Hong Kong, officially regarded as the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR), is a particular administrative region located in southern China. The area has established itself as a free-market economy that allows global investors to come forward to set up their business in Hong Kong.
Now, when it comes to business incorporation in Hong Kong, an offshore company is one of the preferable options as the region is characterized by low taxation, free port trade, and a well-established financial market. This guide will help you to understand the complete scenario of offshore company formation in Hong Kong. Let’s start by understanding the very basics.
What is an Offshore Company?
An offshore company is a legal business entity that is formed outside the region where the parent company is formed, and carry out the business operations only outside the country of its origin. It is one of the preferable options when it comes to business expansion, and is also regarded as the non-resident company.
Features of an Offshore Company
Some of the characteristics of an offshore company are highlighted below:
- Can be incorporated with the presence of one shareholder and one director
- Holds Financial, Legal and Taxation benefits
- Can be incorporated at a faster pace
Gaining information on how to start an offshore company is essential for your asset protection.
Why Choose Hong Kong as an Offshore Destination?
- One of the core reasons for choosing Hong Kong as the perfect offshore destination is the Commercial Law that is based on the English System and charges a low corporate tax of around 16.5%
- The region of Hong Kong has got more than thirty-six Double Taxation Treaty Agreement (DTTA) that allows the investors to conduct business transactions across 36 countries without involving an import or export tax
- Serves to be a perfect ground to enter the Chinese market
- Hong Kong has been a favourable option that focuses on Foreign Direct Investment. Few details of Hong Kong FDI is stated below:
- FDI inward flow for 2016: 117,387 million USD
- FDI inward flow for 2017: 110,658 million USD
- FDI inward flow for 2018: 115,662 million USD
A detailed study: Why start an Offshore company in Hong Kong
Types of Offshore Company Formation in Hong Kong
You can open an offshore company in Hong Kong in the following ways:
1.Registering a New Offshore Company
Registering a new offshore in Hong Kong gives the flexibility to start a business with a specific name. A Private Limited Liability Company (LLC) is one of the most common structures chosen by business owners. To know more: How to register a new offshore company in Hong Kong.
2.Buying a Shelf Company
To wipe out the registration and legal proceedings, and to start an offshore business at the earliest, purchasing a shelf company is the feasible option. The only task required to buy a shelf company is to present the relevant set of documents.
Offshore Bank in Hong Kong
To deal with the offshore business activities, holding a bank account is extremely important. It is advised to proceed ahead with the offshore bank account process at the time of company formation itself. All about how to start an Offshore Bank account
What is an Offshore Bank Account?
An offshore bank account is regulated under the International Banking License, which provides greater privacy and doesn’t get involved in any of the business transactions with the jurisdiction of company establishment.
Benefits of an Offshore Bank Account
An offshore bank account is a mandate to conduct business activities at ease. Some of the benefits that the investors can avail are stated below:
- Protection of assets
- Convenient access to funds
- Save tax on deposits, savings, and relevant investments
- Access international investment opportunities
- Foreign exchange benefits
- Superior lending and credit facilities
There are many advantages to opening an offshore bank account.
It turns out to be perfect if the company formation processes get completed in a hassle-free way. To carry out the proceedings in a smooth manner, most of the business investors prefer to outsource the incorporation process to experts, so that they can focus on building and implementing relevant strategies.
Why to Avail Professional Experts?
Business experts play a significant role by contributing towards the business incorporation process, and availing the expert services will help you in the following ways:
- Speedy and error-free setup process
- Time Saver
- Less Burden
- Better utilization of available resources
- Grab more market insights
To know more about how a business consultant can help investors to start an offshore company in Hong Kong, click here.
Since its inception, Business Setup Worldwide has been guiding numerous clients to establish their business roots in different parts of the world. We stand as one of the best business consultants who has been aiming to provide hassle-free business incorporation proceedings. With a team of experts, we provide tailored solutions suiting to our clients suiting their business needs accordingly. To start your offshore company in Hong Kong, contact us today-we’d be glad to assist.