A Hong Kong offshore company is one that has been set up and incorporated outside your jurisdiction of residence. There are many benefits in setting up an offshore company. These, along with some disadvantages, should all be considered when deciding to incorporate offshore.
As a requirement for registering an offshore company, you may not be able to trade within the country itself, but as a result you may not have to meet the same tax obligations. A Hong Kong Offshore company is an excellent corporate structure to help minimize international taxation.
An offshore company in Hong Kong provides entrepreneurs with an efficient gateway to the huge economy of China. The Shenzhen – Hong Kong Innovation Circle is one initiative that endeavours to attract technology and research to the Hong Kong region. The Pearl River Delta in China’s southern coast region is one of the fastest growing regions in China and is responsible for 30% of China’s exports. Hong Kong’s links will only grow stronger due to the importance of this region.
As a premier financial hub in the Asia pacific region Hong Kong provides entrepreneurs with a respected and secure banking environment. All the top international banks are present and having a Hong Kong corporate bank account presents a good image for clients and potential investors. While the Hong Kong financial sector is highly advanced, opening a corporate bank account is not easy and can be time consuming. A good corporate service provider is valuable for this process, as they will be familiar with all the due diligence and documentation the bank requires.
Doing business in Hong Kong is straightforward, as recognized by the World Banks Doing Business survey, which ranks Hong Kong 3rd out of 183 countries. Hong Kong ranks well in aspects such as construction permits, protection for investors, paying taxes and trading across borders.
A properly structured Hong Kong offshore company can benefit from legal tax exemption for profits sourced from outside Hong Kong. This is one reason many companies select Hong Kong as the domicile for regional business operations in Asia.
Starting up a Hong Kong offshore company offers many benefits to a business. There are tax breaks, lower operation costs and close proximity to China and the rest of Northern Asia. However, before deciding if offshore company registration is suitable for your business, consider the pros and cons against the company objectives. Speaking to an offshore company specialist will also give a third party perspective that can offer valuable advice and insights toward your business success.
Healy Consultants is a leading corporate services firm that assists entrepreneurs and investors complete offshore incorporation, including a Hong Kong offshore company. The firm provides a range of corporate services to assist entrepreneurs with setting up their company, including offshore tax planning and corporate bank account opening.