There are many options when it comes to offshore banks; however many are choosing Hong Kong. Let’s find out why a Hong Kong offshore company could be right for you.
Hong Kong is an international city and has a very stable economy and political status. As a part of China, Hong Kong has a strong workforce of diligent workers and acts as a gateway to the huge market of Mainland China.
Why Hong Kong?
Hong Kong’s economic freedom is due to very limited Government intervention and proactive policies for foreign investors. Investors are encouraged by various incentives and what they are able to do which makes it one of the most liberal jurisdictions when it comes to economic freedom.
There are no restrictions on the currency that flows in and out of Hong Kong. Currencies like USD, GBP and Japanese Yen are freely remitted between Hong Kong and the rest of the world.
Offshore businesses are completely tax free. According to Hong Kong law only local businesses are subject to profit tax. This is a major benefit for traders, a trader can buy a product from one country and sell it to another while not paying any tax, as both transactions happened out of the Hong Kong jurisdiction.
Low tax rates
For local businesses there is a tax rate, which is low when compared to other countries. The tax rate on local businesses is currently 16.5% of net profit booked by the company. The absence of VAT, capital gains tax and business tax makes a Hong Kong offshore company a viable choice.
The startup procedure for a business is very simple and requires no capital investment. A business owner can appoint a foreigner as director and shareholder, as long as they recruit a local professional as secretary and a registered office address. The non-requirement of a capital investment makes it far easier for an entrepreneur to open a company in Hong Kong. There are no restrictions on the name you chose for your company unlike many countries; you can pick from Holding, International, Group, etc.
Offshore Bank accounts
Opening an offshore account in Hong Kong has become very easy in the past few years. Global players originally from Hong Kong, such as HSBC have made great strides in easing out the process, while providing their customers with a feature rich experience. The information required includes a passport copy, Hong Kong company information, and a general description of the business.
The common type of company held in Hong Kong is a private limited company. Being private in nature such companies transfer minimum liability to their shareholders.
A foreign company can easily be appointed as a shareholder, or director, or both of a Hong Kong company.
If the investor or owner of the company wishes to be anonymous, he or she may do so with a trust arrangement. Hong Kong is one of the very few countries which give an investor this option.
For the above-mentioned reasons and more, a Hong Kong offshore company can prove to be a valuable platform for a successful business operation.
- Hong Kong offshore company : Healy Consultants is a leading corporate services firm that assists entrepreneurs and investors with setting up a Hong Kong offshore company, along with a range of other corporate services. The firm provides a range of services to ensure the success of the Hong Kong offshore company.