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The main benefits of registering an offshore company in Hong Kong

A company in Hong Kong or an offshore company in Hong Kong is an excellent solution for international business, as a company that is not included in any of the so-called FATF blacklists and complies with all G20 recommendations.

Hong Kong Offshore – General Information

Hong Kong is the leading international financial center of the Asia-Pacific region, one of the leading financial centers of the world and the most famous Asian offshore zone (so-called Hong Kong offshore).

Hong Kong is a special administrative region of the People’s Republic of China. Located on the Kowloon Peninsula, from the west, south and east washed by the South China Sea.

Since 1842 – a colony of Great Britain. In 1997, sovereignty was transferred to China. According to the law, Hong Kong was granted wide autonomy until at least 2047. As part of the “One Country – Two Systems” course, throughout this period, the PRC takes on issues of defense and foreign policy, while Hong Kong retains control over legislation, police, the monetary system, duties, and immigration policies, and also maintains its own representation in international organizations.

The economy of Hong Kong is based on a free market, low taxation and non-interference of the state. Hong Kong is one of the world’s leading financial centers, with headquarters of almost all the world’s largest corporations. Calculated at purchasing power parity, GDP per capita exceeds even the four leading Western European countries: (Great Britain, France, Germany, and Italy), as well as Japan.

The autonomous status of the territory allows it to fulfill the role of an offshore zone and a gate for investments and resources heading to the continent. Due to the very rapid economic growth, the region entered the top four “Asian tigers”, along with Singapore, South Korea, and Taiwan.

The population is about 7 million people. (2007) 
About 95% of the inhabitants are ethnic Chinese.

The official languages are English. 
The monetary unit is the Hong Kong dollar (HK $). 7.80 HK $ are approximately equal to 1USD

The country signed the 1961 Hague Convention.

Hong Kong Offshore – Key Facts

Chinese Businessman

Speaking of offshore companies in Hong Kong, they primarily imply the financial stability of the offshore zone, the absence of taxation when doing business outside Hong Kong and the need to submit financial statements. 

Type of company used for international business and investment:

Private Limited Company – a private limited company

Permitted activities

Offshore in Hong Kong is allowed to engage in any activity not prohibited by law (banking, trust, insurance, and reinsurance activities require licensing).

Requirements for the company

For an offshore company in Hong Kong, it is necessary to have a registered office and a secretary.

Company name

The name of the company in Hong Kong must end in Limited.

The authorized capital of the company

There are no requirements for the amount and mandatory payment of the authorized capital of a Hong Kong company. 
The proposed share capital of 10,000 Hong Kong dollars (HK $), divided into 10,000 shares with a par value of 1 HK $.

Bearer shares

A Hong Kong registered company cannot issue bearer shares.

Shares without par value

A company registered in Hong Kong cannot issue shares without a nominal declaration.

Shareholders and Directors

The minimum number of Shareholders is one (natural or legal person). 
The minimum number of Directors is one (natural or legal person).

Nationality and residence do not matter. Director and Shareholder can be the same person.

For your maximum security for a company in Hong Kong, we offer the services of nominee shareholders and directors. Nominals will formally appear in all major registration documents of an offshore company in Hong Kong, a general power of attorney will be issued to your representative (or you personally) to manage the company, in addition, a trust declaration between the nominal shareholder and the beneficiary will be issued, which confirms that the nominee shareholder owns shares of the Hong Kong company in your favor and without your consent has no right to take any action with them.

Secretary

In a Hong Kong company, a secretary must be appointed (natural or legal person, a resident of Hong Kong).

Meetings of Shareholders / Directors

Meetings of shareholders and directors of the company in Hong Kong can be held anywhere in the world.

Offshore in Hong Kong – taxation and reporting

Taxation

16.5% on profits earned in Hong Kong, 0% on profits earned outside.

The need for accounting

Yes, annually.

The need for an annual report

Yes, annually.

The need to provide an audit report

Yes.

Currency control

Missing.

What are offshore companies and tax havens

The revelation of the investigation called Panama Papers generated a scandal worldwide that involves political leaders, celebrities and athletes, who would have this type of accounts to avoid paying taxes.

Some 140 world politicians are involved in an investigation called Panama Papers, which reveals the creation of offshore companies in tax havens to evade taxes and hide assets. 

What is an offshore company? 

– Are companies that are established outside the country of residence 

– These companies are created in tax havens to avoid paying taxes 

– People or companies decide to make their investments in tax havens since the tax the burden is much higher in their countries of residence 

– Offshore companies obtain great tax advantages, confidentiality, and security

– These companies do not pay different taxes as they should pay in their country: inheritance tax, wealth tax, consumption tax, income tax (profits), etc. 

– The owner of the company is not even the real owner since in many cases they are front men 

– Their constitution is not illegal; however, these companies, which are relatively affordable and easy to build, can be used to hide assets, money from illicit activities or to hide money from the tax authorities or the public authorities of the countries of residence. 

What is a tax haven? 

– It is a country that exempts from paying taxes to foreign investors who hold bank accounts or constitute companies in their jurisdiction

– Citizens and companies resident in their own country are obliged to pay taxes. 

However, in these territories, they enjoy a total exemption or at least a significant reduction of taxes. 

– The paradises offer total confidentiality on the accounts to their clients, especially taking into account that they lack -or very laxly- have agreements with other nations to report on operations.