Setup Business in Hong Kong and Enjoy the Various Benefits of Their Jurisdiction

If you wish to set up your own company, it is important that you learn about the benefits of offshore companies. Offshore company refers to that which operates outside its country of registration. This is usually carried out by business people in order to exploit the benefits of a country’s legal systems. If the country has low tax rates or other financial benefits, starting an offshore company in that country can prove to be a successful step. Such an offshore company is also referred to as an international business company. This company is not liable to any kind of tax payment to its home jurisdiction that is the location where the company is physically situated.

Tax rate for Hong Kong offshore companies

Among countries that have flexible legal laws when it comes to business, Hong Kong is the most sought after country by business men. The offshore companies in hong kong enjoy excellent legal benefits when operated efficiently. This is because the British legal system is still followed by the country. The companies have to pay only 16.5% of net profit as profit tax. The company does not have to pay tax for the profit it makes outside the country of jurisdiction. Hong Kong does not incur tax exemption on income.

Benefits of Hong Kong jurisdiction

The company does not require a capital for its incorporation. The company can be owned by any foreign person who can act as the director. He can also be the principal shareholder of the company.  There is no obligation regarding employment of staff for the company to function. A bank account for the company can be opened at any part of the world and fund transfers can be carried out to and from Hong Kong without any restrictions. There is complete freedom given to the entrepreneurs in conducting their companies.

Steps to set up a new business

In order to Setup business in hong kong, the following must be done. You should first submit three possible choices for your company name. The name of your company should be either completely in English or in Chinese or can incorporate both English and Chinese. But the name cannot be in any other language. This should be followed by submission of an address of contact of the director and the principal shareholder. Note that they can be the same person also. Passport of the director and all the shareholders will be verified. The company should then submit a brief proposal explaining their scope of business. This will be followed by fee payment. The entire process can be carried out in no time.