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INTERSHORES I Business Activities For HK Company
Whatever business you are planning for your Hong Kong company, you need to declare to the authorities – the Business Registration Department via Companies Registry at incorporation) and the bank at bank account opening.
At Incorporation, Make it Simple.
The Companies Registry will not ask you for your business details. A simple description that is able to ascertain the industry involved is the best. Activities description such as consulting, trading, investment, holding, investment holding, manufacturing, retail, etc. can serve the purpose.
You should note that,
1. your business activity will appear on the Business Registration Certificate.
2. the length of...
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INTERSHORES I Establishment and Operations of Labuan leasing business
The asset leasing industry in Labuan, which reached nearly USD1 trillion its overall global annual volume in 2017, has been undergoing numerous tax and regulatory changes. In the Asian region, in particular, the industry is expected to grow between 10% and 18% in the next five years. Levelling of the “international playing field” and the shrinking of regulatory arbitrage, Labuan International Business and Financial Centre (Labuan IBFC) has position as a Asian-based cost-efficient, substance-enabling midshore jurisdiction.
The Changes to Labuan Leasing Business and Operation
Background
A key driver to the introduction of the revised Guidelines effective from 2018 is to...
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INTERSHORES I Factors in Selecting the Choice of Jurisdiction for Trust
Key Factors to Consider
Selecting the proper jurisdiction for the Offshore Trust is a matter of critical importance. As a general rule, the jurisdiction should have a well-established trust law favorable to asset protection strategies. Further, it should be inconvenient or nearly impossible for a creditor to reach the assets of the trust by commencing an action in the foreign country. Consider the following factors when selecting a jurisdiction for an Offshore Trust:
Ease of Communications
Communication with the foreign trustee must be convenient. Fortunately, the use of e-mail and fax as well as improvements in telephone technology have made communication with even the most...
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INTERSHORES I Trading in Low Tax Jurisdiction
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...
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INTERSHORES I Offshore Bank, Their History
Offshore banking refers to the deposit of funds by a company or individual in a bank that is located outside their national residence. Although the term implies that these banks are located on islands, many offshore banks are, in fact, found in onshore locations, such as Panama, Luxembourg and Switzerland.
The history of offshore bank accounts originated for the same reason that even now they continue to attract citizens from different parts of the world: the necessity of reducing the tax burden, starting with hoe national governments deal with pressuring, with more and more force, the wealthiest people and also those who are not.
Offshore world specialists remember that everything...
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INTERSHORES I Development of Offshore
'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...
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INTERSHORES I Insurance
An offshore insurance company, usually referred to as a 'captive' insurance company, is usually a subsidiary of a large company or group of companies, and its purpose is to offer insurance within the parent company or group, thus saving external costs and generating profits in a low-tax jurisdiction. The fiscal benefits are not necessarily the driving factor, but they can be significant. Direct access to reinsurance is another important advantage of a captive.
Some high-tax countries have legislated to prevent excessive shifting of income to captives, but usually without seriously reducing fiscal benefits. Apart from offering tax savings, it is usually also true that an International...
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INTERSHORES I Licensing and Franchising : Royalty Collection
One of the most common uses of IOFCs (International Offshore Financial Centres) is for the collection of revenue from technology licenses, franchise fees, and royalties on other transfers of intellectual property. These types of payment often result from transfers of intellectual property from more advanced nations to less advanced ones.
Such payments are often subject to withholding taxes in the country from which they originate, and will get taxed, perhaps doubly, on arrival in the country of the licensor. Therefore an IOFC having good double-tax treaties with emerging markets countries, and not levying withholding tax on onward payments, will be a suitable location for an...
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INTERSHORES I Professional Services
IOFCs (International Offshore Financial Centres) naturally generate significant amounts of professional work in support of the offshore companies and trusts that are set up in their territories. While some of this is performed by nationals of the IOFCs, much necessarily falls into expert foreign professionals worked in IOFCs which make it reasonably easy for them to work locally.
Apart from IOFC’s 'offshore' professional activity, IOFCs are also an attractive location for professional firms offering their services internationally without physically living there. Engineering and management consultancies are key examples.
The advantages of professional services include low local...
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INTERSHORES I Corporate and Financial Management
The corporate headquarters of large groups tend to accumulate a variety of support services, which are often priced into the base costs of the group's products and services, and then attract margin in the final price to a customer. The profit realized by the group in this way is of course taxed at whatever local rate is applicable.
The evolution of telecommunications, most or all headquarters' functions can be carried out almost anywhere, and there is extreme competition to attract them between IOFCs (International Offshore Financial Centres) and high-tax jurisdictions as well, all wanting the prestige and the economic benefits stemming from the presence of a group of highly-paid...
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INTERSHORES I Financial Holdings and Investment Activities
There was a general perception that multinationals route investment or ownership holding and investment by IOFCs (International Offshore Financial Centres) due to low computer technology or lack of modern telecommunications in the old days.
The evolution of modern telecommunications and evolution of financial infrastructure of some IOFCs had changed the offshore climate allowing many SMEs or new biz businesses to enjoy tax advantages. For example, there are around 500 banks there to reduce their own tax bills and to service the needs of corporations that want to lower their tax burdens. A very wide variety of corporate financing and investment purposes offshore listed below:
1. ...
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INTERSHORES I Singapore Quick Fix
Compared with other jurisdictions, what is unique in of Singapore ? Why should people put money there?
Ranked as one of the world's easiest places to do business and one of the most competitive Asian economy, Singapore has world-class business and banking infrastructure. Tax system is territorial and the rates are relatively low with attractive tax incentives and exemptions for business to operate.
What are the most popular financial services in Singapore? How can they protect the interests of investors?
With "AAA: rating, with world's top banks and financial institutions establishing their presence here, Singapore is an international financial centre with well established law to...
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