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.
Advantages of Hong Kong Company formation for offshore company
It would be remiss for a growing enterprise not to take advantages of the many attractive financial arrangements and benefits Hong Kong offers to offshore companies. Here are some of the reasons why more and more international business operations flock to this place.
• Although Hong Kong is presently under the administration the Government of the People’s Republic of China, it operates with the British legal system in the background. Therefore it will not be difficult for most companies across the planet to deal financially and politically with the Hong Kong government.
• Most of all, Hong Kong’s tax rate is very low. The government charges only around 16.5% on net profit.
• Businesses are not taxed for income earned outside of Hong Kong.
• Hong Kong uses a Nominee service system, which enables the beneficiary owner’s identity to be kept hidden from public company records.
• This city state does not place any restrictions in the transferring of fund from almost anywhere in the world.
• It is very near and had a stable relationship with Mainland China, undoubtedly the biggest consumer market in the modern world.
• Businesses thrive in this place because it has an established and fully functional international center of information and transportation hub.
• Businesses enjoy the convenience of Hong Kong’s international banking system.
• No need to draw up articles of incorporation because Hong Kong allows ready-made companies to operate.
Requirements of Hong Kong Company Formation
Hong Kong’s requirement for setting up an offshore company is relatively easy to satisfy. Here are the requirements:
1. Only 1 Hong Kong dollar is required for minimum subscribed share capital, although the typical amount is HKD10,000.
2. The registered address of the offshore company must be in Hong Kong.
3. The name of the offshore company must be the same as that of the one already registered. Its name must only be in English or Chinese or a combination of both.
4. Minimum requirement of 1 shareholder and director.
5. The shareholder and the director could be the same person.
6. One of the company secretaries (if there is more than one) must be a resident of Hong Kong or a member of a Hong Kong Limited company.
7. There are no restrictions on nationality for directors and shareholders.
For details of Hong Kong company formation, please visit bizformation.org for details.
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