What are the benefits of company formation in Hong Kong? There are many. One of these is that companies have a legal identity in Hong Kong. It is essential for the same reason why there is so much interest in establishing an offshore bank account or another financial entity. Companies have the legal right to operate under a brand name they have created.
There are many benefits of the Hong Kong Offshore Company Formation. It means that no two companies will have the same business model. Two companies might have the same business address but have different directors and different shareholders. To comply with the Chinese authorities’ regulations and rules, an international business person will do well to register his company in Hong Kong.
It brings us to one of Hong Kong offshore company formation’s significant benefits: the lowest corporate tax rate in the world. It is essentialto consider that Hong Kong also has some of the world’s highest labour costs. You can save a lot of money on payroll taxes by taking advantage of a company’s lower corporate tax rate. Besides, you won’t have to worry about paying the hefty custom charges imposed by the Chinese authorities if your business makes it to their offices.
Another benefit of company formation in Hong Kong is that the government subsidizes business expenses here. The British and US governments have different policies regarding this, so it is best to check them. There are also many subsidies granted to those companies that set up manufacturing facilities in Hong Kong.
Companies in Hong Kong can also avail of certain privileges not offered to their foreign counterparts. One of these is that an international person in business need not provide any office space or secretary if his company only has one director and one shareholder. He only needs one nominee in the event of an absent director. Moreover, the company formation process in Hong Kong does not require you to pay any stamp duty or registration fees.
When you look at the costs of establishing a new company in Hong Kong, you might think that there is no reason to bother. Hong Kong offers excellent deals in banking services. The most common type of banking facility available to a new Hong Kong company is a standard bank. You can open an account with a local bank and use it for your business purposes.
Another advantage offered by Hong Kong offshore company formation is that you don’t have to pay any stamp duty or tax on your profits. If you operate a manufacturing company and if your business makes more than twenty million dollars every year, then you will be able to enjoy tax benefits of more than two hundred thousand Hong Kong pounds. It is because you can issue share capital and dividends to your employees and receive a prorated remuneration. If you issue dividends, then you are liable to remit tax on these.
The corporate headquarters of most businesses in Hong Kong are usually located in the Central business district or the finance district. Many new establishments are being established in the finance district, mainly because most government offices are located. Hence, it is easier for businesspeople to obtain permits for commercial activities such as property development, industrial set-ups,etc. One good thing about Hong Kong company formation is that you need to apply for a local office permit. Thus, all you need to do is to open an offshore company and make the necessary arrangements.
Hong Kong Offshore Company Formation