By Vlad Cuc, specialist in company formation matters
Due diligence verification in Hong Kong
The company due diligence process in Hong Kong is necessary in business transactions that involve company mergers or acquisitions. Due diligence offers a thorough analysis of the targeted company's history, financial background, credit information and many others.
The process is important in the final decision made by the foreign investor
who is interested in purchasing a Hong Kong company
. Buyers can rely on the information obtained after a company due diligence procedure
to make an appropriate business decision and avoid any investments that could prove to be risky or inefficient on long-term.
Our company registration agents in Hong Kong
can help you with a complete due diligence verification
and the necessary assistance for carrying out company mergers. The process of verifying a company in Hong Kong
is also described in this concise video below. Take a look!
The due diligence process in Hong Kong
The due diligence process is performed on key elements that characterise the business. An expert will target the financial, commercial and operational information about the company so that the buyer will have all the relevant data concerning its status before the purchase.
The company due diligence process can target the following key areas:
- corporate structure
: the company directors and its shareholders
, the share capital, contacts with other affiliates;
- employees: the number of employees and details about their wages and contractual clauses;
- tax compliance
: up to date financial records, tax returns submitted by the company, confirmation that the company has proper books and records; information about any debts and creditors.
Assistance in verifying Hong Kong companies
A well-performed company due diligence process can ensure a successful business transaction. Another benefit is that the buyer will have more control over the purchase. Our representatives can help you shorten the time needed to buy an already existing company or perform the necessary procedures for company mergers.