Hong Kong Offshore Company Setup Advantages

The most common advantages for setting up an offshore company in Hong Kong are:

·         Ease of offshore company setup: Hong Kong is one of the most liberal places to do business in the world. Setting up a company in Hong Kong is effortless and easy, which is far away from unnecessary bureaucracy or red-tape. Apart from this, Hong Kong favors 100% foreign ownership policy.

                                       

·         Tax benefits: Hong Kong tax structure is pretty liberal. The tax system is effortless and in favor offshore company setup. The income tax rate for corporate is 16.5%. Furthermore, there is no capital gain tax, no estate duty, no VAT/GST, and no withholding tax on dividends or interest. Apart from this, foreign sourced income is exempt from tax in Hong Kong, and there are no foreign exchange controls in Hong Kong. This is one the biggest advantages to Hong Kong based companies.

·         Political stability: The rule of law takes the first place in Hong Kong, and it is known as the second best bureaucracy in Asia. With good political structure, the companies can also function in a peaceful environment.

·     Trusted Image: Hong Kong is a low tax jurisdiction. This view has also been supported by the OECD. Hong Kong has committed itself to the international standard on tax information and exchange. Hence, an offshore company in Hong Kong is not viewed with suspicion.

For better understanding of the laws and rules pertaining to Hong Kong companies, log in and find advice from the experts to avoid future complications.

Preparing for Incorporating a Company in Hong Kong

The first step while preparing for Hong Kong company registration is to contact an incorporation service agency which is based in Hong Kong itself. This is a compulsion by the recent laws framed, where foreigners cannot register their companies by themselves. They need to hire the services of a local agency that will represent the foreign company. The incorporation service provider will help the foreign business owner to fulfill all requirements necessary for company registration.

Company formation HK need to certain documents during registration. This includes

·        Memorandum and Articles of Association (MAA)

·     Particulars of the company’s shareholder and director and proof of a registered business address in Hong Kong. 

·      The MAA can be obtained from the incorporation service agency where many standard MAA documents available.

·    For directors and shareholders particulars, companies can give utility bills; government recognized document, or passport copies that show proof of identity and address.

·     Incorporation agency can also arrange for the proof of registered business concern if required. However, if the foreign owner has already narrowed down on a business address in Hong Kong, he can use this address if they wish.

        

By filing the above documents and meeting the structural rules, foreign owners can conveniently start a business in Hong Kong. Immediately after the certificate of incorporation has been received, the foreign owner should visit the Inland Revenue Department in Hong Kong and get a business registration certificate. This marks the completion of the entire company incorporation procedure. The owner now has to open a corporate bank account and apply for business licenses if required.