Advice and help how to set up an offshore company in Hong Kong
Starting a honk kong offshore is a great way for entrepreneurs to seize the opportunities offered by the dynamism of the economy.
The advantages of offshore company creation in Hong Kong:
- Ownership of intellectual property rights
- Internet Commerce
- For the custody of movable and immovable property
- Consultants / Consultants
- Developing business in mainland China
- Financial market / Forex brokers
- International trade
Characteristics and steps for the creation of an offshore company in Hong Kong:
Type of society- Limited Liability Company.
Corporate legislation- The Hong Kong Register is the authority governing companies. These are regulated under the 1984 Hong Kong Companies Ordinance.
confidentiality- Hong Kong offers a high level of anonymity and confidentiality.
Published information relating to corporate officers- When registering a company in Hong Kong, the names of company officers appear on the public register. However, named directors can be used to prevent the client’s name from appearing.
Accounting requirements- The preparation of bank accounts is necessary. Accounts are not accessible to the public.
Taxation- No taxes on foreign-source profits for a company registered in Hong Kong
tax system- Modern offshore legislation
Change HKD- Accounts can be in any currency.
Financial environment- International Offshore Financial Center
Stability- The jurisdiction is stable and enjoys a very good reputation
Communication- Effective communication
Time zone- GMT +8 time zone
Capital Requirement- No requirement to release capital for establishing a business in Hong Kong
Basis of the legal system- In accordance with the “common law”
Minimum shareholders/directors- A minimum of 1 director
Bearer shares- Bearer shares not allowed in Hong Kong company
Here are the main advantages to remember about registering an offshore company in Hong Kong:
- No corporate or profit tax if you do not trade with other local companies
- No VAT
- No estate tax on shares held by non-residents
- Only one person is needed for the constitution of the company
- No minimum capital to form the company
- Guaranteed anonymity of shareholders and directors
- Bank secrecy is respected
- Register your company in 7 days
- Perfect transparency vis-à-vis your customers and suppliers
- The best fame and image in the midst of offshore and international companies
Finally, an important point: you do not have to live in Hong Kong to start a business or to do business there.
Signed tax treaties that will help determine whether the creation of an offshore company in Hong Kong is an optimal choice for you:
Hong Kong has signed the following tax treaties :
Double taxation treaties are in effect between Hong Kong and the following countries:
Austria, Belgium, Brunei, China, Hungary, Ireland, Japan, Liechtenstein, Luxembourg, United Kingdom, Thailand, Vietnam
Double Taxation Agreements between Hong Kong and the following countries have been signed but are pending ratification:
France, Czech Republic, Indonesia, Kuwait, Mainland China, Netherlands, New Zealand, Portugal, Spain, Switzerland.
Hong Kong has also signed double taxation agreements on aviation and shipping with a number of countries. (although some of these agreements have been replaced by full agreements).
Countries with which Hong Kong has signed these limited double taxation agreements:
Bangladesh, Belgium, Canada, Croatia, South Korea, Denmark, Ethiopia, Finland, Germany, Iceland, Israel, Jordan, Kenya, Kuwait, China, Mauritius, Mexico, Netherlands, New Zealand, Norway, Russia, Singapore, Sri Lanka, Sweden, Switzerland, United Kingdom, United States.
Particularities of the treaty with Belgium
In accordance with the Convention signed between Belgium and Hong Kong, the maximum rate of withholding tax is:
- 0% if the percentage of shares held is 25% minimum for an uninterrupted period of at least 12 months.
- 5% if the percentage of units held is at least 10% (no limit on the holding period of the units).
- 15% in other cases.
Interest: 0% on:
- Interest on trade receivables resulting from the forward payment of goods, products or services provided by an enterprise.
- Interest on receivables or loans of any kind (not represented by bearer securities) paid to bank companies.
- The interest of deposits of money made by a company with a banking company.
- Interest on certain loans related to the governments of Hong Kong or Belgium.
- 10% in other cases
- Royalties: 5% in all cases.