The Benefits Of Establishing Offshore Hong Kong Companies

By Author: Abbey smith
Total Articles: 353
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There are many reasons why people consider setting up offshore companies and there are also many jurisdictions to choose from. The tax relief and privacy that are afforded to the business and its owners are among some of the most popular reasons and Honk Kong companies offer both of these. Prices for establishing Hong Kong companies area reasonable especially when you consider the very strong reputation the country has for managing its IBC commitments.

The formation itself costs around £1,500 and is usually complete within a week. In order to enjoy incorporation in Hong Kong you will need one director and one shareholder although they do not need to be local or resident. A company secretary should also be appointed, however, and they do need to be local to Hong Kong. You will not enjoy tax relief or other benefits on profits that earned within the Hong Kong borders.

For International Business Companies, all foreign profits attract a 0% corporate tax rate and corporate tax, generally, is low in Hong Kong too. 16.5% corporate tax, 15% for unincorporated companies, and between 2% and 17% for salaries are the standard ...
... tax rates payable in Hong Kong. As long as your profits are not earned locally, though, you will not need to pay corporate tax making it a beneficial and well respected tax haven.

Annual accounts are a legal requirement for Hong Kong companies. The company is required to file the return within 42 days of its anniversary of inception. While accounts are auditable and need to be filed they are not made publicly accessible so anonymity is still retained. Nominee directors and shareholders can be used and this further enhances the privacy that is afforded to the directors and shareholders of a company.

Hong Kong companies offer a beneficial and financially profitable way to run your business. The country has developed a very strong reputation for providing exceptional service and for being an economic centre. Privacy can be assured through nominee services and IBCs are exempt from corporate tax on any profits made outside the borders of the jurisdiction.

Visit OffshoreFormations247.com to find out more details on the benefits, costs, and timescale of setting up Hong Kong companies.