Hong Kong

Hong Kong is a major international centre in which strong human and financial capacities reside. This jurisdiction can be considered as so-called quasi-offshore. The present term refers to well-respected jurisdictions that appear on no blacklist, though making it possible not to pay taxes, with such an exemption being perfectly legal. However, this opportunity is provided only if operating outside Hong Kong. The territorial principle of taxation is applied here, and local companies are hence exempt from taxes on foreign income.

Registering a company in Hong Kong offers great opportunities for business to develop and prosper. Favourable investment climate makes this jurisdiction particularly appealing. It is profitable to establish large holdings and industrial companies here. Predictable legislation friendly to non-residents and strong economy encourage business owners to buy an offshore entity in Hong Kong.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Advantages

  1. impeccable reputation and high standing in OECD rating;
  2. zero tax on dividends and capital gains;
  3. VAT exemption (if carrying out activities beyond the jurisdiction);
  4. simple registration procedure that may be conducted remotely;
  5. possibility of owning cargo ships;
  6. no foreign exchange control;
  7. nominee services enabling to protect personal data of an actual owner of a business;
  8. bank account in any jurisdiction.

What types of companies can be registered in Hong Kong?

Offshore companies may be set up with a registered capital of HK$1. Only one member (shareholder/director) is needed to establish an entity. The company name is entered into the registry in both Chinese and English. Companies in Hong Kong are registered as LTDs and allow for unimpeded export of Chinese goods to countries all around the world. Non-residents enjoy tax exemptions, the amount of which varies under the territorial principle.

Features of Tax Computation

Companies may conduct business activities both outside and within Hong Kong. In the second case, profits tax is to be paid. Net profit can be decreased by means of a flexible system of tax deductions, what is another advantage of registering an entity in this jurisdiction.

Local legislation provides for the following types of taxes:

  1. Payroll tax — 2–17% (progressive rates are adopted).
  2. Profits tax — charged on profits received from operating within the territory of the jurisdiction. The tax rate is 16.5%. Dividends and capital gains are not subject to taxation.
  3. Property Tax.

There are as well excise duties, airport charges, vehicle registration tax, and so on.

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