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INTERSHORES I Account Opening & Pre-vetting
Similar to other financial centres in the globe, banks in Hong Kong do not have an identical list of information required for account opening as they formulate policies according to their strategies and risk assessment appetite. Apart from local legislation and requirements, banks also need to comply with international requirements mandated by their overseas authorities or head offices. It is not uncommon that account opening requirements varies.
Moreover, apart from local requirements, some banks also need to comply with the requirements or standards mandated by their head offices or overseas authorities. The account opening requirements of these banks may therefore vary.
For...
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INTERSHORES I What Are The Benefits Of An Offshore Bank Acocunt?
An offshore bank account is an account set up in a country outside of the home country of the account owner. Such a bank account is usually set up after the offshore business setup process is completed, as it is often more convenient and faster to open a bank account after offshore company incorporation. However, it is not compulsory to have an offshore company having an offshore account.
Benefits of an offshore bank account
1. More privacy and security
Having an offshore bank account implies that there is more privacy and security for the company. Offshore banks are not allowed to disclose any information about the company to the public.
2. Greater tax benefits
Different...
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INTERSHORES I Top 7 Best Offshore Banks For Cryptocurrency In 2022
Traditional banks are wary of cryptocurrency businesses because of the high risks and volatility brought about by cryptocurrencies. Finding crypto-friendly banks for corporate bank account opening is important for your cryptocurrency business.
While many large banks are still sceptical about digital currencies and technology, there are increasingly more banks that are receptive to cryptocurrencies. Crypto-friendly banks aim to provide their customers with lower transaction fees for moving from crypto to fiat currencies, and vice versa. Some of the key features your cryptocurrency business should look for in a corporate bank account include:
1. Ease of use
2. Security
3. ...
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INTERSHORES I 12 Resolutions To Keep You Financially Fit For 2022
1. Keep a budget. Budgeting is simply a plan for how you intend to spend and save your money. Knowing how much money you earn and spend each month puts you in a better position to save and plan for the future.
2. Live below your means, but within your needs. Before spending any money, you should ask yourself the question, “Can I afford it?” But even if you can afford it, you should also ask, “Do I need it?” Spend on what you need, rather than what you want and try to get the best deal for your money.
3. Pay yourself first. Have the money you plan to save automatically deducted from your monthly paycheck before you pay any other bills. One of the...
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INTERSHORES I How to Choose Your Hong Kong Incorporation Package
Hong Kong technically is not an offshore jurisdiction but somehow an offshore-like jurisdiction with the benefits that outperform the others attracting large number of businessmen to come here for business. Hong Kong private company limited by shares is the most feasible business entity for entrepreneur to setup as the owners/directors do not have to be present in Hong Kong for incorporation. Before you decide to set up a Hong Kong company with a specific services provider. You may have to consider the following :
Buy a shelf company or tailor made a new company?
What is Shelf Company?
Shelf company (also named as off the shelf or ready-made company or stock company) is simply a...
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INTERSHORES I Hong Kong Money Service Operators (MSO) License
Recently, we have been receiving much enquiry on application for Money Service Operators License in Hong Kong. We would like to highlight the key areas:
General Information & Governing Authority
Any person operating a money service is required to be licensed with the Commissioner of Customs and Excise pursuant to the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance, Chapter 615 (AMLO).
What is Money Service Operators Service?
Money service operators service includes money changing service or a remittance service.
A money changing service means a service for exchanging of currencies that is operated in Hong Kong as a business, but does...
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INTERSHORES I Stay Stuned For Bank Account In Hong Kong
There are tremendous reasons in holding a portion of your savings at a safe, stable bank out of your home town:
1. Many foreign banks are much healthier than their Western counterparts who usually have razor-thin capital and tight liquidity.
2. Foreign banks typically make it easier for you to diversify your currency exposure, so that you don’t bet your whole savings on a shaky fiat currency that can be devalued overnight.
3. Foreign banks are further from your home government’s reach. Capital controls, exchange controls, asset freezes etc. become irrelevant when you bank in a safe foreign jurisdiction.
Problem is, it's becoming increasingly difficult to open a...
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INTERSHORES I Prohibited Or Unacceptable Activities List of Onshore/Offshore Bank
Different bank has its own policy to accept clients. Below business activities are usually considered as prohibited or high risk activities that may not be accepted by onshore/offshore banks:
1. Production or trade in weapons and munitions, radioactive materials.
2. Production or trade in tobacco, pharmaceuticals subject to international phase outs or bans.
3. Production or trade in pesticides/herbicides subject to international phase outs or bans, wood or other forestry products from unmanaged forests.
4. Production or trade in ozone depleting substances subject to international phase out.
5. Production, trade, storage or transport of significant volumes of...
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INTERSHORES I A Dormant Company Or Non-Commencement
In certain circumstances, you may want to hold your Hong Kong private limited company sometimes.
Dormant Status
The Companies Ordinance allows an inactive Hong Kong private limited company to be maintained at a minimum cost by passing relevant special resolution and delivery necessary documents to the Registrar, to declare as a “dormant” company. A company is deemed to be “dormant” if it does not enter into a relevant “accounting transaction”and can exempt from the following statutory compliance:
1. Filing of yearly Annual Return
2. Preparation of Audited Accounts.
3. However, the company has:
i. To comply with law (other...
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INTERSHORES I Hong Kong - Register of Significant Controllers
According to the Companies (Amendment) Ordinance 2018, a Register of Significant Controllers (“SCR”) has to be maintained in Hong Kong (either in the registered office or at a designated location of which a Form NR2 has to be filed with the Companies Registry within 15 days after the SCR is first kept at that place) with effective from 1 March 2018.
What are the new requirements on the keeping of Significant Controllers Register
1. Under the Companies (Amendment) Ordinance 2018, a company incorporated in Hong Kong is required :
i. to identify persons who have significant control over the company (“significant controllers”).
ii. to maintain a...
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INTERSHORES I How Are BVI Used in Asia?
Over the past 25 years, the BVI has become a tried and tested conduit for overseas capital entering Asia, offering legal certainty, general ease of doing business and tax efficiency. Investors benefit from British-based law, a wide pool of professional service providers, local creditor friendly legislation, and an effective judicial system of registering charges.
Example of Using BVI Companies
“A group of international investors identifies a Chinese infrastructure developer that needs capital for a series of projects. They set up an international business company in the BVI as a holding structure and deposit the money, supplementing it with bank loans. The funds are then routed...
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INTERSHORES I Tax Basis in Hong Kong
Businesses and individuals in Hong Kong enjoy one of the most tax-friendly systems in the world. In summary, it is low, simple and competitive. Only three direct taxes are imposed and there are generous allowances and deductions which can reduce your taxable amount.
The Three Taxes are:
1. Corporation
- For limited company, profits tax for the first HK$2 million (approximately US$256,410) of profits of corporations is 8.25%. Profits above the amount will be subject to the tax rate of 16.5%.
- For unincorporated business (i.e. partnerships and sole proprietorships), the two-tiered tax rates will correspondingly be set at 7.5 % and 15 %..
2. Individuals- Salaries tax which has...
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