Setting Up an Offshore Company in Hong Kong – Fast Company Formation Requirements
There are many advantages of the company set up in Hong Kong. Companies can operate in the most dynamic corporate arena and enjoy the world’s most competitive tax regime. The company headquarters and operations can enjoy the benefits of central business administration, standard commercial license, and recognizing entity structure. It is a hassle-free process that is fast-paced and has a meagre start-up cost. The company set up in Hong Kong can be of various types such as limited liability company, partnership, limited partnership, corporation, and the same can be transferred to other countries by giving the necessary legal documents.
Several reasons make the company setup in Hong Kong more attractive than others. The first advantage is the lower personal income tax rate of Hong Kong. As it is a closed economy, the individual income tax rate is less than that applied in China’s mainland. It effectively translates into a higher corporate tax rate as well.
Hong Kong also has a very complex tax system. There are three taxation systems in Hong Kong: the income tax system, the local tax system, and the foreign system. The income tax system is regressive and is imposed on only those earning less than a certain amount. This system has minimal exemptions and is levied based on assessable profits.
The second advantage is that it is easier to set up an offshore company in Hong Kong than in any other country. The company formation process in Hong Kong is free. Besides, there are no restrictions on the ownership or transfer of company registration. There are even no capital gains tax or any other taxes required to be paid when you transfer company registration. All these advantages make the company formation process more straightforward and easier in Hong Kong.
Thirdly, it is a lot easier to incorporate a company in Hong Kong than in any other country. A company must have a registered office in Hong Kong, which can be done at any financial institution. A company also needs to have a director and a secretary. These are not mandatory for any company formation in Hong Kong.
Fourthly, it is easy to transfer money from one place to another if it has a high-value asset such as a property. For instance, if you want to pay for a property in China, all you need to do is provide your credit card details to the authorized credit card payment processor and then pay through your card. Suppose you wish to become a company resident in Hong Kong. In that case, the only thing you have to do is provide your bank details to the company secretary, who will then forward the payment to the property owner of the asset you are purchasing.
Fifthly, it is easier to set up an offshore company in Hong Kong than in any other country. In Hong Kong, there is only one requirement for establishing an offshore company: that the company must be registered under the Companies Regulations of Hong Kong. Besides, the company must have at least one director and at least one shareholder. Neither of these requirements is mandatory for any offshore company, so they do not complicate company formation in Hong Kong.
Lastly, Hong Kong offers a lot of incentives for setting up an offshore company. First, there are no capital taxes required to be paid to register a company in Hong Kong. Also, the Companies Registry does not include a company formation fee. Thus, it is more conducive to set up an offshore company in Hong Kong than in any other country.
company setup in Hong Kong