An Insight to Setting up a Company in Hong Kong

Posted by goldmillennium on October 15th, 2012

Being an entrepreneur, if you are planning to set up a company overseas, Hong Kong can turn out to be a great option for you. Whether you are an owner of a well established company or a startup, the perfect combination of globalized economy with a low corporate tax benefit make Hong Kong the best place to incorporate an offshore company.

Advantages of a Hong Kong Company for Foreigners -
There are various benefits associated with Hong Kong Company Incorporation and this includes–

• You can get tax exemption on company profit, if these companies are sourced from outside Hong Kong.
• Hong Kong companies are quite popular among foreigners who wish to undertake a business in China.
• Chinese suppliers can be paid in RMB from a corporate bank account of Hong Kong.
• No travel is mandatory for incorporation in Hong Kong from overseas.
• Its jurisdictions reputation as a financial center is recognized as number 3 in the World and prolongs to grow.

Hong Kong is a truly reputable and internationalized trading jurisdiction. Company formation in Hong Kong is quite popular among foreign investors who are planning to set up their regional or global headquarters.

Company Options for Foreigners in Hong Kong –
Entrepreneurs who look for Hong Kong company registration can have three options to pursue.

Hong Kong Limited Company –
This form of company, sometimes also called as a subsidiary company, can help you in availing the benefits of an incorporated business. According to Hong Kong corporate tax system, such a company is considered as a tax free company.

Branch offices –
A branch need to be registered as a non Hong Kong company and is not considered as an individual legal entity from its parent members.

Representative Offices –
You can also go for registering a representative office in China or Hong Kong. These representative offices cannot take on profit making business operations as it is not considered as suitable for meeting the objectives of foreign entrepreneurs.

Fees & other Support Services–
Company formation in Hong Kong involves standardized fees that include registration of company, government licensing fees, auditing and taxation, opening of a corporate bank account, contact of the resident company secretary if necessary and a virtual office. Hong Kong is regarded as the best place for registering a business.

With its assorted multi -cultured environment, Hong Kong is considered as a great place to live and investment.

About the author –
Mr. Jesus Hernandez, is a Managing Director. As the Training Expert for the EU SME’s Commission in China, Mr. Hernandez has a deep understanding of HR challenges and Government relations in China. A PMP(R) and a Boston University certified project management instructor, Mr. Hernandez received a Master’s degree in Industrial Engineering. His vast experience in international projects has given him a clear understanding of the issues that fuel both successes and failures of foreign companies that seek to enter the Chinese Market.