How to Form a Company in Hong Kong and China
The reasons are diverse as to why investors set up shop in the city. Other offshore locations have similar opportunities for registering a company offshore. Investors running no business operations on the Island can enjoy a tax free haven when they start a company in Hong Kong and China.
It is cheaper to start and register a company in the cities since company registration in the cities is relatively loose.What this does is to make the cities the ideal locations for starting shell companies.The total cost for starting the company is quite cheap.
As a matter of fact, it is quite dangerous dealing with shell companies in this jurisdiction. They do not enjoy a physical presence in the city. When any dispute is occasioned by the transactions ensuing, it is not possible to remedy them. Transacting from China poses no security concerns since you are considered as transacting from Hong Kong.
Some companies opt to have bank accounts in foreign banks.The reason for this is that banks run by the state are known to be very 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. These big banks enjoy the trust of many business operators.
Exchange control is a thing that is alien to Hong Kong and China.This means that banks will never charge any withholding fee after the funds are deposited with them.Depositing the money is also very easy.The same case applies to either withdrawing or transferring the funds.The truth is that the banks operate tax free and without any other fees.
Again, banks in this location guard a customer’s information with unequal zest. Account information cannot be shared without a customer’s consent. The law will however not hold in cases where the customers is being investigated for criminal activity.Such criminal activities include money laundering and other related crimes.
It is easy to form a company in these cities.It is not necessary for you to be physically present in the Island. You will enjoy low tax rate as well as a tax haven. There is a proper legal system that your company will benefit from.Again, foreigners not running businesses in the city are also bound to enjoy the safety without fear.It is safe and easy to form a company in Hong Kong and China.