fee serves as a down payment to secure your spot as a franchisee. The average initial franchise cost ranges from $20,000 to $35,000 for most franchises. Royalties – Also known as ongoing franchise fees, franchisors require royalties to be paid monthly or annually. The amount depends on your agreement with the company. Typically, it can be a percentage of your gross revenue or a fixed amount such as $1000 per month. Marketing Fees – Because you’ll be part of a bigger organization, you may need to finance a common advertising or marketing fund. This money will be used for promotional efforts usually at a national level. Required Purchases of Goods – The franchisor may restrict you from buying oil from other suppliers. Check if their pricing is competitive and if you can actually get a profit if you push through with the franchise. Real Estate – If you’ll be renting a place for your franchise, include the cost in your calculations because you may need to pay for deposits before you can start your business. Legal Files – This includes the cost of insurance, licenses, permits, and other legal documents. 3. Determine How to Fund Your Franchise: One of the significant advantages of an oil investment is that it has a high return on investment. However, before you think about your profits, you need to consider how to fund your franchise first. It’s vital that you know the best sources of financial support that will help your business grow. These are a few financial options for you to start an oil change franchise: Franchisor – The main company can help you through debt financing. Franchisors often offer financing for some parts of the business instead of you shouldering the entire cost. Small Business Administration (SBA) – This agency can help you with your bank loan to jumpstart your business. Their loan programs guarantee longer repayment periods to bolster your franchise’s growth. Banks – These lenders work with the SBA to provide financial aid to small businesses. You can also use a home-equity line of credit or a second mortgage on your house, but it’s not encouraged because you risk losing your property if you can’t repay your debt. Family and Friends – The people you trust, and who believe in you, are valuable sources of funds. You can negotiate the repayment period and interest rates with them. Be sure to pay them back according to the terms you both agreed on. 4. Talk with Your Target Market: The people in your city or town probably already have a place where they have their oil changed. Don’t be discouraged, though. You can talk to prospective customers about their experience with the oil change stations in your area. Take note of their complaints on a particular shop and use those to improve your service. Conclusion: Investing in a franchise can provide you with an established brand that will be easier to market than a startup. You will also get enough support from other franchises and gain insights from them on how to facilitate the growth of your business. Consider the factors above and assess whether an oil change franchise is best suited for your goals. Read Also: What To Expect When You Become A Forex Trader 7 Growth Hacking Ideas That Will Boost Your Startup

Social Entrepreneurship – Entrepreneurship Strategies And Many More!

