What are the possible ways to account for Investment made by investor without issuing shares?

Oct 4, 2021
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Hong Kong
A private limited company in Hong Kong with 2 shareholders has a new investor who is going to invest in the company. The company does not want to allocate shares at the moment due to some banking reasons but would be sharing the profit with the investor if the company makes any profit. After a year the company would allocate shares of the subsidiary company once it's been set up to that investor.

One of the options, I was thinking of was to allocate the fund from the investor as a loan and after a year we could convert that loan into share capital. (Is this option feasible?) Apart from this method, any other method we could try?

For your information: According to section 170 of the new Company Ordinance in Hong Kong, a company may increase its share capital without issuing new shares.


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