Company formation in Hong Kong is considered one of the easiest ways to start a business. However, it is essential to understand the benefits of company formation in Hong Kong before jumping into the industry. It is advisable to consult a chartered accountant before starting any business to ascertain the exact tax liabilities to be incurred. There are also several legal stipulations to be complied with to ensure that your business operates legally. One of these is ensuring that you have sufficient shares listed in your company.
There are numerous benefits of Hong Kong incorporation services. One of these is that there are no corporate taxation and stamp duty payable when incorporating a company. Another advantage is that there is no income or wealth tax to be paid on any assets transferred. Company formation in Hong Kong also offers numerous short-term benefits such as paying for a business insurance policy, paying for office space, paying the annual taxes for employees, and receiving the tax refund on profits.
Company formation in Hong Kong is usually carried out through the Companies’ House of Hong Kong. This agency is empowered with the power to conduct company registration, issue company seals, and issue company licenses. The Companies House also maintains the register of companies and updates its records regularly. Besides, it is responsible for overseeing compliance with the law by the corporate community. Given that Hong Kong has one of the most comprehensive tax systems globally, there is no need to rely on the statutory system when conducting company affairs.
One of the primary reasons why most new companies choose to establish a business in Hong Kong rather than offshore is the ease with which the process can be completed. Company formation in Hong Kong takes a shorter time than the exact processes involved in international company registration. Besides, the legal system in Hong Kong is very simple and straightforward, especially compared to that in countries like the US and UK. Given these factors, Hong Kong offshore company registration is now preferred by more business firms.
A company secretary plays a vital role in offshore company incorporation services. Together with the company secretary’s assistant, this person performs the company secretary’s various tasks. Among other things, they maintain the records of all company meetings, correspondence with other companies, company assets, etc. Company secretaries also conduct company secretaries’ responsibilities in arranging company payroll.
On the other hand, a company secretary cannot be considered an integral part of Hong Kong company incorporation services. The company secretary is usually the representative of the business investors in Hong Kong. A business investor would likely appoint a company secretary (or a few company secretaries) as part of his employees to manage his business. In effect, business investors would be entrusting their business operations to their employees in Hong Kong.
As already mentioned earlier, Hong Kong offers several attractive benefits to businesses that register themselves as corporations there. For example, a company incorporating in Hong Kong can enjoy tax benefits by paying corporate taxes at the national level and paying corporate taxes at the locality level. Moreover, offshore company incorporation in Hong Kong will enjoy several advantages under the HMRC laws (HM Revenue and Customs). Among other advantages, a company incorporated in Hong Kong can benefit from tax laws related to its permanent establishment abroad (parasitic investment) and its incorporation in a European Union member state.
Hong Kong incorporation services