Allotment and Issue of Shares for a Limited Company

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What is an allotment and Issuance of Shares?

 

As a requirement at the time of incorporation, every Hong Kong Limited Company (the “Company”) must issue and allot a minimum of 1 share to its founder / member. However, at any time, should a company’s existing member wish to increase its share capital, they may do so by allotment of shares.

What supporting documents are required for Allotment and Issuance of Shares of the Company?

 

  • the Articles of Association;
  • the Register of Members;
  • the Significant Controllers Register (“SCR”);
  • the latest Annual Return;
  • the copy of passport and address proof of the new member(s);
  • the number of share(s) to be issued and allotted;
  • the amount of capital to be contributed.

What is the process/procedure in an Allotment and Issuance of Shares?

 

  • review of documents;
  • preparing the application for shares form;
  • drafting of board resolution or written resolution;
  • arranging signatures on drafted resolution and share allotment documents;
  • filing of the prepared form to the Companies Registry;
  • issuance of share certificate(s) to new shareholder(s);
  • updating the Register of Member and SCR.

What is the timeline in Allotment and Issuance of Shares?

 

The whole process takes around 2-3 working days, provided that all documents are in order.

 

 

 

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