Advantages Of Company Setup in Hong Kong


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Advantages Of Company Setup in Hong Kong
1. Hong Kong economy system is open and market oriented with a little government intervention. Investors can choose what businesses they do. In fact, from global statistics records, Hong Kong is number one in economy freedom.
2. The capital flows of money between Hong Kong and other countries are freedom,  and without controls or restrictions. All currencies such as US$, GBP, Japanese yen, etc are remitted freely between Hong Kong and other countries.
3. Offshore business activities are 100% tax free. The Hong Kong tax law has confirmed that only local businesses are subject to profits tax, overseas businesses registered in Hong Kong are offshore businesses and so are not subject to Hong Kong profits tax. For example, if the international businessman engages in international trading in such a way that he buys goods from China and sells to UK or USA. If both buying and selling activities are not happening in Hong Kong, then the profits from that trading business are regarded as offshore profits, and are not subject to Hong Kong profits tax.
4. Low tax rate. Even if the business is done in Hong Kong, the tax rate is only 16.5% of net profits. The tax rate is very low, with no other tax systems such as VAT, business tax, capital gains tax, etc.
5. Formation requirement is very simple. An overseas person can be appointed as the shareholder and director of a Hong Kong company, they only need to find local professional firms to provide appointment of secretary and provide registered office address.
6. No capital investment is required. The shareholder is only required to sign up the M & A to declare that he will contribute capital to the company, and will not be required to pay money to the company.
7. Free use of company name. In other countries, some names are not freely used such as Holding, Group, International ...., etc. However, in Hong Kong, the name is freely used, provided that they are not registered in Hong Kong.
8. It is easy to open an offshore bank account with using a Hong Kong company, the investor is required to provide his proof of address, copy of passport, Hong Kong company formation documents and a general description of his business. An international banker will accept the above documents and open an offshore bank account with multi-currencies and internet banking facilities included within a couple of days, or even in some cases the same day.
9. Legal system is using common law and equity that applied in UK and other Commonwealth countries.
10. The common form of Hong Kong company is private limited company. It is private in nature and limited in liability for shareholders.
11. Corporate structuring is allowable. An overseas company can be appointed as corporate shareholder and director of Hong Kong company. For example, a BVI company can be appointed as a director and shareholder of Hong Kong company.
12. Trust law is applicable in Hong Kong. If the investor, for his personal reasons, wants his status to be hidden, he can do so with a trust arrangement that the trustee holds the shares for him (as a trustee) and the beneficiary who holds the trust deed which proves him as the real owner of the shares. The trust law is applicable in Hong Kong. Remember trust documents or such laws are not enforceable, ineffective, invalid or void in other countries such as China.