We are often asked Where is the best place to incorporate my tax free Offshore Company?
It may interest you to know that to date over 75% of all clients have chosen to incorporate their nil tax Company in Hong Kong.
Hong Kong is a terrific jurisdiction in which to house a Company in that:
1. HK does not tax its Companies on income earned outside of Hong Kong
2. HK companies are not widely perceived as “Tax Haven” companies
3. There is so much money flowing out of China via Hong Kong to places like the US and Europe on any given day that payments from a HK company to you are unlikely to attract regulatory type inquiry.
4. Hong Kong is the gateway for investment into China and ideal location for your international headquarters if you aspire to sell your products or services in China
5. Hong Kong is nowhere near as regulated as other big financial centres. Many businesses/companies that would otherwise require special licenses elsewhere to do business can operate in and from Hong Kong as of right.
6. (If you aspire to live in Hong Kong) work/residency permits are relatively easy to obtain once you register a Company/Business in Hong Kong.
7. Hong Kong has a highly educated and relatively inexpensive work/labour force.
8. Availability of high quality professional and ancillary services: Historically Hong Kong is the New York of the Orient and hence offers access on the ground to high quality law firms, Banks, Finance/Accounting Professionals etc.
9. Hong Kong doesn’t levy CGT (Capital Gains Tax) and does not impose WHT (withholding tax) on payments made by a HK Company to person/entities resident outside of HK which makes a Hong Kong Company an ideal structure for holding shares in other companies or as an IP holding entity
10. Incorporating in Hong Kong will give you access to THE widest selection of banks. (A number of banks will not accept “island tax haven” type Companies as customers including all Hong Kong Banks and several noted European banks)
Additionally a Hong Kong Limited Company isn’t classified as a for offshore use only corp and thus, at Incorporation, it is given a Business License PLUS a local tax number. Internationally more and more suppliers are asking to sight a tax ID before they will do business with you. Not all Offshore jurisdictions can or will supply a Tax Number.
(and if you run a website business you might like to note a Hong Kong Company is the only zero tax company we are aware of for which Paypal will supply a Merchant account)
To set up a Hong Kong Company may not be as expensive as you think. With OCI you can incorporate a nil Hong Kong for as little as $US2,500.
Would you like to know more? Then please Contact Us: