The reason behind this is that there are several benefits to company formation in Hong Kong. One of the primary reasons is that the country’s rules are more flexible than those in many other countries. Another reason is that the corporate laws in Hong Kong are much more convenient to facilitate trade and investment. These are the primary reasons as to why people prefer company formation in Hong Kong.
The benefits of company formation in Hong Kong are too numerous to mention. It is, however, wise to list a few here. First, an offshore company has its benefits in the taxation arena. Taxes are always a significant burden for any country to setup offshore company in Hong Kong. Many companies do not bother with the issue of taxes as they fear government regulation of their operations. However, in Hong Kong, the taxation law is straightforward to follow, making it easy for offshore companies to pay taxes on a timely basis.
Another benefit of company formation in Hong Kong is that one need not be a high-income earner to set up a company. Companies can be started up for barely ten thousand dollars. Moreover, tax payments are far more affordable. In other words, the income one receives from the company does not have to be very high to pay the appropriate tax. The company formation process also saves on the costs incurred by setting up a permanent office in the territory.
Another benefit of company formation in Hong Kong is that the whole registration process is straightforward. Registration can be done at the Registry of Companies in Hong Kong under the offshore company’s name. Also, the company formation service provided itself is very efficient. It saves the time and effort required to conduct the registration process alone. Thus, company formation in Hong Kong can be carried out within a brief period.
Besides company formation, there are other benefits of business registration in Hong Kong. Besides a streamlined registration process, there is no need to worry about the type of business engaged in it. There is an option for anyone to set up any business under any name and do business using any banking system. Since all transactions are done under the offshore company’s banner, the company owners’ details remain protected. It protects them from being identified during an investigation by law enforcement agencies. Thus, company registration in Hong Kong offers an excellent shield to the company owner’s details.
The offshore company also allows easy access to the financial accounts of the company. Thus, the individuals concerned with the company’s management do not need to maintain a regular bank account for the purpose. The offshore company’s use can be used for different purposes, such as paying the employees’ salary or managing the company’s accounts. Since these companies operate with lower costs than most local banks, their taxes are much lower than the country’s average corporate tax rate. Thus, using an offshore company can be a smart investment decision.
It is also possible to find an offshore company in Hong Kong that are operated by individuals. This kind of company is known as a Limited Liability Company or LLC. An individual may register his business in this manner if he plans to handle his finances and deal with his business affairs personally. This type of registration has some advantages over a company registered in the mainland of China. One of them is that it does not make the individual bankrupt after he has paid the tax.
However, finding an offshore company in Hong Kong is not that simple. Many offshore registration companies are operating in this regard, and you need to know something about them before you deal with them. The best place to start researching about the offshore company is through the internet. It would help if you did not go for a company whose registration fee is too high. Instead, look for a company that offers a reasonable registration fee along with useful features like a help desk service and their company logo.