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.

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