We are living in a world where becoming an entrepreneur is pretty common, and launching your own venture is perhaps more ordinary than we usually assume it to be! So naturally, when concepts of entrepreneurship, investment portfolios, and bootstrapped startups are ruling the business world, it acts as a catalyst for relatively more intrinsic concepts to come up. One such concept is that of social entrepreneurship, something we all must have heard somewhere - from Ted Talks to office meetings, you must have come across this term. Yes, you know what entrepreneurship means or, for that matter, what socials mean. But when the two terms are put together, what does it imply? Keep reading to find out more. What Is Social Entrepreneurship? Let’s Find Out! So what is social entrepreneurship, and who’s a social entrepreneur? Social entrepreneurs are people who pursue novel applications which has the potential for solving problems that are community-based. These individuals are people who want to take the risk and put in the effort for creating the right changes in society through positive initiatives. Social entrepreneurship is based on the idea of finding the road to connecting with the purpose of your life, helping other people find their purpose in life, and ultimately making the right difference in this world. In addition, these entrepreneurs implement several ethical purposes like conscious consumerism, social responsibility in corporates, and impact harvesting. Key Understanding: Social entrepreneurs aim to start businesses for a greater good and not to earn profits. Social entrepreneurs invest in ventures that are often environmental-friendly or philanthropic or even deal with underprivileged communities. Social entrepreneurship is a trend that’s constantly growing, accompanied by SRI (Socially Responsible Investing) and ESG (Environmental Social & Governance Investing). Understanding Social Entrepreneurs: The social entrepreneurship definition points out how social entrepreneurs are not inspired by the whole profit-earning motive of running a business. In fact, these individuals are different from ordinary entrepreneurs who are motivated by profit-earning abilities and have no mandatory intention of leaving a positive impact on the society around them. Notable economist Adam Smith, in his well-known book, The Wealth of Nations, commented, in this context, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest.” What Smith wanted to point out was that when people go after their best interests, there is an automatic inclination toward making decisions that usually benefit others. For instance, a florist wants to earn a livelihood for supporting her family. In order to accomplish the same, the florist will produce products that help thousands of people. Read More: How To Become An Entrepreneur? Social Entrepreneurs And Their Goals: Social entrepreneurship seeks to address imbalances such as determining all root causes of major social issues, the social stigmas associated with being part of any community, and the like. The primary goal of social entrepreneurs is to not earn profits. Rather, these entrepreneurs aim towards implementing vast improvements in the society around them. Naturally, social entrepreneurs must be financially savvy for succeeding in their causes. This is where both the ESG and SRI forms of investing make an appearance to save the day. Strategies And Entrepreneurial Ventures: How To Become A Successful Social Entrepreneur? In case you wanted us to define social entrepreneurship, then we are guessing you have understood that part. But what’s the point of finding out the definition if you want to become a social entrepreneur. Moreover, it’s only natural if you are still here, it means that you are curious about the strategies relevant to social entrepreneurship. So without wasting any further time, let’s check out a few effective strategies relevant to social entrepreneurship. Think About The Future Instead Of Being Stuck In The Past The past can be tempting. You can spend days dwelling in the past, reminiscing about social entrepreneurship ideas that made so much sense back. Instead, prioritize the future - become future-oriented in setting your goals. If you are not forward-thinking with your vision, then how will you evolve as an entrepreneur. Secondly, the world we live in is constantly evolving, and if you don’t keep up, how will you make a difference that matters? Be curious and attentive. Observe everything that goes around. Social and creative entrepreneurs are intuitive about future trends and needs. Commit To Making A Difference: The world we live in is always suffering from exploitation and inequality in terms of the availability of opportunities and resources. If you are not committed to making a difference, then are you even doing anything? The whole purpose of social entrepreneurs is to make a difference. These entrepreneurs are always creative in their approach and staunch dedication to creating a positive impact with their work. You May Like To Read This: Small Business Entrepreneurship – Small Business, Strategies And Many More! Did you know that the movement of social entrepreneurship has evolved to include methods and tools for creating an impact and making a difference. If you are interested, then you must check it out. Pursue Opportunities Not Products Or People Peter Drucker is an Austrian-American economist, often known as ‘the father of modern management’ who had pointed out in the past how the catalyst for innovative developments has nothing to do with finding new people or products. Rather, it lies in need to transform the environment. You can either choose to pursue opportunities that matter or run after employees who will bring you profits or, even worse, new products. All the difference lies in your ability to make the right choice. Social entrepreneurship companies around the world followed what Mahatma Gandhi said ages ago, ‘Be the change you want to see in the world.’ You will be able to see and even opt for the opportunities precisely at the right place, only if you want to do so. Frequently Asked Questions (FAQs): 1. What Are The Strategies Of Social Enterprises? The strategies of social enterprises are as follows.1. Focus on the future2. Try to make a difference3. Purse opportunities 2. What Are The 4 Types Of Social Entrepreneurs? The four types of social entrepreneurs are as follows.1. Community Entrepreneur2. Non-Profit Entrepreneur3. Transformational Entrepreneur4. Global Entrepreneur 3. What Are The 5 Strategies Of Entrepreneurs? The 5 strategies of entrepreneurs are as follows.1. Set initial goals2. Create a vision3. Network around4. Keep learning5. Don’t quit 4. What Are The 5 Characteristics Of Social Entrepreneurship? The five characteristics of social entrepreneurship are as follows.1. Deep empathy2. Innovation3. Systemic planning4. Sustainable approach5. Changemakers Logging Out… The world is now filled with social entrepreneurship examples, and if it interests you, then what are you doing, lurking behind blogs, when you can start your venture! Time’s ticking - why wait when you can invest time, money, and efforts in making a difference for a change? Don’t forget to let us know your thoughts on social entrepreneurship in the comments below. Read More: Top 9 Reasons Your Sales Training Isn’t WorkingHow Many Types Of Entrepreneurs Are There In 2022?10 Must Have Marketing Tools To Add In Small Business Growth Strategies!

How to Successfully Turn Around Struggling Companies

Changing courses for a company that is in trouble is not an easy undertaking, but with a sound strategy and some important support, it can be successful. Here are some expert tips on how to turn struggling companies around. 1. Discuss it: MBM Investments Corp.’s Michael Beattie says while most companies want to hide any hint of trouble, it is not the right thing to do. “When a company is in trouble, communication is crucial,” Toronto’s Michael Beattie Talk with the board and any key employees about what is happening. Be sure to have your plan of recovery formalized. They will find it easier to rally around the company if they are confident in the leadership and the way forward. Allow them to offer their input into the business plan and future plans 2. Document a future plan: Stakeholders will want to see that a struggling company has a plan for the future. It is crucial that a company have solid operations, sales/marketing, and business plans documented. It also helps employees, management, investors, and banks, know where they fit into the scheme and how they can help the company turnaround. When you prepare the documents, don’t shy away from including the good, bad and ugly. 3. Revise the plans: Gather the feedback that has been given by stakeholders and key players in the company and incorporates it into a revised business plan for recovery. 4. Talk with employees: Try and nip fear in the bud by having a company meeting and letting your employees in on the plan for making the company successful again. This will give them a chance to see what part they can play in the recovery process. It can also be helpful to give employees a chance to offer feedback to the business plan. 5. Be straightforward with customers: There will likely be rumors about what is happening to your business. You will need to step in and clear up any confusion and let your customers know that you have a plan to turn things around. Give vendors the same courtesy by letting them know where you stand. 6. Get financials under control: If you will have trouble paying creditors, be sure to call them and be upfront about the situation. This is one of the most difficult things to do when a company hits hard times, but it is an important move to get the business back on track. This means cutting back on staffing costs. Letting employees go is never easy but you will need to make the tough decision of who is most important to the future of your company. Read Also: Ways To Take The Employee Appreciation To Next Level In Your Company What Can I Do To Make My Company Website More Profitable And Powerful?

Demystifying the Duty of a Company Secretary in Hong Kong

What is a Company Secretary?