Offshore Company

Hong Kong offshore companies are established to serve different purposes. A Hong Kong company may be formed in order to gain access to offshore banking facilities, to trade overseas, expand sales in new markets, to protect assets and to avoid heavy taxation. Hong Kong offshore company is just right for doing any of these because of the provisions by which it is governed and the overall investor friendly nature of Hong Kong’s free economy.

Hong Kong offshore company is not a separate or special company that is incorporated as in an offshore tax haven, but rather a regular Hong Kong

company, usually the Hong Kong private limited liability company. Because Hong Kong’s economy is free and affords equal opportunities to locals and foreigners in terms of trade, business and favorable tax treatment, Hong Kong companies offshore can operate at an advantage.

This advantage of the Hong Kong offshore company is derived from the fact that Hong Kong taxes based in territoriality and excludes all income earned outside Kong Kong from all forms of local taxation. Hong Kong companies offshore are also internationally accepted and are ideal for penetrating Asian markets.

In the event that a Hong Kong company intends to do business in Hong King, this too is possible.

One of the most wonderful aspects of Hong Kong’s fiscal system is that corporate tax is relatively low at 16.5% and is applied at a flat rate across the board. Furthermore, tax credits are available for the Hong Kong offshore company that does business both in Hong Kong and offshore and may be subject to double taxation from the company needs to be relieved.

Upon incorporation, Hong Kong offshore companies are required to register a copy of their Memorandum and Articles with the Companies Registry. An incorporation form must also be completed and provide all requested information for incorporation and due diligence.

Information required to incorporate Hong Kong offshore companies include the name of the company, its liability, registered address, names and addresses of shareholders and directors, number of subscribed shares, name and address of the company secretary, the company’s authorized share capital and a brief business description. The shareholders and directors of a Hong Kong company offshore are required to provide a valid copy of their passport for identification, proof of residence and a bank reference letter.

Additionally, if the Hong Kong offshore company has directors and or shareholders that are corporate entities, that corporation must submit a copy of the corporate documents of the parent company, including a copy of its memorandum and articles of association and certificate of incorporation.

Hong Kong offshore company can be used as an offshore holding company whereby it covers the expenses and consolidates the tax obligations of smaller companies, so as to reduce tax burden and centralize control and management. Hong Kong offshore companies can be used to provide professional services in technology, legal advice, accounting and marketing services. Hong Kong offshore companies are ideal for ecommerce and broadening the market base of a business.

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