6 Main Benefits of Forming an Offshore Company in Hong Kong
Have you ever dreamed of forming an offshore company? In the competitive business world, several people are setting up an offshore company in order to experience the maximum benefits associated with it. Still in a dilemma, whether to form it or not?
Well, if you are a serious entrepreneur who wants to make their name in the global race, then consider offshore companies on your radar. But the real question that arises this moment, where you should incorporate it to operate it effectively.
Many people think that it is better to invest in the Asian regions, but ‘where?.’ If you are worried about the location for your offshore company, then ‘why don’t you look Hong Kong?’
Curious to know about why we are saying you for forming an offshore company in Hong Kong? Keep on reading the article; we have gathered all the essential information about our statement.
Let’s dive into the article-
Why choose Hong Kong?
- Do you want to know the reason to choose Hong Kong as the baseline for your offshore company?
- What is it about the place that lures foreigners to set up an organization here?
- Why wouldn’t anyone want to be a part of the cities that has one of the best economies in the world?
The answers to all the question are pretty straightforward. Being the freest economy of the world, and the perfect gateway to enter in the Mainland China and Asian markets. Moreover, the place is considered one of the best cities to establish and run a business, as it scores high on factors that matter to businesses. What’s more, below shared are some of the factors that continue to contribute to its success-
- Friendly business environment
- Tax benefits, infrastructure
- Ease of opening a company remotely
- Ease of obtaining investors
- Strategic Location
- Business Support & Assistance
As a matter of fact, in the globalized world, before setting up a business, you need to be aware of all the benefits of every area in the world. So, after doing all the research work, we have concluded that Hong Kong is one of the best areas for the formation of an offshore company.
What’s more, it also provides a global community, political and economic stability, no foreign exchange controls, and the relatively easy establishment of international corporations.
Let’s take an example-
Suppose you are operating a cement industry in California. While operating that company, you may find some problems in order to have an international corporation.
On the other hand, if you want to start any kind of global commerce especially considering the better economies in emerging markets like Asia. In that case, you need to have a solid base of operation. That’s another reason why you may choose Hong Kong for conducting your business.
Are you ready to embark into the competition of Hong Kong as an offshore company? Great! Keep on reading the article to know more benefits about forming an offshore company in Hong Kong.
6 Main Benefits of Forming an Offshore Company in Hong Kong
The most common reasons for setting up an offshore company in Hong Kong are:
#1 Ease of Offshore Company Setup
The first and foremost benefit of forming an offshore company in Hong Kong is the ease of setting up. In the competitive business world, it is the first problem faced by several entrepreneurs. However, when setting up a business entity in Hong Kong, you don’t need to worry about this factor.
Launching the business in Hong Kong is very simple, secure, and astry from all the unnecessary bureaucracy or re-tape. Besides, Hong Kong also follows favorable foreign ownership by just entitling the company shares to be 100% foreign-owned. In fact, there is no requirement of any special authorizations prior to the Hong Kong company setup.
#2 Tax Benefits
As a matter of fact, Hong Kong simple tax code and relatively low taxation make it one of the most business-friendly environments in the global business world. The corporate tax rate in Hong Kong is 16.5%. Neither you need to pay capital gains tax, nor withholding tax on interests or dividends and most importantly, there is no VAT/GST, and no estate duty.
In addition to the above benefits, the foreign-sourced income is also exempted from tax in Hong Kong, and you don’t have to worry about foreign exchange controls in Hong Kong. Therefore, the income derived by the Hong Kong offshore company is free from tax liabilities in Hong Kong. And this is the best benefit of forming an offshore company in HK.
#3 Political stability
Another benefit of forming an offshore company in Hong Kong is political stability. In Hong Kong, there is direct contact with the investment climate and political stability. Despite being a Special Administrative Region of China, Hong Kong is successful to retain its economic, judicial, and economic systems. As per the survey conducted by the Political and Economic Risk Consultancy, Hong Kong has emerged as the second-best bureaucracy in Asia.
#4 Trusted Image
Everybody wants to incorporate their business in that place which is known for its trusted image in the global business world. Hong Kong’s clear and simple business rules are the keystone of their economy.
And just because of their foundations, Hong Kong is often famed as being an offshore tax haven. In fact, this statement is also endorsed by the OECD.
Being committed to the international standard on tax information and exchange, Hong Kong has the best-trusted image. As a result, an offshore company in Hong Kong is not viewed negatively or with suspicion.
#5 Reduced Administration
Well, the legal obligations of any officers or directors of an offshore company are much less in Hong Kong. So, you don’t have to take a lot of burdens just to hire the officers or directors for your business entity in Hong Kong.
Moreover, the requirement for accounting, other staff or a physical office can also be overcome with cost-effective virtual office services – saving time and money.
#6 Asset Protection
There is no denying the fact that trusted image in combination with the protecting assets leads to lower levels of income, capital and death taxes, that would otherwise be payable if the assets were held directly.
Whether you want to keep your business interests private or to be secure against future claims such as judgment creditors, bankruptcy, and other litigants from adverse competitors, adverse claimants, and other parties, the formation of an offshore company in Hong Kong would be your best perspective.
How Startupr Helps?
Now that you should have a better idea about the benefits of forming an offshore business in Hong Kong, and why several people are inclined towards this place. If you are a serious entrepreneur who wishes to scale their business in the competition, then just follow all the legal obligations and hire professionals to complete all the tasks for your business.
And Startupr can help you in doing that efficiently. Therefore, instead of spending time and traveling, get your company opened sitting in your home country with the help of us.
Nevertheless, we would also assist you with the tax forms and annual return filing for the bank account opening.
To be more precise, we can help you with everything, and you would not even need to visit the country. Startupr provides you with the Backoffice. It automatically checks for errors or problems as you complete applications.
Hire the best to get the best services! Hire Startupr!