Hong Kong is the best play for forming offshore
company because there is no specific law prevailing here for such business. Moreover,
the tax regime and foreign exchange control makes it a perfect business
destination. Here are some details for you to help you decide on HK company formation.
1. There are many benefits that you can enjoy
by setting up an offshore company in Hong Kong. Firstly, the place is ranked on
top and is considered as a centre of business because starting and setting
company here is very easy. You can avoid unnecessary problems like special authorization from government authority etc. Foreign ownership policy in Hong
Kong is favorable for business. Along with political stability you can enjoy
tax benefits by setting up business in Hong Kong. Tax here is considered to be
the lowest and especially for offshore companies it is favorable. There is no
tax applicable on VAT, capital gains, dividends and interests. Moreover, income
sources from other countries are also exempted from tax. So if you are planning
to set up an offshore company with income from abroad then you will not have
any kind of tax liability in Hong Kong. You are free to open and operate your
company.
2. Politically Hong Kong is very stable. Hong
Kong has its own judicial system and by far it is considered to the second best
in Asia.
3. There are two options available in Hong Kong
for establishing offshore company. You can either register and have a new
company or invest in a shelf company. Registering complaining in Hong Kong is
simple and easy. If you have all the required details ready, then the procedure
can be completed within one week’s time frame.
If you are purchasing a shelf company in Honk Kong, then as the name
suggests it is already registered and you will get all the required legal
papers. Once the company is purchased you can change its name and modify it by
adding share capital, appointing directors and shareholders. These kind of
registered or shelf companies are only considered by people who are in a hurry
and want to start off immediately.
4. There are rules that you need to follow for
HK company formation and registration.
You must decide on a company’s name and get it approved by the Hong Kong
Companies Registry. You can appoint unlimited number of directors but at least
one is necessary to get the company registered. Director you are appointing can
be a resident of Hong Kong or a foreigner. Next, you can have one to a maximum
of 50 shareholders, either resident or non-resident in your company but ensure
that you have a person in the post before registration and also to smooth the
process. Appointment of company secretary is mandatory in Hong Kong.
5. Company in Hong Kong can only be registered
if it has a physical address. You cannot use a PO Box address for registering
company in Hong Kong.
6. Share capital can be any amount but it’s an
important element for HK company formation and registration.
