There are many benefits to company formation in Hong Kong. It is the most preferred option for entrepreneurs who wish to establish an offshore company. There are also many reasons why entrepreneurs choose to set up an offshore company in Hong Kong. It is not uncommon to find people who decide to set up an offshore company in Hong Kong as an investment option, especially during an economic downturn. However, it may be difficult for foreigners to understand why it is vital to set up a Hong Kong company.
First and foremost, setup offshore company in Hong Kong is simple. Companies can be registered either with the Companies Registry or through the Companies House. Besides, a company can be established on the date it is written. For instance, a foreign company can be based on 1 July 1996. Similarly, most offshore company formation in Hong Kong follows the standard Companies House rules.
There are two types of company formation in Hong Kong. One is the ‘Special’ company, and the other is the sole proprietorship company. A Special company is an entirely legal body. It is established by the companies or by the nominee of the companies. The nominee need not be a resident of Hong Kong. He must, however, have all the requisites to register the company: valid banking credentials, a permanent address, and an annual turnover of not less than five thousand pounds.
Company formation in Hong Kong is quite simple. Companies are quickly registered with the Companies House, and they have to pay a nominal administrative charge. The company will receive a letter from the Companies House, which will confirm that the company is valid and that its Articles of Association are accurate and complete. After this, the company will be able to issue trade papers and continue to do so until the next annual meeting. At that time, it is expected that the company will come up for registration.
There are two fundamental reasons why companies wish to set up an offshore company in Hong Kong. The first reason is to avail of tax benefits. The second reason is to avoid capital gains tax (CGT) by registering the company at an overseas branch. However, company registration in Hong Kong is usually compulsory. It means that the company will have to pay a registration fee and submit documents and information regarding its capital, business premises, and employees.
There are various advantages that an individual can enjoy by setting up an offshore company in Hong Kong. The first advantage is that it can help an individual control his funds, especially during emergencies and during those times when he may not come back to his own country. A company offshore is also beneficial for business people who want to protect their money from being frozen by the IRS (Internal Revenue Service of the United States). A company formation process can also help you get a tax advantage if your country’s authorities subsidize your business or your assets are exempt from local taxation. It is because tax payments are based on your income and your deductions and credits.
To establish an offshore company in Hong Kong, you need to follow the rules and regulations that are stipulated by the Hong Kong authorities. It would help if you appointed an office authorized to deal with company registration and corporate affairs. It would help if you also chose an office staffed with professionals who know how to deal with company administration and other company registration issues. Various organizations can help you with these matters. Make sure to choose one that has years of experience and has good references.
Another advantage that you can enjoy by having an offshore company is that it can protect your funds from the jurisdiction where you have registered the company. Therefore, you don’t have to worry about your money going astray. However, it is essential to note that some disadvantages are associated with company formation and offshore business schemes. You may not be able to transfer money to another person or another entity effectively. You must also pay some income tax to the jurisdiction you have set up your company in.
setup offshore company in Hong Kong