Why open an offshore company in Hong Kong? The fact is that in the business world, competition is constantly growing, and businesses are forced to devise strategies to stay ahead. But before you make your mark and start building long-term relationships with international partners, we recommend learning about all the benefits of Hong Kong business.
Do you want to know why it’s worth buying a business in Hong Kong? Keep reading this article, where we’ve gathered 7 solid arguments for setting up a Hong Kong company.
During consultations, we often have to answer these questions:
How will an offshore company in Hong Kong help me grow my business?
Why do businesses choose this city for company registration?
What prospects does an offshore in Hong Kong offer?
The answers to all the above questions are quite simple. Being the world’s freest economy and an ideal place for easy access to Asian and Chinese markets, Hong Kong offers entrepreneurs opportunities that are not available within their own countries.
Moreover, it’s recognized as one of the best places to start and run a business. Businesses have already been able to appreciate all the advantages of the city. By opening a business in Hong Kong, you get:
Having worked with various jurisdictions for many years, we’ve concluded that, in addition to all the above, Hong Kong can provide economic and political stability, and the absence of currency control and a developed banking sector helps companies expand their partner network.
So, if you want to start any global international activity and create a strong foundation for the future, you definitely need an offshore company in Hong Kong. Below we present 7 main advantages.
The first and perhaps most important advantage of registering an offshore company in Hong Kong is the transparency and ease of its creation. We’re sure that if you’ve tried to set up a company in Russia or Ukraine, the registration process was accompanied by long visits to offices and took several weeks.
But here, it’s different. No bureaucracy, no paperwork hassles, no additional actions or expenses. The process of registering a company in Hong Kong follows a clear algorithm, allowing you to do everything quickly and correctly the first time!
Low corporate tax rates and a clear Tax Code make Hong Kong one of the most favorable places in the world, where tax conditions truly allow businesses to grow rather than suffocate.
Offshore companies in Hong Kong use a corporate tax rate of 16.5%. Meanwhile, capital gains tax, interest tax, or dividend tax, as well as property tax, do not apply to the legal entity. Also, there’s no VAT.
In addition to all this, we’d like to note that income derived from foreign sources is also exempt from taxation. This means that offshore businesses are not subject to tax liabilities, and this is perhaps the best advantage of setting up an offshore company in Hong Kong.
Another advantage of registering a business in this city is its political stability. In 2018, Hong Kong ranked 2nd in Asia as the city with the lowest bureaucratic process for setting up a business. And this is also a significant advantage!
Agree, against the backdrop of political instability in the CIS countries, small and medium-sized businesses cannot plan for the future. Businesses are tired of constant internal upheavals, changes in power, and legislative and tax measures. That’s why entrepreneurs from Russia, Ukraine, and Kazakhstan want to move their business to more stable countries.
Every businessman wants to be part of this city and enhance their image in the business world. Hong Kong’s clear and simple business rules are the cornerstone of its economy. It is precisely this clarity and transparency that increase the image and trust in companies from international partners.
Hong Kong offshore companies adhere to the international standard for the exchange of tax information, and its reputation is genuinely highly trusted. This means that if you decide to buy an offshore company in Hong Kong, it will not be viewed by international partners as something suspicious or negative.
The legal obligations of any officers of offshore companies are significantly lower than in other cities or countries. Thanks to technology, you’ll be able to perform many processes remotely.
For example, you can open an account in Hong Kong without being physically present, carry out all necessary transactions, hire staff, and prepare and submit the required financial and accounting reports. Remote company management allows you to save time and money.
Undoubtedly, buying a ready-made business implies having an already open and active bank account. In turn, we want to draw your attention to the fact that opening an account in Hong Kong is a process that requires an understanding of all the nuances and subtleties. We’re not saying that it’s an unrealistic process, no. But with the support of a professional consultant, you’ll have a much better chance of achieving the desired result on the first try.
In the past, businesses didn’t pay much attention to asset protection, but now things have changed. In today’s business world, you need to think 20 steps ahead. Asset protection and diversification strategies allow businesses to develop calmly and be confident in protecting their business interests, and most importantly, feel protected from disputes with dishonest competitors, bankruptcy, unreasonable court decisions, and other unforeseen situations.
We hope that all the above advantages will help you improve and expand your understanding of companies in Hong Kong. And if you want to scale your business, increase profits, and find new partners, we recommend registering a business abroad with professionals.
And INVESTMAKLER is ready to help you with this! We know how to complete all tasks and processes efficiently and legally. Don’t waste your precious time searching for and studying the necessary information on your own; send us a short request to: info@investmakler.com, and we’ll start registering your offshore company in Hong Kong and opening a bank account for it today.