Hong Kong company is food for offshore company?
Hong Kong is an international city. It shares some characteristics with other leading international city like New York which make Hong Kong a famous international city and so many business investors prefer choosing Hong Kong as an offshore company for their international business and operations.
1. The economy system is market oriented, with a little involvement of government intervention. Many investors can choose what businesses they do, the government are more encourage them to make investments.
2. The capital flows of money between countries are absolutely free and without control and restrictions. All currencies such as US$, etc... can be used in Hong Kong, with absolutely free of money wire in and wire out between Hong Kong and other countries, only exception that no money laundering is involved nor criminal activities.
3. Offshore activities are 100% tax free. The Hong Kong tax law has ruled out that only local business is subject to profits tax, overseas business registered in Hong Kong is offshore busines and so is not subject to profits tax. For example, if the international businessman engages in international trades in such as way that he buys goods from China, the more common way, and sells to other countries such as UK, USA, etc....... if the buying activities are not in Hong Kong, and the selling activities are not in Hong Kong, then the profits are regarded in offshore profits, and are not subject to Hong Kong profits tax.
4. Low tax rate. Even the business is carried out in Hong Kong, the tax rate is only 17.5% of net profits. The tax rate is absolutely low, with no such VAT, business tax, nor capital gains tax, etc.
5. Formation requirement is very simple. As an international city, a person, overseas person or local person, can be appointed as the shareholder and director of a Hong Kong company, with the requirement that there must have an appointed local secretary and registered office address for correspondings. The shareholder and the director can be the same person. In fact, it is the common way that the overseas businessman can act as a shareholder and director for Hong Kong company, and even he does not require to visit Hong Kong and sign documents. He only appoints local secretary to do the paper works for him, and even arrange to open an offshore bank accounts.
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. Unrestricted use of company name. In other countries, some names are not free to use such as holding, group,...., etc. However, in Hong Kong, the name is freely used, provided that they are not registered in Hong Kong, subject to other restrictive rules such as defentive words are not allowed to use.
8. 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 with using Hong Kong company, the investor is required to provice his address proof documents, and passsport 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.
1. The economy system is market oriented, with a little involvement of government intervention. Many investors can choose what businesses they do, the government are more encourage them to make investments.
2. The capital flows of money between countries are absolutely free and without control and restrictions. All currencies such as US$, etc... can be used in Hong Kong, with absolutely free of money wire in and wire out between Hong Kong and other countries, only exception that no money laundering is involved nor criminal activities.
3. Offshore activities are 100% tax free. The Hong Kong tax law has ruled out that only local business is subject to profits tax, overseas business registered in Hong Kong is offshore busines and so is not subject to profits tax. For example, if the international businessman engages in international trades in such as way that he buys goods from China, the more common way, and sells to other countries such as UK, USA, etc....... if the buying activities are not in Hong Kong, and the selling activities are not in Hong Kong, then the profits are regarded in offshore profits, and are not subject to Hong Kong profits tax.
4. Low tax rate. Even the business is carried out in Hong Kong, the tax rate is only 17.5% of net profits. The tax rate is absolutely low, with no such VAT, business tax, nor capital gains tax, etc.
5. Formation requirement is very simple. As an international city, a person, overseas person or local person, can be appointed as the shareholder and director of a Hong Kong company, with the requirement that there must have an appointed local secretary and registered office address for correspondings. The shareholder and the director can be the same person. In fact, it is the common way that the overseas businessman can act as a shareholder and director for Hong Kong company, and even he does not require to visit Hong Kong and sign documents. He only appoints local secretary to do the paper works for him, and even arrange to open an offshore bank accounts.
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. Unrestricted use of company name. In other countries, some names are not free to use such as holding, group,...., etc. However, in Hong Kong, the name is freely used, provided that they are not registered in Hong Kong, subject to other restrictive rules such as defentive words are not allowed to use.
8. 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 with using Hong Kong company, the investor is required to provice his address proof documents, and passsport 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.