Hong Kong is amongst the busiest cities globally, with an economy estimated to be $ Shaipan annually. Hong Kong is also known as the “Ikea Market” owing to its enormous shopping malls and its giant outlets. The high living costs and high demand for retail clothing have resulted in Hong Kong being the leading retail market for many companies. If you are looking to invest in a business in Hong Kong, then you would do well to look into the benefits of company formation in Hong Kong.
One of the first advantages of Hong Kong company formation is the obvious taxation exemptions. Hong Kong has one of the lowest corporate tax rates in all of Asia. The company’s secretary and accountant can save a lot of money by incorporating one director, two shareholders, three-member company. However, it is always advisable to have only one director and one shareholder as it will be easier to carry out your tax requirements. A sole director and shareholders will be subject to double taxation.
In addition to this, if you incorporate in Hong Kong using an offshore formation service, you will enjoy many benefits not available in other countries. The first of these is that the corporate tax rate in Hong Kong is much less than anywhere else in the world. By incorporating through an offshore formation service, you will enjoy the benefits of having no corporate tax and no import duties. With the current economic situation where every country is recovering from the recession, it makes sense to incorporate your business somewhere where you won’t be affected by these economic conditions.
Before choosing any company registration service, it is good to know the basic requirements for Hong Kong company registration. Three primary conditions apply to all foreigners wishing to open a business in Hong Kong. These include:
Firstly, foreign businesspeople should ensure that they comply with the Basic Requirements for Company Registration in China. These requirements include paying the prescribed corporate taxes as well as the corresponding administrative fees. Foreign companies should also obtain a certificate of Import and Export from the Chinese Customs. To get the certificate, you must apply in writing to the Office of the Provident Fund and the Customs.
Secondly, Hong Kong company formation’s basic requirements include a capital gains tax and a foreign tax ID number. There is no personal income tax in China, but corporate profits tax is applied by calculating its net income from its assets and liabilities. Foreign business people must pay the corporate profits tax once every four years. The third requirement is the annual registration fee. It can be paid by credit card or by payment through online banking. If you pay the registration fee via the internet, you need to provide the credit card information and identification number.
The fourth requirement for a company in Hong Kong is that it should be registered in its name. For this, you need to purchase a post-office account number. Besides, there are three key benefits of owning an offshore company in Hong Kong.
First, you can easily do business in Hong Kong as the tax rate is meagre compared to other cities in the world. Second, you do not have to get an agent to deal with the foreign exchange. Last, you can save a lot of money by dealing with an offshore company. The key benefits of company formation in Hong Kong include the absence of all the hassles involved in the registration and trading of an international company. Besides, you can easily make lots of savings by dealing with an offshore company.
Hong Kong company formation