Hong Kong Company Formation Services
Company formation in Hong Kong is considered an easy process by many foreigners coming to establish an offshore company in the territory. There are several advantages of company formation in Hong Kong, aside from the absence of local taxes and documentation requirements. A high degree of personal freedom comes with company formation in Hong Kong due to its highly efficient administrative system. Another advantage of company formation in Hong Kong is that the paperwork involved is reasonably straightforward.
There are four basic kinds of business organizations in Hong Kong: sole proprietorship, limited liability business, partnership, and international company. Among these four basic kinds, the personal, limited liability company is the simplest form of Hong Kong company formation services. Its procedure is simply by submitting the following documents to the Companies Registry Department: a letter of authorization from the applicant, the company name, its address, and the minimum number of members present and signing the register’s documents. The Company Registration fees apply. The company name must be chosen from the list of characters that are pre-approved for company registration.
Forming a Limited Liability Company is usually simple. It involves filling out the company incorporation forms and submitting the relevant information required by the Companies Registry. The Companies Registry requires certain information such as the owner’s full name, the shareholder’s date of birth, the contact details, and the owner’s business address. One fax copy of the company registration documents is enough for the Company Registry to complete the verification process. After checking the details, the Registry will decide on the registration fee.
Forming a Hong Kong SOHO or Limited Liability Company is a more complicated procedure but is less costly. Before company incorporation, a candidate must submit a document called the Articles of Association submitted to the Companies Registry. The Companies Registry will then decide on the registration fees based on the document contents and other relevant requirements.
Hong Kong company formation benefits are many, but these benefits are related to the necessary procedures only. A candidate will be able to select from the list of available companies. He/she will be able to choose the company structure that suits his/her business requirements. An offshore corporation formation service provider will provide all these facilities and more. It is easier to set up an offshore company because it is easier and less expensive.
Other benefits Hong Kong corporations exemption from paying the income tax. An offshore company formation service provider will help the process be done very smoothly by giving valuable advice on paying the income tax. The formation process is much faster because the secretary has already chosen the nominee for the company. The process can also be completed within a few days. The nominee for the offshore corporation will have a password and secret directory provided by the secretary.
A typical offshore corporation in Hong Kong may have its benefits, but it is also subjected to taxation at the federal tax rate. An offshore company can be formed at any tax rate and any location provided by the secretary. There are no restrictions on the size of the corporation or any financial institution conducting business with it. The IRS can easily access an offshore corporation through its Internet access facility. It is cheaper to establish an offshore corporation compared to most other methods.
Besides the legal formalities, there are other things to look for before making a choice. The company’s general manager should choose the nominee, and members must confirm the selection. The nominee can be anyone as long as it is not a disqualified person. However, the nominee should meet the minimum capital requirement and not be a non-residential resident of Hong Kong. Otherwise, if the nominee is a Hong Kong resident, it must meet the income tax requirement, and it is a mandatory requirement for the nominee to pay the income tax rate.
Hong Kong company formation services