Company formation in Hong Kong can be used for many different business purposes. There are many advantages and benefits of company formation in Hong Kong compared to company formation in any other country. One of these is the complete lack of tax and regulatory obligations. There is no need to pay any tax on the profit that a company makes in Hong Kong. There is also no need for a distributor or franchise fee or any other such payments.
However, there are some other advantages as well. One of these is the ease with which an offshore incorporation scheme in Hong Kong can be started. You require no legal fees, which means that you don’t have to pay any other tax on the profit you make from your Hong Kong offshore company set up. Another great advantage is this is an easy method to access funds too.
Once you have decided to establish an offshore company in Hong Kong, the next step is to choose your new company’s name. One of the best ways to select your company’s right name is to check out some famous words related to your business sector. For example, if you deal with property, you could choose to set up a company called just property investing. If you trade in financial services, you could pick something like managed funds or investment management.
Before choosing a name for your offshore company formation in Hong Kong, you must ensure that it is not considered inappropriate or damaging to do business in Hong Kong. Some of the things you would consider inappropriate include anything that may cause possible confusion when people do not get a clear picture or context of what you are marketing or selling. Besides, the use of words or terms that are specifically offensive towards local consumers’ local culture or feelings can also be deemed inappropriate. Suppose you wish to register your business with the Companies Registry. In that case, you must ensure that the company name you choose will not offend the local authorities or Hong Kong business owners.
Another important consideration for choosing a name for your foreign company incorporation in Hong Kong is to ensure that you will benefit from the Chinese jurisdiction’s tax benefits. There are several benefits to registering your business with a foreign company incorporation firm. The first and most obvious is that you can enjoy low taxation. Every country has a different tax system, and some have lower tariff than the other countries. However, for most offshore company formation in Hong Kong, you will enjoy more than 50% tax reduction over mainland China.
You also have the option of enjoying certain tax benefits, depending on your circumstances. For instance, individuals who reside or work outside of China will find the income tax rate applicable to them is lower than the one applied to an individual who lives in China. It is especially true if the individual’s job is closely tied to his home country. Moreover, an offshore company set up in Hong Kong will benefit from the Chinese government’s several business incentives. These include tax holidays, free access to the China stock market, and various industrial benefits, including low labour costs.
Additionally, when you decide to incorporate it in Hong Kong, you will have the convenience of doing so from the comfort and privacy of your own home. You will not have to move out of your current location as you would have to do in a mainland company setup. Finally, when you set up your offshore company set up in Hong Kong, you will enjoy the same tax benefits available to individuals working within the Chinese mainland. Thus, incorporating in Hong Kong will provide you with all these advantages for a very minimal cost.
It would help if you chose a highly experienced professional to help you in the incorporation process. Such an expert could help you deal with the paperwork and provide you with valuable advice. Alternatively, it would help if you also tried to learn about the low tax rates applicable in Hong Kong and how it could be advantageous for you. Offshore company formation professionals could handle all these things.