There are various benefits of incorporating company in Hong Kong by any individual, company, and corporations whoever has FC exposure in their businesses. Mostly all Importers and Exporters based out of Hong Kong.
Benefits varies with respect to Forex Fluctuations, Tax Implications in respective countries, Ease of doing business and Liberal Business Banking, various options of trade financing, as well leveraging one’s net worth more effectively. To summarise:
- Hong Kong as a gateway to Mainland China
- Simple tax regime – a flat rate of 16.5%
- Excellent reputation of banking and financial system
- Fast, cheap, and simple company set up
- Attractive foreign investment policy – no restriction on foreign ownership
- Distribution of dividends is not taxable, inheritance tax had abolished
- World-class infrastructure
- Legislation based on the English Common Law as inherited from British colonisation
Based on local prevailing laws any non Hong Kong resident can form
- Standalone Limited company
- Wholly Own Subsidiary
- Branch office
- Offshore company
- Takeover of existing qualified company
In order to keep your Hong Kong company complied in all respects we provide following services after formation of your company.
- Address Maintenance.
- Correspondence Maintenance
- Banking Maintenance
- All mandatory renewals of company
- All mandatory returns
- Compliance of all Statutory and Stipulated laws
Standalone Limited company
Standalone Limited companies are companies with limited liabilities. Irrespective of your business and in your country of residence you can maintain another company in Hong Kong which has various benefits to your existing business in your country of residence.
From a legal perspective, a limited company is a separate legal entity and thus has the capacity to institute proceedings against others or vice versa. Since the liability of shareholders or members is limited to their shareholdings, the maximum possible loss of the shareholders could only be the total sum of their investments. Generally speaking, the directors and shareholders of the companies are not personally liable for the debts of the company.
Most important benefit is you can reflect your existing business in this Standalone Limited Company and rip the benefits of liberal banking in Hong Kong.
Wholly Own Subsidiary
Wholly own subsidiary commonly known as WOS is similar to Standalone Limited Company but has direct holding of existing business in your country of residence.
Benefit of WOS is one can raise the foreign funding as per the policies of their central bank guidelines which are known and acknowledged by Hong Kong banking institutions.
Wholly own subsidiaries have direct tax implication at country of residence.
Branch office
There are 2 common business forms for foreign investment in Hong Kong: registration of the branches, representatives or other offices of the overseas companies; incorporation of registered limited liability companies (subsidiary companies incorporated in Hong Kong). There are no controls on foreign direct investment by means of the regulation of foreign corporations that carry on businesses in Hong Kong and the choice between the above 2 methods are merely business decision.
Branch offices have direct tax implications in country of residence.
Offshore company
Also known as International Business Company has various benefits with respect to tax, legal, and confidentiality. These various benefits varies according to which offshore jurisdiction has been chosen while incorporating. Most famous ones are most vulnerable ones. Tactical study of each offshore jurisdiction should be done suitable to your business.
Some general key features are as appended
- Beneficiaries’, directors’, and members’ names are NOT listed in public documents or registered with local authorities;
- These individuals may reside anywhere in the world (some restrictions may apply to residents of the jurisdiction of its incorporation);
- No annual return and/or audit required, and all financial data is kept confidentially in the company’s office;
- The company may have corporate directors, enhancing its confidential characteristics even further
Takeover of existing qualified company
Many existing business houses needs to take over a qualified company with respect to their existing business line in order to build their books and avail competitive banking facilities.
Hong Kong is the destination for instantly availing such requirements and enhancing the business prospects from day one.
Beneficial for the business houses who are looking for reducing their banking cost in their respective country of residence, balance sheet enhancement as well complying to various IPO obligations.
We can assist you in such acquisitions.