What is issued share capital for a Hong Kong company

Issued Share Capital Hong Kong: What It Means on the Balance Sheet

Issued share capital is the total amount a Hong Kong company has received or is due to receive for shares it has allotted to members. It appears on the balance sheet under shareholders' equity. The Companies Registry records the number of issued shares on incorporation and after any subsequent allotment filed on Form NSC1. The register of members is the definitive record of this allotment.

The phrase issued share capital hong kong refers to a balance sheet item fundamentally different from the old concept of authorised share capital. Hong Kong abolished authorised capital when it adopted a no-par-value system under the Companies Ordinance (Cap. 622). Every issued share carries no nominal value. The entire amount received from the shareholder is credited to share capital, with no separate share premium account.

Share Capital Structure Hong Kong

A Hong Kong company's share capital structure hong kong consists only of the shares it has actually issued. There is no authorised capital ceiling in the articles of association. Directors set the issue price for each allotment. The company records the consideration received in the register of members and on the return filed with the Companies Registry.

No Par Value Shares Hong Kong

Since the Companies Ordinance (Cap. 622) commenced, Hong Kong has used a system of no par value shares hong kong. Shares have no nominal or face value. The full amount a shareholder pays for an issued share is share capital. The concept of share premium no longer applies. This simplifies the balance sheet and removes any notional discount or premium calculation on issue.

Company Shares Issued Hong Kong

The number of company shares issued hong kong is stated in the articles of association at incorporation. It can be increased or reduced by an ordinary resolution and the filing of Form NSC11. Each issue must be recorded in the register of members and reported to the Companies Registry. The register of members is the definitive record of share ownership.

Hong Kong Company Share Capital

Hong Kong company share capital comprises only the funds raised through issuing shares to members. It is distinct from retained earnings and other reserves. A company limited by shares may reduce its share capital without court approval if its directors provide a solvency statement, following the procedure in the Companies Ordinance. The share capital figure on the balance sheet does not change until the company allots new shares or undertakes a capital reduction.