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A Hong Kong Offshore Company is One of the Best Ventures You Can Establish
Hong Kong has always been among the most popular jurisdictions for entrepreneurs for offshore company registration. Among the reasons for the popularity of Hong Kong offshore company registration include the benefit of having no foreign exchange controls, its low tax regime, its economic and political stability and more importantly, how easy it is to incorporate an offshore company in Hong Kong.
Why Choose Hong Kong Offshore Company Registration?
A Hong Kong offshore company is the perfect solution for a company who is seeking a medium to conduct its offshore banking activities, protect its assets, be involved in international trade and for investment activities.
On top of that, Hong Kong offshore company formation brings several benefits to the investor who chooses this option as an entity. These benefits include:
Lowest Tax Rates in the World
With a corporate tax rate of 16.5%, Hong Kong has among the lowest tax rates in the world. There is also the absence of capital gains taxes, no GST or VAT, no withholding taxes on dividends and interest, and no estate duty taxes to contend with either.
Reputable Country
There is a common misconception about Hong Kong being as an offshore tax haven, and the country has received a lot of criticism as a result of this. In reality, however, Hong Kong is a low tax jurisdiction, not a tax haven. It’s status as a low tax jurisdiction has even been endorsed by the OECD, and because of that, the country is not negatively viewed with suspicion.
The Easy Company Formation Process
Hong Kong’s ranking as among the easiest places in the world to do business is because of how simple and easy it is to incorporate a company in Hong Kong. Registering an offshore company in Hong Kong is easy because there is no unnecessary red-tape procedures or bureaucracy to contend with. The country also has a favourable foreign ownership policy, where foreigners can own 100% of the companies that they set up.
The Political Stability of the Country
Hong Kong’s political stability has contributed significantly to its status as an ideal investment hub. Hong Kong still retains its economic, judicial and political systems, despite being part of a Special Administrative Region of China. The country’s bureaucracy system comes in second-best in Asia, according to the Political and Economic Risk Consultancy (PERC) report.
How to Register an Offshore Company in Hong Kong
There are two available options for registering an offshore company in Hong Kong:
- To register a new company
- To purchase a Hong Kong shelf company
For a successful offshore company registration in Hong Kong, you must complete the following requirements:
- Approved Company Name – Your proposed business name must be approved by the Hong Kong Companies Registry.
- Company Directors – You must have a minimum of one company director, although you may have an unlimited number of directors. Directors can be a natural person, a Hong Kong resident or any nationality. Nominee directors are also fine.
- Company Shareholders – You must have a minimum of one shareholder. The maximum number of shareholders is 50. Your shareholders can be a natural person, Hong Kong residents or any nationality, and nominee shareholders are OK. A sole director may also act as a shareholder, and 100% local or foreign shareholding is fine.
- Company Secretaries – You must appoint a Company Secretary for your offshore company in Hong Kong. This individual must be a local resident of Hong Kong. Professional qualifications are not a necessity. However, a sole director or shareholder cannot be a Company Secretary.
- Business Address – This must be a local physical address.
- Share Capital – No bearer shares are permissible in Hong Kong. Although your share capital can be any amount, you must direct it into the company’s bank account.
- Tax System – Taxes in Hong Kong are only imposed on income which is “derived from or arise” in Hong Kong.
All companies in Hong Kong must adhere to the ongoing compliance requirements which are expected from all companies incorporated in the country.
The Process of Offshore Company Registration in Hong Kong
Registration of an offshore company in Hong Kong involves only two, very distinct steps:
- Getting approval for your Hong Kong company name
- Submitting the necessary documents required for business incorporation
That’s all that you need. It is indeed simple and straightforward. The application process generally takes anywhere between 4-7 working days from the time you have submitted the documents.
The Hong Kong offshore company incorporation documents that you will need to submit include:
- Application form for incorporation
- Offshore company Articles
- Copy of your passport
- A copy of the Hong Kong identity card for residents who are going to be the directors and shareholders of the company
- Copy of parent company registration documents for the corporate shareholders
- Proof of residential address overseas
- Bank reference letter for non-resident directors and shareholders
Once you have completed your Hong Kong offshore company registration and incorporation, you must comply with the following:
- File your incorporation documents with the Hong Kong Companies Registry within 14 days.
- Set up your corporate bank account in Hong Kong.
- Register with the Inland Revenue Department of Hong Kong and obtain a Business Registration Certificate.
- Apply for any required business licenses that you may need before you commence your business operations in Hong Kong.
Get Your Offshore Company Registration in Hong Kong Going with 3E Accounting
The quickest way to set up your offshore company in Hong Kong is through the services of a professional firm like 3E Accounting. This is because we have the knowledge, experience and expertise needed to guide you through the process to make it hassle-free and easy. For more information about offshore company registration in Hong Kong, visit our website. You can also contact us if you want.
