3 Resources Tips from Someone With Experience
Forming a Company in Hong Kong and China
Setting up shop in the city for investors is occasioned by various reasons.When it comes to Hong Kong offshore company registration; it actually provides opportunities that are tax-free and similar to other offshore locations. 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. This culminated in making the cities the most ideal locations for making 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 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. 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. Opening company accounts from state run banks is an uphill task, necessitating doing this.Actually, it is safer to have a company account in the state-run banks on the mainland. It will be much easier to launch a complaint.
The international major banks being in vicinity is an added advantage to starting the offshore company. There are so many branches that the banks have.Again, there are so many business investors who trust such big banks.
Again, Hong Kong and China lack exchange control.This means that banks will never charge any withholding fee after the funds are deposited with them. It is very easy to deposit. Similar terms are enjoyed by withdrawing and transferring the funds. There are no fees or charges that the banks deduct.
The zeal with which the banks guard the customers information is good.Actually, a customer’s information can only be shared with the customers prior 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.
Forming a Hong Kong offshore company is easy.It is not necessary for you to be physically present in the Island. You will enjoy a tax haven and there is low tax rate.It is also worth noting that your company will automatically benefit from a proper legal system. Foreigners who do not operate businesses in the city will not need to fear. It is very appropriate to form a company in Hong Kong and China.
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