Every overseas company has its objectives and aims for future growth. Therefore, every company follows a unique strategy when setting up their offshore business. However, when it comes to company formation in Hong Kong, there are several benefits that you can expect from it. You will be enjoying complete independence from the mainland Chinese laws. Aside from this, you will also enjoy the same low taxation that you would on the mainland.
Most overseas company registration Hong Kong companies require two main components for their business registration. One of these components is the corporate veil. It is the legal entity created for your company in Hong Kong. The other component is the bearer share, which is a kind of electronic voting that most companies in Hong Kong utilize. These two components together will create the main paper for your company. However, the issue that these two components have in common is that they do not serve all the purposes of an international company.
One of the main reasons why most international businesses prefer to have one of the two entities as their central entity is because it provides them with a lot of benefits. For instance, by having one of these companies as your main shareholder, you are assured that whatever capital is invested will be returned immediately without much difficulty or risks. One of the main reasons why a lot of investors have this preference for having an offshore company is because it lowers their taxes and at the same time, it also has a lot of advantages when it comes to the management of the company. Apart from the fact that you can invest your money in different parts of the world, you will also be able to use it in any way you like as long as your money is protected. So, when you have this offshore company in your possession, then you can also enjoy vacations, luxurious cruises, and other such types of things.
Another reason why an individual would want to have a corporate shroud in Hong Kong is that they can avoid paying high taxes. If an individual wants to open a company in a foreign jurisdiction, one of the requirements that are required of him is to pay a large amount of taxes. However, suppose an individual can establish an offshore company in Hong Kong. In that case, he will be able to pay fewer taxes because the company will be considered a corporation and as such will not be liable for taxes. Aside from paying low taxes, an individual also enjoys many other tax benefits such as exemption on income, gifts, and inheritances. An individual also gets to enjoy all these benefits without paying a Hong Kong tax.
When it comes to the issues regarding the ownership and management of overseas companies, the Law Society draws up a register of foreign corporations. It holds a unique role in the registration of the company and acts as an escrow agent for the payment of the registration fee.
The rules for establishing an offshore company set up in Hong Kong are different from those followed in other countries. Companies that choose to establish their company in Hong Kong need to follow the same laws that apply in all the countries where they want to do business. They will still need to register and keep accounts with the Hong Kong Companies Registry, follow the same tax rules they would in any other country, and pay taxes to the government on their income and assets in Hong Kong. It makes it a desirable option for international business people to open an account in Hong Kong.
The second reason is that establishing an offshore company in Hong Kong through Jones Lipman & Co (JONES LIPMO) is hugely beneficial to the exporters. An exporter will find it very easy and convenient to establish an offshore company through JONES LIPMO. There are very few formal processes for the exporters to undertake, such as the establishment of an address in Hong Kong. For this, a simple application form needs to be submitted together with the necessary documents. After getting the approval of the concerned authority, the registration process can also be started.
Various types of businesses need registration with an Overseas Company Registration office. A few of them are gaming, insurance, and high-end finance. Many companies that are interested in overseas company formation in Hong Kong should find the best service provider to assist them in their plans. With a great deal of planning and thought going into the decision of establishing a company in Hong Kong, it’s no wonder so many companies are thriving.