Hong Kong is said to be one of the most liberal economies in the world. Even though Hong Kong does not have any specific law that governs offshore company incorporation, it is one of the most common jurisdictions for starting an offshore business owing to its law regime, absence of foreign exchange controls, political and economic constancy, and ease of company setup and so on. Establishing an offshore business in Hong Kong is the perfect vehicle for conducting offshore banking activities, international trade, investment activities, and for protection of assets.
Before moving further, let us understand why it is beneficial for a business person to start an offshore company in Hong Kong.
Benefits of Business Setup in Hong Kong
The most common of all are mentioned here.
- Tax Benefits – The taxes in Hong Kong are among the lowest in the world. The tax system is simple and favours offshore business formation. The corporate income tax rate in this country is 16.5%. There is no tax on VAT/GST, capital gains, estate duty, and withholding tax on dividends or interest.
- Political Stability – There exists a direct relationship between political stability and the investment climate. Even though Hong Kong is a Special Administrative Region of China, it retains its political, economic, and judicial systems.
- Good Will - Hong Kong is often criticised as being an offshore tax jurisdiction. In reality, it is not a tax haven but only a low tax jurisdiction. The OECD has also endorsed this view. Hong Kong is also one of the jurisdictions that have committed itself to the global standard on tax information and exchange. As a result, an offshore business in Hong Kong is not observed negatively or with suspicion.
Features of a Hong Kong Offshore Company
- Minimum one director is needed
- Directors can be natural persons or companies
- Minimum one and maximum of 50 shareholders required
- Appointing a company secretary is necessary
- A resident physical address that is not a PO Box is necessary as the registered address of the Hong Kong company
- No bearer shares are allowed
- The projected name of your Hong Kong offshore business must be approved by the Hong Kong Companies Registry, before Hong Kong Incorporation
How can Business Setup Worldwide Help you with Offshore Business Setup in Hong Kong?
Business Setup Worldwide is a leading business setup consultant for starting your company in offshore jurisdictions. We help you start a business in a hassle-free and straightforward manner. Our process includes five simple steps, which are as follows –
1.Fill an Application Form
Our specialists will assist you in every step, right from suggesting a trading name for your business by registering the same. It includes helping you choose a company name which is not similar to the name of an existing company in Hong Kong. We will also provide you with options of availing other services like a business license, nominee director, virtual office, IP services etc.
2.Upload the Documents
Here, an application form for registering the business will be filled. You will get the confirmation mail, with a unique client ID, and a request to upload your ID and invoice. The personal identification documents will include –
- Copy of passport or individual ID
- Address proof (utility bill, bank statement, own address etc.)
- Recent bank statement or reference letter
- A business plan
- Curriculum Vitae
3.Register a Business
Once you submit the necessary documents as mentioned above, a fee receipt will be generated. After the payment is made, you will be provided with a dedicated account manager. The account manager will be your representative and a point of contact during future processes. The account manager will look after the incorporation process and keep you informed at every step in the process. It includes-
- Recapitulation of your order
- Submission to the registrar
- Registering your business
Once the company is registered, documents containing resolution and consent will be sent to you for signature.
4.Company Kit Dispatch
Now that all the services are processed successfully, you will receive the company kit in the final step. The kit includes soft copies of necessary documents like,
- Certificate of Incorporation
- Business License
- Business registration
- Memorandum and Articles of Association
A resolution relating to the nomination of directors and the distribution of shares.
One more important step can also be added, should you choose to avail any of the mentioned additional services –
- Offshore Bank Account in Hong Kong
- IP Services in Hong Kong
- Accounting and Auditing Services
- Business License
- Nominee Director Services
- Corporate Secretarial Services
Apart from this, we at Business Setup Worldwide offers a full set of services efficiently and at the best price for offshore company registration in Hong Kong. We manage everything from business administration to bank account setup.
Should you decide to start an offshore business in Hong Kong, contact us – we’d be happy to assist you.