Officially regarded as the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR), the region is a particular administration that stands as a separate territory and follows the guiding principle of “one country, two systems.” As a capitalist nation, the region of Hong Kong has been evolving as a popular offshore jurisdiction among global business investors.
The region is one of the favourite destinations when it comes to dealing with multi-currencies. In another context, the area of Hong Kong is a territory that offers low-tax regime that is governed by ‘territorial principle,’ and is an ideal place for the business investors who are looking forward to starting or invest a holding company
One of the core benefits of setting up an offshore company in Hong Kong is not limited to the low-tax regime but with the flexibility of generating profits from within the territory. This guide is dedicated to outlining the complete structure regarding the offshore company setup process that an investor should be aware of.
An Outline: Hong Kong Offshore Company Essentials
An offshore company in Hong Kong needs to hold the following pre-requisites before proceeding towards the company formation process.
- Company Secretary
- Registered Address
- Share Capital
How to Start an Offshore Company Registration in Hong Kong?
When it comes to Hong Kong, the region provides the flexibility to the business owners to proceed ahead with two types of the company incorporation process, which includes:
- Registering a New Company
- Proceeding/ Purchasing with a Shelf Company
However, the general procedure that relates to the registration is highlighted below:
1.Selection of the Company Name and Approval
The company name selection is a crucial task as it will be holding the brand name at a later date. At the same time, the business owner must select the company name wisely, preferably by discussing it with business experts, as they are well-versed with the relevant trade name guidelines. The chosen company name needs to be registered and approved by Hong Kong Company Registry before Hong Kong incorporation.
2.Be Handy with the Essential Documents and Submission
It is to be noted that the company owner needs to be handy with the respective documents that need to be submitted to the registry for further approval. The list of the essentials are:
- Hong Kong company application form
- Drafted Articles of Association (AOA)
- Copy of passport and visa of the business owners
- Residential proof
- Copy of business plan
The company documents need to be submitted within 14 days that will further proceed towards verification.
3.Registration with the Inland Revenue Department
The next process is to obtain the Business registration Certificate that will be issued by the Inland Revenue Department. This procedure needs to be completed within one month of receiving the Hong Kong Incorporation certificate.
4.Proceeding ahead with an Offshore Bank Account
The next step after the submission of the documents is moving towards the opening of an offshore bank account in Hong Kong. Bank account opening process is signed by the authorized signatories, as per the Board Resolution, and the following documents are to be submitted accordingly:
- An extract of a board resolution that highlights the opening of a bank account
- Certified copy of company’s Certificate of Incorporation, which is issued by the Company Registry
- Certified copy of the Company’s Business Resolution, which is issued by the Inland Revenue Department
- Copy of the company’s Articles of Association (AOA)
- A list of the specimen signatures of authorized signatories
- Proof of business plan
Advantages of Setting up a Hong Kong Offshore Company
Some of the core advantages that drive international investors to start an offshore company in Hong Kong involves:
Recognized as one of the Special Administrative Region of China, Hong Kong holds a politically stabilized environment to provide a world-class economic, judicial and economic background to the business owners, which helps Hong Kong to become one of the top tax-haven jurisdictions.
Hong Kong shares a tax-friendly business environment that allows business owners to become one of the most popular offshore destinations. The foreign-sourced income in Hong Kong is completely exempted from tax. Thus, it serves out to be a profitable destination for business investors who wants to invest in offshore company formation.
3.Easy Company Setup Process
The process of the offshore company set up in Hong Kong turns out to be simple. However, it turns out to be more comfortable if one is aware of the jurisdiction and the stated regulations. This flexibility is one of the primary reasons that global entrepreneurs prefer to proceed with Hong Kong.
Thus, you can see that the offshore company incorporation process turns out to be a feasible solution for business investors. However, before one proceeds towards investing, it is recommended to take the advice of experts. Are you wondering why? Well, your answer is just below.
Why to Avail Professional Services?
Incorporating an offshore company is a natural process, backed by the fact that one understands the process clearly. Most of the time, it becomes difficult for business investors to hold complete knowledge regarding foreign business rules. Having a guide beside helps a business owner in the following ways:
The concept of offshore deals with carrying out the business processes outside the jurisdiction of incorporation. Possessing knowledge on every possible ground might turn out to be way difficult for the business owners. At the same time, this will not only turn out to be troublesome but also time-consuming. Outsourcing the respective processes to business experts helps a business owner to lessen their burden and utilize their available time most productively.
2.Fast Incorporation Process
The process of offshore company formation involves various steps based on different jurisdictions. When it comes to Hong Kong, a set of specific procedures needs to be followed, which might turn out to be difficult for the business owners to proceed alone. On the other hand, approaching an expert turns out an easy way for a hassle-free and fast offshore company setup.
3.Documentation Gets Handled Effectively
Be it an onshore or offshore business establishment, documentation plays a significant role that can’t be avoided. The business experts are well-versed with the relevant business processes and the documents required for company establishment. Upon submitting the company essentials, they can take the necessary steps to gather the approvals from the Governed Authorities.
4.Acts as a Guide
The experts have got a well-defined knowledge related to various industries, and often will be in touch with multiple clients. This helps them to grab a piece of knowledge regarding every sector and can act as a guide. Inputs provided by them are very vital to the business and can help the business owner and the entity to a great extent. To understand in a more precise way as to how experts can help, read our guide on how an offshore consultant can help you.
5.Ease in Bank Account Process
An expert is well-versed with the offshore bank account opening process and can guide you in the initial stage while proceeding towards incorporation. Moving alone might turn out to be a complicated process when it comes to opening an offshore company in Hong Kong. Here’ s a guide on How to Open an Offshore Bank Account in Hong Kong, which will help you to understand the process in a transparent way.
Here’s a guide which will help you to understand how an offshore business consultant can help you to start your business.
How Can We Help?
Business Setup Worldwide is one of the top business consultants who has been continuously helping global business investors to kick-start their business. At BSW, the business advisors are well-experienced and hold industry knowledge, which allows them to deliver customized solutions suiting the business needs.
Looking forward to investing in an offshore company in Hong Kong and are confused about where to start? Feel free to have a word with our experts. Contact us today-we’d be glad to assist.