Officially regarded as the Hong Kong Special Administrative Region of the People’s Republic of China, the region of Hong Kong is one of the suitable grounds when it comes to business incorporation. Located on the south-eastern part of China, the field allows foreign investors to come forward and invest in the offshore company. Hong Kong offers a stable business environment with no restrictions and high business scope for offshore companies. This guide will outline the core reasons that provoke business investors to start an offshore company in Hong Kong. Let’s begin.
1.Easy Company Incorporation Process
Recognized and ranked as one of the best business incorporation grounds, Hong Kong provides the flexibility to investors to set up an offshore company in a hassle-free and straightforward process. While proceeding towards offshore company registration in Hong Kong, the business owners need to pay the provisions of company secretary and registered office address. The offshore company can be established either by registering a new company, or even by purchasing a shelf company. Here’s more about how to incorporate an offshore company in Hong Kong.
The entire company set up process can be completed within 7-10 working days. Another plus point is that the region of Hong Kong also imparts the flexibility of 100% foreign ownership, and doesn’t have any individual government authorizations for the same.
At a global level, the Hong Kong taxes are considered among the lowest. The region is free from Capital gain tax, GST, VAT, Estate Duty, Withholding tax. When it comes to corporate tax, a charge of 8.25% gets implied on business entities holding a profit up to 2,000,000 HKD, and 16.5% to for entities earning above 2,000,000 HKD.
If any individual is involved in foreign-sourced incomes, it is exempted from tax. Also, Hong Kong holds more than thirty-six DTAs, which allows the business owners to carry out business activities in 36 countries with tax-exemption on import-export processes. In short, we can say that offshore company registration in Hong Kong is one of the wisest decisions that a business investor can proceed with.
3.Politically Stabilized Environment
In the corporate world, there exists a direct relationship between the political stability of a region and business incorporation. Hong Kong, although being a Special Administrative Region of China, has got a significant impact of the nation’s political, economic and judicial systems. According to the Political and Economic Risk Consultancy (PERC), the law of Hong Kong stands as the second-best bureaucracy in the region of Asia, which is a profitable point for business owners looking seeking business incorporations in the region.
When it comes to the international level, Hong Kong is recognized as one of the trusted jurisdictions, which has been endorsed by OECD. Thus, starting a Hong Kong offshore company holds a positive outlook.
5.Minimal Administrative Tasks
When it comes to legal and administrative obligations, the company incorporation process in Hong Kong requires minimal tasks. A Hong Kong offshore company can be established with the presence of minimum one director and one shareholder and no paid-up capital requirement.
6.Access to China
By setting up an offshore company in the region of Hong Kong, the business investors will have easy access to Mainland China and can conduct relevant business activities. China is regarded as the world’s largest and busiest industrial region. This is another profitable move that one can avail in the long run by incorporating a company in Hong Kong.
We can conclude that forming an offshore company in Hong Kong will allow the business entities to conduct business transactions cost-effectively and manage the business funds in a better way. Most of the business owners prefer to carry out the incorporation process without even visiting Hong Kong with the help of business experts. This turns out to be a feasible option as the activities get carried out at a faster-pace.
Benefits of Availing Professional Services
By joining hands with professional experts to form an offshore company, business professionals can grab the following benefits:
- Business processes are handled in a professional way
- The tasks are carried out at a speedy rate
- Experts provide quick solutions to solve relevant errors
- Market information can be known better
Business Setup Worldwide is one of the top business consultants at a global level, where we understand your business needs and provide effective incorporation solutions accordingly. Since inception, we have been helping numerous clients in setting up their business in multiple locations. Our business experts are well-versed with the offshore company incorporation process in Hong Kong and can provide tailored solutions. In case you hold any query, feel free to ask the same to our advisors. Contact us today-we’d be glad to assist.