The benefits of establishing an offshore company in Hong Kong are many. Companies and individuals can enjoy many tax benefits, and there is no need for a license to trade or operate. The services that it can render in setting up an international business or a local business can be beneficial.
Set up company in HK is relatively cheap and straightforward. There are two options when setting up a company. One option is to establish a limited liability company (LLC). Another option is to set up an individual company. Both options have advantages and disadvantages, and the best choice will depend on the type of company and its purpose.
Limited liability company formation in Hong Kong has several tax benefits. It allows the company to use its domain and managing director, so there is no need to pay a managing agent fee. The company itself does not have any operations other than paying the tax. One significant advantage is that there are no restrictions on the number of directors an LLC has. The number of members can increase or decrease according to the need.
Individual company formation requires payment of taxes, including an income tax, an import/export tax, and a corporate tax. The company itself does not have any operations apart from paying the tax. These taxes can be deducted by making purchases in the country of residence, paying wages or salaries to employees, and paying other indirect costs. An income tax return is required. Besides, an accountant must conduct all the financial accounting procedures necessary for the company’s benefit.
Several steps need to be followed. Among the most critical steps are providing the correct address and contact information, preparing the Articles of Association, appointing the company director and members, and providing the relevant licenses. Each step is quite different. All these require detailed attention and expertise.
When you set up a Hong Kong company, the process will be even more complicated and time-consuming than when you set up a company in any other country. It is tough to obtain a license for company registration in Hong Kong because it is quite different. If the offshore company formation is done by a highly reputed company incorporation service provider, it might be possible to obtain the license within a few months. Otherwise, the process will be prolonged and quite expensive.
One more important thing that needs to be kept in mind is that even though company formation in Hong Kong can save you lots of money, it is a process that you should not attempt to complete yourself. If you want to save money, you should hire a professional company formation service provider. However, if you want to save time and effort, you should get help from a good book on company registration. You can find all the resources and information about setting up a company on the World Wide Web. While plenty of companies offer free guides, you should ensure that the one you select is reliable.
One final word of advice: do not believe everything you read on the Internet. Remember that not every website that claims to have free company formation services is providing them. Furthermore, not all sites offertruthful information. Always take some time out to read the entire content before paying for their products or services.