It’s relatively easy to think about how to set up a limited company in Hong Kong – although there are specific laws that govern offshore business formation. Though Hong Kong does have no specific law which governs the offshore business formation, however, it remains one of the top destinations for establishing an offshore business owing to its numerous advantages: low taxation regime.
However, before you go and set up your company in Hong Kong, there are several things you should be aware of it. These include:
You may want to consider using different options than those recommended by your lawyer and accountant. It is because it is quite likely that you will come across a case where your attorney and accountant do not agree with each other on the rules. The only way to ensure that you and your chosen professional have a mutually beneficial relationship is by consulting an expert when it comes to choosing the best options.
In Hong Kong, you have the option of starting a limited company on your own or having one created under the provisions of the law. In either case, you are required to pay an individual registration fee. The amount is based on the size of the business.
It is advisable, therefore, to consult with an accountant who specializes in international tax planning. This way, you can be sure that your offshore venture does not cost you more in taxes than you should have to pay. It is because an accountant will be able to give you advice as to whether you are likely to incur a lot of taxes, especially when you are incorporating your business in Hong Kong.
You will also need to ensure that all of your business records are kept in order. These records include all the documents you use when making transactions on behalf of your company, such as your Memorandum and Articles of Association, company checks, account books, and any other financial documents you use. An accountant can help you maintain them correctly.
Before you choose an accountant to represent you, make sure that he or she has already prepared your Hong Kong offshore company formation plan. The accountant you choose must be able to help you understand your company’s needs and objectives and how the company can fulfil them to be as successful as possible.
There are two different types of accounts that are open for the sole proprietors of a limited company: a bank account and an offshore account. If you are going to choose a bank account, it is wise to use an accountant who specializes in international business.
You can have an offshore account for the company’s assets. This account is set up offshore so that it is safe from the prying eyes of the government. Since the tax benefits are not included, you can save a lot of money because there is no need to pay taxes on the company’s assets.
If you are looking for a bank account, look for an accountant that can provide you with the service you need. A good accountant will be able to provide you with the information you need about international banking that is needed to open the account, manage it, and pay your taxes on your behalf.