The benefits of company formation in Hong Kong can be broadly divided into three areas – the reduction of taxation, the ability to restrict access to bank accounts, and the ability to enjoy a range of other benefits. However, the first two are not the only benefits of company formation in Hong Kong. In this article, we look at the third benefit – the ability to set up an offshore company in a very low-cost manner.
Register offshore company in Hong Kong can often prove to be a complicated process. It is especially true when you consider that the rules that apply to your domestic company are very different from those that apply to an offshore company. It is for this reason that it is often better if you use a professional company formation service. An excellent example of such a service would be Kowloon International. As well as providing their services at very competitive prices, they also offer support after the company formation process has been completed.
If you decide to set up an offshore company in Hong Kong, you can make it even easier by using a trusted service. By establishing a trust, you will be able to shield all your income and assets from your home country’s tax laws. However, even this advantage will not be as vast as you might imagine. For example, most tax havens offer a tax haven investment allowance of 10 percent. You will need to check the law of your country of residence before you establish a company in Hong Kong.
When you decide to set up an offshore company in Hong Kong, one of the first things you will consider is your company’s location. Hong Kong itself has a great deal of land, and there is no need to worry about how you will finance the construction of your new company building. You may be able to find financing from a bank, but this is a riskier proposition. If you were to default on your loan, your bank would probably seize your property and sell it to recover its losses.
You can avoid such complications by setting up a company in a different jurisdiction. In addition to avoiding legal problems with your home country tax collector, you will also protect yourself against corporate death duties. If you decide to register offshore, your company will not be subjected to bankruptcy laws in your home country. You will be able to pay your taxes with the proceeds from your company’s sale.
If you do not have any company formation experience, it is a good idea to seek a company formation company. These companies are experienced and will do all the legal documentation for you. It is important to note that some offshore company formation companies may try to take advantage of newly registered companies. If you become a victim of such a scam, you may wind up paying more than you should for your services as a company director or secretary.
Before you register an offshore company in Hong Kong, it is essential to understand the law’s requirements in that particular jurisdiction. Companies that operate using the Internet might need to follow the jurisdiction laws in which they conduct business. Companies should avoid employing employees from a foreign country if it does not make economic sense for them to do so. There are some jurisdictions in which employing employees from another country is illegal.