Why You Should Own Your Hong Kong Offshore Company

There are many reasons why many entrepreneurs decide to set up shop in this City. Hong Kong offshore company registration provides tax-free opportunities similar to other offshore locations like the British Virgin Islands, Anguilla etc. This tax-free haven is also enjoyed by foreigners who own HK companies that run no business operations on the Island 開公司費用.

Business Registration Number in Hong Kong: Definition, Examples

The company registration requirements offered here are relatively loose compared to other locations. This makes it the ideal location for many individuals seeking opportunities to form shell companies. It costs about HK $10,000 to set up a new company.

It can be dangerous to deal with shell or offshore companies in this jurisdiction. They usually lack a physical presence in the city. No problem can be remedied on the island in case a dispute arises from any transaction. When conducting business in China, there can be no protection because you’d be considered to be transacting business with a company in Hong Kong.

Many companies choose to open bank accounts in small foreign banks. This is because banks that are state-run like Bank of China, Agricultural Bank of China and Construction Bank of China are very strict when it comes to opening company accounts. Having a company account in these state-run banks on the mainland makes it safer for you in case you need to pursue your rights on the mainland.

Another advantage of opening a Hong Kong offshore company is the presence of major international banks. These banks have a wide international network of branches. Such major banks are trusted by many business operators. Entrepreneurs can get the necessary assistance required to open accounts with these banks.

There is no exchange control in Hong Kong. The banks do not charge any withholding fee once funds have been deposited with them. It is easy to deposit, withdraw or transfer funds. The Island’s banks operate without taxes or any other fees.

Banks in this location can only disclose a customer’s information with prior consent from the customer. This law may not apply to customers suspected to be involved in criminal activities including money laundering.

• The English legal system used in this offshore location is very well established.

• There are many genuine trading activities in this city. This is very advantageous for any company with HK correspondence. This does not apply to companies without such correspondence.

• The Hong Kong Inland Revenue Department is prohibited from disclosing customer information to any third parties including overseas or local governments. Suspected tax evaders in this Island City are not protected by this law. However, this law does not apply to tax evaders from other countries.

Summary

The procedures pertaining to Hong Kong offshore company formation are simple. Your personal presence on the Island is usually unnecessary. Many international trade centers usually offer a tax haven. Your company benefits from a well established legal system. No exchange controls exist and the tax rate is low.

Foreigners with companies that do not run business operations in this City can enjoy their offshore profits intact. Such entities may only use local offices as their main registered address. Many companies in China owned by foreigners have Hong Kong holding companies. This gives them access to credit facilities. The lack of foreign exchange control is simply mouth-watering for these companies.

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