Offshore Company Incorporation
Establishing an offshore business entity has been in trend for decades. The primary reasons are, setting up an offshore company can highly eliminate the burden of tax, can minimize reporting requirements, reduce audit risks and provide a privacy protection. For those doing business using an offshore business entity, it is indeed a smart move.
Hong Kong is a Great choice for Offshore Business
Setting up an offshore company in Hong Kong is an outstanding way to house a company’s global corporate profit. It also minimizes tax. And if there isn’t any trade activities within Hong Kong, companies will be legally tax exempted
An offshore company can be quickly set up in Hong Kong. Offshore company incorporation can be done within a week because of the well-founded banking facilities in Hong Kong. Such companies require one director, one shareholder of any nationality. The country can arrange clients with a lot of banks with no foreign exchange control. Even the government has strong confidentiality guidelines when it comes to client handling
Client’s companies are legally tax exempt provided there are no trade activities within the city. Moreover, there is no withholding tax, no capital gains tax, no sales tax, no value added tax as well as no accumulated earningstax imposed on the income of the company
An offshore company need not have to pay taxes on earnings from outside of Hong Kong
Hong Kong based offshore companies are not considered as tax avoidance mechanism. As a result, it is easy for such companies to open corporate bank accounts globally
Most importantly, offshore companies have numerous uses such as shipping company, international trading, owning real estate, holding company, international consulting services and owning copyright and patents
Steps required for offshore company incorporation
- Choose a business name
- Prepare articles of association
- Select one director
- Select a shareholder
- Select one resident company secretary
- Register the office address
- Prepare and sign articles of association and other forms
- Submit documents and get certificate of incorporation
Benefits of Offshore Company Incorporation
With the easy availability of global corporate banks in Hong Kong, there is no requirement to rent physical office to complete company formation, in fact, virtual offices are also allowed. Companies that incorporate in Hong Kong benefit from its low and simple tax structure, which is limited to a maximum of 16.5 percent and income tax peaking at 15 percent
Moreover, the country’s access to the 450 million people consumer market in Southern China makes it the first choice for company incorporation in Hong Kong. Not only this, companies incorporated in Hong Kong have access to its developed sea links, rail, air and roads that are efficient enough to provide smooth transportation facility from commercial perspective.
Hong Kong’s culture lends a significant business advantage, facilitating entrepreneurs’ understanding of the biggest Asian market. With English and Chinese being the main official languages, English is the common language of business thereby making it easier for the businessmen to conduct business in this country.