Offshore company formation in Hong Kong is prevalent. It is because the tax benefits of forming an offshore company in this country are beautiful. First, the corporation law in Hong Kong is much more conducive to the offshore company’s formation than in any other part of the world. The reason is that the corporate taxation system of Hong Kong is based on the “one unit ownership” system. Consequently, the rate of tax that companies pay is relatively low.
Moreover, the offshore company formation Hong Kong procedure is straightforward. It does not require you to appoint a director or a board of directors. All you need is the registration of your business, its office address, its registered office, and its bank account. You offshore company formation Hong Kong will only be asked to pay for these services once you are ready to open an offshore company. It makes offshore company formation Hong Kong an easy option to get started with your business.
Another benefit of offshore company formation in Hong Kong is that you can save a lot of money on your company’s registrations. It is a well-known fact that Hong Kong has some of the lowest registration fees in the world. As a result, more entrepreneurs are encouraged to set up their offshore businesses because they can save a lot of money. Thus, more people are boosting the growth of offshore company formation in Hong Kong.
There is another reason why more entrepreneurs are attracted to offshore company formation in Hong Kong. The statutory corporate law of the island is straightforward and easy to understand. The statutory requirement that you have to fulfil to open your company is the minimum share capital requirement. Companies that are not registered on the AMS can only take out up to five hundred thousand pounds of share capital from the shareholders.
Registration of an offshore company in Hong Kong is relatively easy as well. The procedure for a company setup in the local stock market is a complex one that takes a lot of time before the process is completed. Companies that want to become established quickly can register with a statutory agent that acts on their behalf.
Finally, among the many benefits of having an offshore company are the tax benefits that come with it. You will have to pay taxation on the income that you earn offshore, but you do not have to pay any tax on the money that you send to your home country. Hong Kong has been one of the tax-haven countries in the world since it was introduced. There are also other benefits, such as exemption from paying income tax on dividends and capital gains.
In other words, the registration fees are meagre. They do not require you to pay anything beyond the purchase of the necessary documents and payment for the registration agency’s services. It makes it very convenient for individuals who are just starting up and would otherwise have a hard time convincing potential shareholder. On top of the low registration fees, you do not have to worry about paying the other expenses like the annual membership fees and other annual payments that the IRS requires. It also reduces the costs you will incur if you wish to hire an offshore accountant toprepare your income tax return.
The fourth benefit of having a company in Hong Kong is the ease with which you can conduct business. Unlike most countries, Hong Kong has simplified tax regulations so that there is no need for you to pay special attention to these areas. Even when you are required to register a corporation in Hong Kong, you will only be required to provide your details and address where you want your company to be registered. It means that you will be able to open a new account in any financial institution that offers international banking, and you can transact business even when you are on vacation in another part of the world. With all these benefits, Hong Kong is undoubtedly a good choice if you want to establish an offshore company.