Offshore Company

The low corporate tax rate and pro-business environment are the main reasons why business owners choose to start a business in Hong Kong. Ranked as the third easiest place to do business by the World Bank in 2020, it is a relatively straightforward process to set up a business in Hong Kong as it can be done remotely and there are no resident directors or minimum share capital requirements to set up an offshore company in Hong Kong. Before you setup offshore company in Hong Kong, it is important to understand the various Hong Kong offshore company tax your company may have to pay. What to know about Hong Kong offshore company tax? 1. Corporate income tax Hong Kong operates based...

What are the advantages of an offshore company in Hong Kong? 1. Tax system i. Businesses in Hong Kong are subjected to a Profits Tax Rate of 8.25%for the first assessable profits of HK$2million and thereafter 16.5% on the locally sourced income, which is lower than the worldwide average corporate tax rate of 23.85% measured across 177 jurisdictions. ii. Hong Kong offshore company tax system is simple and beneficial for businesses. Businesses are completely exempted from tax on foreign income, capital gains tax, and withholding tax on dividends or interests. iii. The government has an extensive network of Double Tax Agreements with over 45 countries. 2. Effective...

Although Hong Kong does not have any specific law that governs offshore company formation, it is one of the most popular jurisdictions for setting up an offshore company owing to its low tax regime, absence of foreign exchange controls, political and economic stability, ease of offshore company setup, etc. Setting up an offshore company in Hong Kong is the perfect vehicle for conducting offshore banking activities, international trade, investment activities, and for asset protection. This guide sets out the advantages of Hong Kong incorporation, the options for registering an offshore company in Hong Kong, Hong Kong Offshore Company formation requirements and Hong Kong incorporation...

Given that Hong Kong has continuously topped the World Bank's Ease of Doing Business Index, a very common dilemma for foreign companies seeking to enter the Asian market would be the pros and cons of a Hong Kong offshore company. Understanding the steps to register offshore company in Hong Kong might thus help you to make your decision. Is choosing to register offshore company in Hong Kong right for you? 1. Offshore companies are companies that do not carry out business operations or management activities within their country of incorporation. Instead, they operate internationally and trade with customers worldwide or can sometimes be used as a holding company. This allows them to...

We are always been asked, please set up an offshore Hong Kong company for me. The term “Offshore Hong Kong” is not a form of company available as Hong Kong is not a tax haven city. Form of companies available are sole proprietorship, partnership, private limited company, public company, listed company. There is no “offshore Hong Kong company” strictly speaking. However, businessmen choose to incorporate a private limited company in Hong Kong but operate out of Hong Kong i.e. its business activities are carried on outside of Hong Kong in order to take advantage of Hong Kong’s territorial taxation system which means that tax is charged on local income...

It is very common using low-tax jurisdictions as trading arm in which part of the profits of the operation can be realized in a low-tax jurisdiction. Even if the process takes place wholly in one high-tax jurisdiction, it may be possible to separate the 'selling on' part of the process from the 'making and procuring' part, and send it offshore, particularly now that e-commerce infrastructure is available in many IOFCs (International Offshore Financial Centre). The eventual value of having an offshore trading company will depend on the overall corporate structure, and on the particular country or countries in which the owner resides. To get the best result, it will normally be good for...

'Offshore' has official dictionary meaning. It is used to mean 'outside the control of highly-taxed nations’ or “tax haven” countries which simply reflects the most low-tax islands whereby many had made their living from tourism, water sports or agricultural products. The low-tax (offshore) jurisdictions had grown in the early 20th century in response to high tax rates in the developed countries. It is estimated now that more than half of the world's money is in these low-tax jurisdictions. There are 70 self-declared IOFCs (International Offshore Financial Centres) already, and many other countries that would be joining them if there shall be businesses. At the...