Easy Ways to Form a Company in Hong Kong and China
The reasons are diverse as to why investors set up shop in the city. The opportunities provided by the offshore company registration are not different from other offshore location. Investors running no business operations on the Island can enjoy a tax free haven when they start a company in Hong Kong and China.
It is cheaper to start and register a company in the cities since company registration in the cities is relatively loose. This culminated in making the cities the most ideal locations for making shell companies. It is indeed very cheap to start a company in these cities.
In this jurisdiction, it is not always safe to deal with shell companies.They mostly lack any physical presence in the city.In the event that a dispute emanates from any transaction, it is not possible to remedy any problem on the island in case a dispute arises. Transacting from China poses no security concerns since you are considered as transacting from Hong Kong.
There are numerous companies that choose to open bank accounts in foreign banks. The reason behind this is that state run banks tend to be overly strict in opening company accounts. Having an account in the state run banks is very safe. It will be much easier to launch a complaint.
Opening a Hong Kong offshore company has the benefit of the presence of big international banks. There are so many branches that the banks have. Many business operators easily trust these banks.
Another important thing to understand is that Hong Kong and China lack exchange control. After making the deposit, the banks do not charge any money in terms of withholding fee. It is very easy to deposit.The same case applies to either withdrawing or transferring the funds. There are no fees or charges that the banks deduct.
Again, banks in this location guard a customer’s information with unequal zest. A customers prior consent is required before disclosing the information.This law is however exempt for customers involved in criminal activities as required by international law.Such criminal activities include money laundering and other related crimes.
Forming a Hong Kong offshore company is easy. It is not required for you to go to the Island in person. You will enjoy a tax haven and there is low tax rate. Your company will no doubt benefit from a proper legal system.Again, foreigners not running businesses in the city are also bound to enjoy the safety without fear. Forming a company in Hong Kong and China is not hard.