Hong Kong lacks specific stipulated laws governing the offshore formation of companies. It is known for being a great location when setting up offshore companies because it has low tax rates, economic stability, political stability, easy to set up offshore companies and absence of foreign exchange controls among other benefits and advantages. It is very rewarding to the business owner if they set up an offshore company in Hong-Kong. I am the best avenue to conduct company set up in Hong Kong activities, investment activities, international trade, and the best opportunity for protection of assets.
Treat this as a guide to starting corporations in Hong Kong and an address to issues related to the same venture concerning options for registering offshore companies, the Hong Kong requirements for the formation of offshore companies and the procedure a well as timelines.
Hong Kong Benefits Of Offshore Company Incorporations
The advantages of setting an offshore company in Hong Kong include:
Ease Of Offshore Company Setup
Hong Kong provides a favorable environment to start and run a company. It is even high up in ranks as one of the easiest places to conduct business worldwide. The ease company set up in Hong Kong starts from the very beginning. It is free from long procedures and steps of bureaucracy. In addition to these, Hong Kong has a favorable foreign ownership policy. The policy allows that the shares of a company be 100% foreign-owned. Before setting up your Hong-Kong company, you will not have to acquire specific authorization from the government and authorities, and this quickens the process.
The taxes in Hong-Kong are considerably low compared with taxes from other parts of the world. The tax system favors business owners and offshore companies. The corporate income tax rate in Hong Kong is 16.5%, and there are no taxes on capital gains. The absence of capital gains tax is just one of the many advantages of having a company in Hong Kong. There is no estate duty, VAT/GST and no taxes on dividends and interests accrued t the company. The income from foreign sources is exempted from tax, and in Hong Kong, there are no foreign exchange controls. A Hong Kong company getting income from overseas is not legible to pay taxes in Hong Kong, which is so advantageous to owners of such companies.
A business is only sure to grow peacefully and get to its highest potential if the environment it is working within internally and externally is stable. A stable political environment contributes to a favorable climate for running a business. Hong Kong is an Administrative Region of China, and it is stable both politically and economically. Hong Kong is guided by rules and laws that maintain the level of order it experiences. Hong Kong is the second-best bureaucracy in Asia according to a recent survey.
Many people who want to start offshore companies consider doing it in Hong Kong. It has the image of being a tax haven, but this is not the case. There are taxes to pay, but they are few and easy to go about for most people. Hong Kong is among the jurisdictions that commit themselves to international standards of tax information and exchange.
Registering a New Hong Kong Company
If you have a specific name for your company, you can incorporate it as a private limited liability company. The registration for companies in Hong Kong is easy, and you will complete the process in a very short time, even a week. As soon as you are done with your company set up in Hong Kong, the following are some formalities you must comply with:
File Documents With The Companies Registry
Within the first 14 days of incorporation, you need to submit documents such as Appointment Notification of directors and secretary, consent to act as a director and registered address notification among others to the Companies Registry.
Open a Corporate Bank Account
Several banks you can choose to work with are available in Hong Kong. Open a corporate bank account with the bank of your choice. Most of these banks will need you to avail yourself physically when opening the account.
Register with Inland Revenue Department
Registering with the Inland Revenue Department is usually within one month of Hong Kong incorporation. For you to obtain a Business Registration Certificate, you have to register.
Apply for Business License
Applying for a license is part of the process of setting up your business because you cannot operate without one. If your Hong Kong business requires a license to operate, ensure that you obtain one, before starting business activities.
In conclusion, as opposed o doing all the above on your own, it is popular for company owners in Hong Kong to hire professional services from firms to incorporate. The firm as the task of collecting all the necessary documents from you and then deliver them to obtain your offshore company name as well as the approval. The firm also does the filing of documents at the company’s registry, and they register with the Inland Revenue Authority.