Being one of the biggest hubs for commerce, Hong Kong attracts many businessmen. Hong Kong provides the entry to the largest market in the world, the Asian market. But, there is another reason that they find Hong Kong attractive.
Great tax benefit
This reason is that Hong Kong has many offshore company incorporation assisting firms that help you set up your own public limited liability company in Hong Kong. One may ask what is so great about this. Offshore companies do not have to pay tax! The sales tax is non-existent and the tax on profit if at all is low.
According to the law in Hong Kong, if your company does not make any profit from Hong Kong, it need not pay any tax. If the company makes profit from overseas dealings, it need not pay tax. For this reason, many businessmen set up their offshore company in Hong Kong. One understands what a huge saving there is if one does not have to pay tax.
Other than that, setting up an offshore company helps you protect the assets of the company. According to the law, you get protection when you set up business in Hong Kong. Outsiders are not allowed to know or access any of the property belonging to the company. The other big advantage is that the Registrar does not have to reveal the identity or the workings of the company. So, the owner and director of the company can transact business without anyone knowing what they are doing. This helps them beat the competition.
Set up the company
The offshore company incorporation is an effortless process. The businessman approaches the assisting firm and submits the filled-in application form expressing interest in opening a public limited liability offshore company. The assisting firm then asks for the fee to set up the company. This is $1,050 and once he pays this, he becomes eligible for many things such as appointment of the Company Secretary that remains done by the assisting firm itself. In most cases, the firm will become his Company Secretary. They will arrange for the staff and take care of the rent. The firm has many old companies that they convert into new companies for the businessman.
Choose different packages
The businessman can opt for a package that is right for his business. This means he need not take out the full-service package for $1,050 but can opt for a basic one that costs only $629. This includes the government fee of $530 and so the package costs only $99. All documents of the business remains delivered to the businessman via email. He gets the Business Certificate, Certificate of Incorporation, and Registration at the Companies Registry. If he wants a registered office address he must choose the next bigger package. He will also get the Company Secretary with this package.
The businessman conducts business without the need to rent offices in Hong Kong. He pays no rent and very small amount of tax. That in a nutshell, is the reason why so many businessmen open offshore companies in Hong Kong.
