Why Use a Ready-made Limited Company to Buy Property?
If you wish to buy property through a company, the first step is to own a limited company.
Incorporating a company takes at least one to two days, and the registration process can encounter errors leading to delays. For example, if the company name search does not comply with regulations, if the payment process fails due to network issues, or if there are errors with the electronic incorporation service via the ICRIS server, delays will occur.
After completing the incorporation process, time is still required to draft the Articles of Association and prepare the company green box and seals, which takes at least one to two days. However, as a ready-made company is already registered, there will be no registration delays.
5 Benefits of Buying Property via a Ready-made Shell Company
1. 100% Guaranteed Registration
Since the company is already registered, there will be no errors that could delay the signing of contracts.
2. High Efficiency and Speed
3. Articles of Association Comply with Property Transaction Requirements
The shell company Articles of Association use Sample A – Articles of Association for a Private Company Limited by Shares <Simplified Format>. This ensures compliance with the requirements for holding property through a limited company. General Accounting has sold over 1,000 Hong Kong shell companies; before the implementation of cooling-off measures, most were used for ready-made company property transactions, parking space investments, and cross-border license plate applications.
4. Meets Bank Account and Mortgage Requirements
The ready-made company package includes Certified True Copies by a practicing CPA of all registration documents, the Business Registration Certificate, the Certificate of Incorporation, and share transfer documents. Company owners can use these Certified True Copies to open a limited company bank account and apply for a property mortgage.
5. Immediate Provision of Registration Documents
All ready-made companies are already registered. Upon payment, the company seals, Articles of Association, Business Registration Certificate, Certificate of Incorporation, and Companies Registry documents are provided immediately.
Is a ready-made company a limited or unlimited company?
A ready-made company used for purchasing property, assets, or investment properties for rental income must be a limited company. This is because an unlimited company lacks a separate legal personality and cannot be transferred; only a Hong Kong limited company allows for the transfer of shares to a new buyer.
New Company Property Transactions vs. Shell Company Property Purchases
| New Company | Ready-made Shell Company | |
|---|---|---|
| Registration Time | Standard: 6-8 working days Express: Same-day completion possible |
Same-day completion possible |
| Risk of Registration Delay | 6-8 working days (may miss out on great deals) | Already established, 100% no delay |
| Fees | Standard: From HK$4,550 Express: From HK$5,550 |
HK$6,000 |
| Time to Obtain Green Box | Standard: 6-8 working days Express: 2 working days |
Same day |
| Time to Obtain BR/CI | Standard: 6-8 working days Express: Same day possible |
Same day |
| Time to Obtain Articles & Seals | Standard: 6-8 working days Express: 2 working days |
Same day |
| Can open a bank account? | Yes | Yes |
| Can apply for a mortgage? | Yes | Yes |
| Stamp Duty for Purchase | Ad Valorem Stamp Duty (AVD) rates | Ad Valorem Stamp Duty (AVD) rates |
FAQs on Buying Property via a Shell Company
Q: Is it legal to buy property using a shell / ready-made company?
A: It is 100% legal. Using shell / ready-made companies for business has a history of over 30 years in Hong Kong. Furthermore, in Hong Kong, a shell company refers to a limited company that has completed registration; it is not a “bogus” or “paper” company.
Summary:
Buying property via a ready-made company is fast and low-risk. Great deals can disappear in an instant; if you find a property you like, you can quickly provide the Business Registration Certificate and Certificate of Incorporation to estate agents and lawyers to proceed with the shell company property transaction. You can learn more about these two methods of buying property under a company name, including incorporating a new company for the purchase.
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