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.

Expand Your Business with Company Incorporation in China

Foreign investment walks in companionship with China's accord to finally welcome and shake hands with the foreign economy specifically the West.

China is a swiftly flourishing and a viable economy, and unobtrusively the largest economy on the world. Although it serves as a great base for expanding business, the chances of boom without adequate basic data and expertise is definitely considered less. However, this does not make China any less alluring. It has an ideal market of 1.5 billion people and a civilization that has adopted the ethics of western business.

Expanding businesses in china is not very difficult. It rather has a welcoming economic environment which wholeheartedly welcomes foreign companies. The easiest way to commence business in China is to start up with a representative office. The funds required to set this will depend on the city and province of registration.

A wholly owned foreign organization has total foreign investment and it is set up as a limited liability company and represents a separate legal entity. However, it will be taxed according to local legislation. Joint ventures are highly encouraged in China so that the country can learn new technology, skills and expertise.

How to Register a Trademark in China

Registering a trade mark enables companies to protect its brands and prevents other organizations from using identical logo or symbol to mislead consumers. It does take a good amount time and strife to incorporate a trademark in China; nevertheless it would be good to do so to ditch issues if any, in the coming years. Entering into business with China without registration will leave the brand unprotected and open to an unseen risk.

Why is it vital to incorporate a trademark in China?

If there is a good trade opportunities available in China, and the company aims to excel in the market for a good period of time then it’s imperative that the trademark is incorporated right from the commencement of the business. China-is-a-first-to-file state, which means early birds, will get quick registration.

How do I register my trademark in China?

Company, which is not based in China, has to take the help from a lawyer to get the trademark incorporated. The expense of incorporating one product line is $500. A regular incorporation process will take about 18 months.

General guidelines

·         Do have a Chinese version of your trademark.

·         The trademark chosen should be powerful and appealing.

·         Do register your trademark to stay safe and well protected.

Make sure that your trademark is unique and different, bearing no similarities with an existing trademark.

Offshore Company in Hong Kong – An Overview

Hong Kong is one of the major transnational centers. There is no “Offshore” legislation in Hong Kong. However, companies registered with British Virgin Islands (BVI) enjoys tax free status under certain circumstance this makes the companies similar to offshore companies. If the company is registered with BVI, do not make any business in Hong Kong then they are not liable to pay tax.

A Hong Kong based company can set up an office here as a cost center and pay no taxes to the government. For example, an outside company can set up it’s operational center in Hong Kong, and pay no tax, as long as it makes no income. If the company makes no business, then it is not liable to file any financial documents except a “No Business in HK” declaration form.

Hong Kong companies are at a benefit because there are not professed as “Tax Heavens”, the political conditions are stable, finance and banking is excellent, and there are no exchange controls. Apart from this, a Hong Kong based company can do business in any part of the world, and it’s not important that the Directors and Stakeholders are residents of Hong Kong.

However, they have to be in government’s list and privacy is provided by Maritime International Ltd. Apart from this, it’s important that the company needs to have a secretary who is a resident of Hong Kong.

Introduction to Copyright and Patent Registration in China

According to the laws of China, intellectual rights, patents and trademarks are very critical and should be protected. It does not matter whether the company has its base in China or not, it can go for copyright registration in China. If the company is not based there, then a lawyer or an agent will be needed for this task. Note that the agents should be appointed by the state council. Companies which belong to some other country but have their presence in China can apply directly. It can take up to eighteen months for getting a trademark registered.

The process is a first to file process, which literally means that the first party who is applying for the trademarks will get the rights. The trademark can also be cancelled if it is not used for 3 years in a row.

China trademark registration also follows a similar procedure. The laws of copyright apply to oral, written, or art creations as well. It does not matter whether the work is published or not, a copyright can still be taken. There are a set of documents that has to be submitted like the application form, sample of work, pledge letter, identity proof, power of attorney etc.