I believe that many people do not understand the merger of Hong Kong companies. In fact, the same group under the 100% shareholding of two Hong Kong companies can be merged with one.

Merger can be divided into vertical merger and horizontal merger. A vertical merger means that a company and one or more of its wholly owned subsidiaries may merge and continue to exist as one company. Horizontal merger refers to a body corporate2Occasionally more than2The wholly owned subsidiaries of the two companies may be merged and continue to exist as one company.

For example, a vertical merger is when a superior company merges with a subordinate company, while a horizontal merger is when two companies at the same level merge. Incorporation of companies is requiredNAMA1-5The form is submitted to the Companies Registry.

So what are the benefits of merging these Hong Kong companies? For some idle Hong Kong companies, it is easier to manage, easier to manage and cheaper.

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