Hong Kong has recently concluded an economic agreement with Mainland China. The agreement is called Closer Economic Partnership Arrangement or CEPA. This agreement facilitates access of Hong Kong’s manufacturers and suppliers of products and services to the huge Chinese market.
Good Economic Times Ahead Between Hong Kong and China
Under the CEPA, the Chinese government is committed to simplifying procedures and strengthening cooperation with Hong Kong on customs clearances, quarantine and inspection, quality assurance and food safety and to facilitate investment. Continue reading
To attract more investors in Hong Kong, its government did not require stringent rules for the setting up of offshore companies. The process is rather easy and very straightforward. It is the same whether it involves buying an existing company or starting a company from scratch.
First Things First
But before you start thinking of setting up your offshore company in Hong Kong, you need to do some preliminary thinking first. You need to think about the following things: Continue reading
Being an international city, Hong Kong has an enviable position. Because of its attractive and stable financial and political climate, many businesses around the world are setting up their offshore companies in this place.
It has evolved as a very important business center in the Asia-Pacific Region. Even when the administration of the country was reverted back to Mainland China, its surge towards the top of the financial heap continued unabated. Continue reading
One thing that is permanent in this world is taxes and more taxes. That is the reason why you can’t blame the top 500 Fortune Companies to use offshore companies to somehow reduce the tax they are forced to pay in the countries where they operate.
Tax Reduction is Mainstream
A report by two public advocacy groups in the United States revealed that as of 2013, over 70 per cent of Fortune 500 companies maintained offshore companies in tax haven countries just to reduce the tax they are required to pay to the U.S. Treasury. Continue reading
Offshore company formation is a very old tax trick that businesses, big and small, have been using since time immemorial. However, in recent times, all kinds of taxes are being exacted in the United States forcing an increasing number of businesses to search for tax havens such as Hong Kong and the Cayman Islands to reduce their tax obligations.
Seeking Help from Abroad
It is ironic that when many countries all over the world are reducing their tax rates, the reverse is happening in the United States. This tax related issues are taking place as the U.S. Congress remains to be unwilling to lower the tax rate to 35 per cent. Continue reading