When an offshore Hong Kong company starts operations, the role of the company secretary becomes very clear. The secretary is required to register the company with IRD and ensure that it is fully compliant with all existing laws.
To make sure that the company operations run smoothly, it is prudent to pick the right company secretary. However, many investors make the mistake of rushing the selection and ending up with the wrong person. Here are 3 mistakes must avoid when picking a company secretary.
Picking a person simply because he/she is close to the shareholders
In the past, investors preferred to use people they were close to for influential positions such as directors and company secretaries.
However, simply picking a company secretary because he/she is a close relative will be a huge mistake. The person will not have the required knowledge and capability to support the company at different levels. If you must use a close relative or an agency like Accoplus, it is important to ensure that he/she is duly qualified for the position.
Not factoring the long-term company targets when picking the secretary
Every employee you pick, especially those on top management, should be in line with the company’s long term orientation.
If you do not factor the long term targets, there is a likelihood that the company may lose track and stagnate. Before confirming the position of a company secretary, make sure to insist that his plans match well with the long-term orientation of the offshore company.
Using a shareholder with no understanding of Hong Kong market
If you pick a company secretary who does not understand the Hong Kong market well, the chances are that you will not get the great services.
The return on investment might not be realized. To know that a secretary understands the Hong Kong market well, he should have been there for some time and worked in a similar position with good results. If you find it difficult to pick the best company secretary, consider using agency services.