Because of the tax system, the little intervention of the government in the foreign companies’ activities, simple registration procedure, economical and political stability, Hong-Kong is a desirable location for opening offshore companies by the foreign investors.
One of the great advantages of keeping an offshore company in Hong Kong is the possibility to have 100 % foreign members.
The tax system for a company setup in Hong Kong is also friendly for the foreign investors: for example, the corporate income tax is 16.5 %, the VAT doesn’t exist and there are no estate tax capitals, gains duty and no withholding tax on dividends or interest. Also the foreign profits are exempt from tax.
Minimum one shareholder is required and maximum fifty. The shareholders may be natural persons or companies.
The company created in Hong Kong must also appoint a local individual or corporate resident to have the role of company’s secretary.
The companies that are only registered but do not poses any liabilities or assets are called shelf companies and may be purchased by investors that have no time to wait until a new company is incorporated. After buying it, the investors may invest directors and secretary of the company, increase the share capital and change the name and the registered address.
The investors that wish to register a new business must know a few facts. First, the company’s desired name must be checked at the Companies Registry. If it’s not a duplicate or too much alike with another one, it can be reserved.
After that, the following documents must be submitted to the Registry:
After 14 days from registration, the offshore company established in Hong Kong must also deposit the following documents:
For personalized consultancy please feel free to contact our local specialists in company formation. If you happen to be in need of professional company formation services in Thailand or in Austria, we can put you in touch with our Thai partners
A bank account must be opened and within a month since the registration, the company must be registered at the Inland Revenue Department.
Operating a trading company, a retail shop, a travel agency, a restaurant, an employment agency, an education business, a financial services agency, an event management agency are activities that require receiving a license, so it is important to apply for it at the competent authorities. The type and number of required permits and licenses vary greatly from business to business. We recommend taking the help of a qualified lawyer or business consultant in Hong Kong for professional advice, which will certailny help you rest assured you start your business proper and in the legal fraework of this city-state.
Only if the above steps are completed, the foreign investors may start operating business and enjoy the benefits of having an offshore company opened in Hong Kong.