Forming a Company in Hong Kong and China
Setting up shop in the city for investors is occasioned by various reasons. Other offshore locations have similar opportunities for registering a company offshore.This is indeed a tax free haven that happened to be as well enjoyed by foreigners owning companies running no business operations on the Island.
When you compare to other locations, the company registration requirements offered in these cities are relatively very loose.What this does is to make the cities the ideal locations for starting shell companies. It is indeed very cheap to start a company in these cities.
In this jurisdiction, it is not always safe to deal with shell companies.They mostly lack any physical presence in the city.In the event that a dispute emanates from any transaction, it is not possible to remedy any problem on the island in case a dispute arises. If you are transacting from China, there is practically no protection as you are considered transacting with a Hong Kong company.
There are numerous companies that choose to open bank accounts in foreign banks. The reason behind this is that state run banks tend to be overly strict in opening company accounts. Having an account in the state run banks is very safe.It will come in handy in the event that you will need to launch a complaint.
It is advantageous to open a company in Hong Kong since it is in the presence of internationally famous banks. There are so many branches that the banks have. Many business operators easily trust these banks.
Exchange control is a thing that is alien to Hong Kong and China. After making the deposit, the banks do not charge any money in terms of withholding fee. It is very easy to deposit. Also, transferring and withdrawing the funds enjoys similar terms.The truth is that the banks operate tax free and without any other fees.
There is a desirable zeal with which the information of the customers is guarded. A customers prior consent is required before disclosing the information.This law is however exempt for customers involved in criminal activities as required by international law. Money laundering and other related crimes form some of such crimes.
It is easy to get a Hong Kong offshore company. Your presence in the Island is not required. You will enjoy a tax haven and there is low tax rate. There is a proper legal system that your company will benefit from. There is no need for foreigners who do not run businesses in the city to fear. It is very appropriate to form a company in Hong Kong and China.