The advantages of company formation in Hong Kong are many, and the following is an introduction to just five of them. Company formation in Hong Kong can be a straightforward process if the correct procedures are followed. Below are the main reasons why it is advisable to consider company formation in Hong Kong when you wish to establish an offshore company:
How to form a company in Hong Kong? A company formation in Hong Kong will give you the benefit of enjoying many tax benefits, including exemption from income and property taxation. You will also benefit by enjoying several other services, including the ability to pay income tax on a freelance basis, claim expenses against personal assets, and take advantage of corporate taxes and personal tax deductions. Also, the company formation process in Hong Kong will enable you to manage your business affairs only instead of hiring and paying staff to do this job for you. It can prove to be a precious tool for any business owner or individual who wishes to run their business more conveniently and efficiently.
Another benefit to consider is that you will establish a limited liability company, which is a must for anyone wishing to open a business in Hong Kong. Limiting your liability is a significant benefit as it makes it easier to get loans and settle debts when your business becomes bankrupt. Having a Limited Liability Company also enables you to benefit from the law that allows companies to be set up in Hong Kong even if they do not have any assets whatsoever.
If you wish to establish a Limited Liability Company in Hong Kong, you will need to obtain a ‘Registered Office’. Registered Office’s an office where all your official documents will be filed and where all your transactions will take place, such as paying taxes and registering trade contracts. You can choose to use either the post office or a bank, but we recommend using a bank as you will be able to transfer funds to your company at any time. When you have a registered office, all of your company operations will be conducted through your address so that all official correspondence will go through your speech. Your company formation in Hong Kong will only be processed and granted after you pay the registration fees.
The next step on how to form a company in Hong Kong is to select a company name. If you cannot find the right name for your company, you may want to consider purchasing a domain name, but this option is very costly. You will have to make the payment for the domain name via credit card, and then you will need to pay a yearly maintenance fee to keep the site running. If you are going to purchase a domain name, we recommend buying it from a company specialising in selling domain names.
After you have paid for your domain name, the next step in forming a company in Hong Kong is to register your business. It will require you to complete an application called ‘Certificate of Registration’. Your company will be required to submit a set number of documents to prove that your business is legal and that you are the sole proprietor of the business. These documents include bank statements, copies of contracts, and any other papers that the authorities may require. If you are still unclear on forming a Hong Kong company, you can ask for assistance from a local attorney. The attorney will help you apply for the necessary government permits, and he will also guide you in registering your business.
The next step in forming a company in Hong Kong is to hire a registered office’s services. Your registered office will allow you to register your business with the relevant government departments. It will also help you obtain the needed licenses and registrations, such as a tax registration. You should make sure that your registered office has a business address in the government department’s administrative area where your business will be operated.