The benefits of Hong Kong company formation are too many to list. But to help you out, here are some examples. You may have been told that getting a business license in Hong Kong is a very tedious process and can take months. But getting the business registration certificate is more comfortable and less time-consuming, and it does not even require a visit from a government officer!
With HK company formation, you can choose between a “personal” company registration and a “business” company registration. Both enable you to open an exclusive line of business together with other investors and members of the public. Depending on your requirements, you can have one or both done. You do not have to use the same company name for the two registrations. It is good news to retain your business name’s privacy and remain anonymous when dealing with customers or providing information to the public.
When you decide to register a business under the Company names of Hong Kong companies, you are taking advantage of several benefits offered by Hong Kong laws. First, it allows you to use the English version of the company name, even though most global companies still prefer the Chinese version. Second, the laws on company formation in Hong Kong provide an avenue for start-up companies that would otherwise find it difficult to get a business license in their preferred international country. Third, they make it easy for companies to do business in Hong Kong without complying with the typically stringent corporate filing requirements of countries outside of Hong Kong. The laws also make it simpler for you to incorporate your company.
Many people wonder why Hong Kong authorities allow individuals to open an offshore company. The answer to this question lies in the differences between the local and foreign legal systems. It is common for there to be a Limited Liability Company or LLC in the former, which is a legal entity separate from its owners. Companies can only have two owners, which are usually related to each other, and there are restrictions on how the LLC is used. On the other hand, in the latter, a company formation in Hong Kong will not require you to go through the hassle of creating an LLC. The building will automatically create a Limited Liability partnership instead.
The formation of an offshore company in Hong Kong is also beneficial because incorporating the company requires much lesser paperwork than the process needed when establishing a mainland China company. You can freely choose among the law options to determine how the business would be incorporated and the details of the shareholders. An offshore company can be registered in either the simple or the complicated method, depending on the law’s requirements. For instance, under the simplified procedure, the nominee company director will be the one to handle the day-to-day operations. However, the process is quite lengthy and time-consuming, especially for small businesses that have just started.
As the benefits of formation in Hong Kong outweigh the disadvantages, many investors and entrepreneurs are enticed to make investments in this part of the world. There are indeed numerous advantages that come with making investments in Hong Kong. The most important benefits are access to the offshore banking system and the ability to enjoy various financial services, not to mention several other benefits such as exemption from taxation and the legal system.
The significant advantage of incorporating your business in Hong Kong is access to the bank based in Hong Kong. In this way, you will have easy access to your business finances and will be able to maximize the benefits of the foreign company tax rate. Also, it is easier to enjoy the benefits of a lower corporate tax rate since the Hong Kong company’s profits will be taxed at the same rate as the foreign company.
The benefits of company registration in Hong Kong are very enticing. You will have access to the offshore banking system and the lowest corporate tax rate in the whole of mainland China. In addition to that, you will be able to enjoy a free offshore banking service and enjoy several other benefits offered by the legal system of Hong Kong.