Whether you’re planning to setup a new business or open a branch office, Hong Kong remains to be one of the best countries to do so. This place is famous as a go-to location for different types of offshore company formation. It’s also one of the leaders in finance and business, which would mean it’s an excellent jurisdiction for business incorporation.
For many company owners, Hong Kong is a fertile ground for a business that specifically targets the Asian market. Aside from the truth that Hong Kong is known to be politically stable, it is likewise a great place for the company to secure its wealth.
The following are some notable reasons why establishing a business should be done overseas:
Affordable and Easy Formation Process
Although it’s possible, DIY is not recommended especially if this is your first time to register an overseas company. Experts recommend hiring the services of a professional company registration service provider that specializes in offshore company formation. Generally, the cost of setting up an offshore company would depend on the level of service and reputation of the service provider. Also, remember that there are recurring yearly or monthly charges to keep your business registration.
The best thing about registering in Hong Kong is that it’s relatively cheaper compared to establishing an offshore business in other places. The fee covers company registration, secretary charges, registered address and other government fees. The entire registration process will be finished within 5 to 7 days. When opening offshore bank accounts, it’s important that you are present. This process would take 1 day only.
Favorable Tax System
Hong Kong-registered businesses are non-taxable provided their business transactions were made outside of the country. However, if you’re doing business with suppliers or clients who are residing in Hong Kong, a 16.5 percent tax will be applied. For those who won’t be doing any business transaction with anybody in Hong Kong, you’ll be eligible for the “offshore” status.
Going Global with Solid Reputation
Other places may be abundant in lush grounds and beautiful surroundings, but they’re nowhere near Hong Kong when it comes to having a solid reputation as a first-class business or finance center. Nothing compares to Hong Kong’s high profile offices and banks.
When choosing the right location for an offshore business, select one which can give your organization an additional boost in terms of global reputation and trust. In this case, most business owners will admit that Hong Kong would unanimously win. Another important thing is that this place is not regarded as tax haven. It’s a fact that establishing a business in a jurisdiction which is known as a tax haven could adversely affect the reputation of your company.
Deduct Taxes as Write-Offs
You won’t be paying much business taxes in Hong Kong since the tax authorities are lenient when it comes to write-offs. It’s one of the reasons why worldwide companies are drawn into this place. Business travel and meal expenses can easily be written-off. Just make sure you’d sparingly ask for write-off requests so the authorities will grant the same without question.
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