Hong Konga Offshore Guide
A large number of Hong Kong offshore companies are thriving in Hong Kong, a special administrative region of the Republic of China. Facing the South China Sea in all three directions – east, west, and south- Hong Kong has more than 6 million in population. It has been under the United Kingdom for 155 years, before it was turned over to China in 1997. Hong Kong is a global city that is known for its capitalist economy, and centers its economic activities on international finance and trade. Majority of the residents of Hong Kong speak English and Chinese, and the political situation of the country has been considered to be stable during recent years.
One of the advantages in the incorporation of Hong Kong offshore company is the attractive taxation system for businesses that do not derive profit through the use of Hong Kong resources, as is the case with offshore companies. So long as the income is derived outside of this region, offshore companies are not liable to pay any corporate taxes, whatsoever. Moreover, offshore activities are highly confidential in Hong Kong, maintaining privacy on tax information and records of owners, directors, and shareholders of the business. In the political and social sense, Hong Kong has continually enjoyed stability over the years.
Considered as one of the four Asian tigers along with Singapore, South Korea, and Taiwan, Hong Kong is a commercial hub that provides excellent business solutions and support. These are very good conditions when considering the set-up of Hong Kong offshore company. This provides exceptional resources at a more reasonable cost, seeing that taxation for offshore companies are not legally mandated. Although 17.5% in taxation is normally levied on businesses deriving income from Hong Kong shores, an offshore business is normally exempt from this, if it does not profit from any resources within the region.
Establishment requirements for Hong Kong offshore companies typically consist of the following: minimum of one shareholder and director, a minimum subscribed share capital, a recorded address in Hong Kong, a corporate secretary that must be a resident of Hong Kong, and a company name that must be submitted for approval. It is allowed for director and shareholder to be one and the same person, and both can be of any nationality. The company name must be unique from all the other business names registered with the provider, and should either be English alone, Chinese alone, or English combined with Chinese.
With the efficiency and optimistic image of the Hong Kong economy based on global standards, this location continues to be an outstanding option for offshore businesses. Taxation remains to be very constructive as well, especially for non-resident businesses that do not utilize Hong Kong resources for their profits. Setting up such offshore establishments does not discriminate nationality or location, since anyone can enjoy the benefits of instituting offshore businesses after meeting the stipulated requirements. With the positive direction that the economy, politics, and social sphere of Hong Kong are heading, there is every reason why Hong Kong offshore companies should achieve greater recognition in the future.