No doubt Hong Kong is the most famous international city in the world, and a lot of investors choose Hong Kong for opening an offshore company there.
1. The economic system is market oriented, many investors can choose alone what businesses to do, the government only encourage them to make investments.
2. Offshore business activities are 100% tax free. Only local business is subject to tax on profits, international company registered in Hong Kong is offshore business and is not subject to income tax.
3. The capital flows of money from and to Hong Kong are totally free and there is no control. To your consideration, all currencies can be used in Hong Kong with absolutely free of money wire in and wire out between Hong Kong and other countries. There is only some restrictions of amounts coming at a time, this point you should check with the bank you are going to open account.
4. Formation requirements are very simplified. Foreign person or local person can be appointed as the shareholder and director of a Hong Kong company, with only the requirements of an appointed local secretary and registered office address for corresponding. All these you don’t need to worry about, your agent will take care about it. There is no need to stay in HK all the time; you can make your business from your country connecting by Internet and phone with your secretary.
5. Low tax rate. Even the business is done in Hong Kong, the tax rate is very-very low these years, with no other tax systems such as VAT, business tax and others. You can enjoy tax holidays at the beginning of your company business.
6. No capital investment is required. The shareholder is only required to sign up the agreement to declare that he will contribute capital to the company, and no actual capital investment is required.
7. The company in Hong Kong can be a convenient financial tool: holding of mainland activities, withdrawal of profit from the mainland business, transferring money from abroad for goods. However, this tool is not that cheap, because there are other mandatory expenses like office, lawyers, accountants and auditors.
8. Freely use of company name. In Hong Kong, the name is freely used (group, holding), if only they are not registered in Hong Kong.
9. Legal system remains law systems and equity rules applied in UK and Commonwealth countries.
10. It is easy to open an offshore bank account with using Hong Kong company. Hong Kong as an international city, offshore bank account is rather easy to open using Hong Kong company. The investor need to provide his address proof documents, passport copy, Hong Kong company formation documents and a general description of his business. HSBC and Standard Chartered Bank, as in international bank, can accept the above documents and open an offshore bank account with multi-currencies and internet banking facilities included. It will take few minutes to finish formalities. Today there is also an opportunity to open account staying in your country in HSBC bank through video call.
