Why Choose Hong Kong
Why Hong Kong Advantages of Hong Kong Offshore
- A Hong Kong offshore company is one of the best corporate structures in the world, ranked as the second easiest place in the world for conducting business.
- A Hong Kong offshore company is an excellent corporate vehicle to house global corporate profits, thus minimizing international taxation.
- A Hong Kong offshore company is an ideal gateway to China. An upcoming major project that allows for Hong Kong offshore company to leverage on this gateway is the Shenzhen-Hong Kong Innovation Circle, which is designed to encourage overseas enterprises
- Hong Kong's corporate and personal banking system is considered one of the most secure in the world. Hong Kong has strong client confidentiality guidelines and has committed to the OECD tax principles.
- An offshore company in Hong Kong is not perceived as a tax avoidance mechanism. Consequently, it is easy to open corporate bank accounts globally for a Hong Kong offshore company.
- A Hong Kong company is legally tax exempt if the entity has no customers and no suppliers in Hong Kong. In other words, international income is legally tax exempt!
- Hong Kong company incorporation documents are bilingual, English and Chinese. These documents make doing business in China a little easier, particularly when supported with a HSBC Hong Kong multi-currency corporate bank account, allowing China renminbi currency transactions. Moving a company into the PRC is much easier after establishing a company in Hong Kong, as Chinese officials are familiar with Hong Kong corporate do
- Hong Kong taxes are among the lowest in the world. The tax system is simple and favors offshore company setup. Hong Kong's corporate income tax rate is 16.5%. There is no capitals gains tax, no VAT/GST, no estate duty, and no withholding tax on dividends or interest. Furthermore, foreign sourced income is exempt from tax in Hong Kong and there are no foreign exchange controls in Hong Kong. Thus, a Hong Kong offshore company that derives income from abroad is free from tax liabilities in Hong Kong.
- Hong Kong adopts a favorable foreign ownership policy by entitling the shares of a company to be 100% foreign-owned.
ADVANTAGES OF HONG KONG AS OFFSHORE
Simple taxation System
- Hong Kong offshore have no tax liabilities. The tax rate is zero percent (0%). Hong Kong's corporate income tax rate is 16.5%.
- Offshore company can be tax exempt from even the lowest taxes, as corporation tax is only charged on profits derived within the territory of Hong Kong.
- There is no capital gain tax, withholding tax on dividends, interest tax and sales tax (VAT)
Minimal Compliance Requirements
- The information of directors, officers and shareholders can be kept completely confidential
- Only one shareholder is required for incorporating an offshore
- A private limited company to appoint a minimum of one director
- Directors may be non-residents of Hong Kong and can be either individuals or a corporate body.
- Minimum one shareholder required, Maximum of 50 shareholders allowed.
- Use of nominee directors allowed. Only the identity of the nominee director is listed as a public record
- Neither nationality nor residence restrictions apply on company directors or company shareholders
- 100% local or foreign shareholding allowed, nominee shareholders allowed
- Hong Kong Offshore may have beneficial owners - Sole director can act as shareholder
Lenient Rules for Holding Company Meetings
- There is no compulsion for an offshore to hold Annual General Meetings (AGMs)
- Board meetings can be held anywhere in the world including the Hong Kong
- Physical presence of attendees is not a requirement in company meetings. Telephonic and virtual meetings are acceptable
Lenient Accounting Requirement
- Offshore are not required to file annual returns
- Offshore are not required to prepare (or submit) company accounts to any authority
- Offshore company accounts need not be audited by internal or external auditors
- Books and records of Offshore can be maintained anywhere in the world
- Share books or company meeting minutes (if maintained) need not be certified by any authority
Lenient Rules for Share Capital
- An authorised share capital is established upon incorporation.
- A minimum of one share is required to be issued. Shares can be issued for cash or other consideration.
- The authorised share capital can be increased at any time by the passing of an ordinary resolution by the shareholders
- Shares are freely transferable
- Standard authorised share capital for companies incorporated in Hong Kong is HK$10,000 represented by 10,000 ordinary shares of HK$1.00
Limited Liability Companies
- Best for Foreign investors
- They can enjoy the benefits of limited business liabilities (limited to the amount of registered capital)
- Complete legal entity (person) to enter into any business contracts and agreements
- Wide range of business scopes and freely transferable company shares
No Instant Capital Injection Requirement
- Investors can arrange capital injection according to their own business time schedule and plan
- It provides a high degree of flexibility for investors to arrange their cash flows.