A growing number of foreign companies are setting up an Offshore Company in Hong Kong. Hong Kong has emerged as one of the most popular offshore company formation locations in the world. Companies in Hong Kong enjoy a highly regulated business environment that offers many tax benefits. Besides, it is easy to set up an offshore company in Hong Kong that the Hong Kong SAR laws will protect.
There are various reasons why more companies are choosing to setup offshore company in Hong Kong. One is the need for protection from local taxes. Most companies will not afford to hire a local accountant or corporate lawyer to establish an offshore company in Hong Kong. The sheer complexity of the corporate system in Hong Kong also precludes most new entrants from setting up an offshore company in Hong Kong. The cost of maintaining a local office and paying wages to local employees is also very high.
However, Hong Kong is well-known for its low tax rates. It is another important reason for setting up an offshore company in Hong Kong. An individual can easily save the right amount of money by establishing a Hong Kong company and paying low taxes. The company will then pay the appropriate tax to the government and claim deductions at tax time. It is a desirable option to save money in addition to enjoying a high level of tax benefit.
There are several other benefits of offshore company formation in Hong KongMoreover. Company directors who have passed the necessary licensing tests in their country of residence will be allowed to sit for Hong Kong companies. It enables the company directors to function with greater confidence in Hong Kong.
Besides, offshore company formation in Hong Kong will be very beneficial for the owners. It is because the companies have lower overheads. The foreign company owner himself usually bears these costs. Furthermore, the company will not be required to pay any income or inheritance tax to any government entity in its jurisdiction.
Apart from the low overheads, another reason why the offshore company formation in Hong Kong is very advantageous is that there are no restrictions on the transfer of funds. Thus, a company can operate with large capital and comfortably pay salaries and employee taxes. It is possible because the tax regulations in Hong Kong are comparatively low, and the company cannot be subjected to any legal action if it has paid tax but failed to give income tax.
When you set up an offshore company in Hong Kong, you need to be very careful about your company’s privacy. All the communications between you and the rest of the world must remain confidential. Moreover, even the company owner should keep the company’s identity secret so that nobody gets to know that he owns it.
You can get more information about offshore company formation in Hong Kong from the internet. Many websites offer the necessary services for this purpose. Most of them charge a nominal fee for conducting the research. However, you can be assured that you will get all the information you need to know by conducting proper research.