In business, every decision should be taken based on the facts. Therefore, before starting your business, you should consult with the government to gain all the necessary information. There are a lot of business operations; you need to consider before starting your own company, especially if you want to have an offshore company.
The jurisdiction known as Hong Kong is considered a separate country. It provides its independence in all activities including law, financial management, and taxation system for offshore company formation Hong Kong. Every significant business you can find in the Far East also started in Hong Kong. Here are some of the reasons why you must consider offshore business formation in Hong Kong now.
Firstly, it provides you with better tax benefits than any other country in Asia. You will have more generous tax deductions, flexible rules for investment, exemption from customs duties, and a lot of other advantages. It is one of the primary reasons why so many people prefer to start their business in Hong Kong, aside from the fact that the government there offers good tax benefits. These advantages, of course, are not available in other countries.
Secondly, the legal system in Hong Kong is very efficient. If you have a simple business and if your company has no employees, you will be allowed to file the complete business details in the public record without having to make any payment. The company will be registered at the Commercial Register, which contains all the necessary information about the company. There are also a lot of companies that provide you with a copy of the Commercial Register every year, so you won’t have to worry about making the necessary payments anymore. It would also help you know your responsibilities in detail.
Thirdly, there is a lot of competition in the business world today. Many small companies in Hong Kong offer low-cost services, while some others offer better quality. With the presence of so many small and medium-sized companies, you can take advantage of some of these companies and get an affordable business solution.
Fourthly, Hong Kong’s corporate laws are very favourable to investors. Although some rules limit the amount you can invest in a specific type of business, there are no restrictions concerning the size of the business. Also, there are no formalities to sign for business incorporation in Hong Kong, such as the filing of the Articles of Association Registration. You must follow some simple procedures, and there is nothing more to do. You can open a bank account and a branch in this jurisdiction.
Fifthly, you can open a bank account in this jurisdiction even without proper business registration. It is possible to open a bank account in this jurisdiction even without a business registration if you are an individual investor or an individual trader. The government is very friendly to individual investors.
Sixthly, there are a lot of things you can do to protect your interests. Hong Kong’s laws and practices regarding commercial activity are very lenient. If you have a business in this jurisdiction, you will be protected against the taxes the government takes from your business profits. If the government seizes any assets, you can ask for an audit letter from the Commercial Registry, and the courts will assist you in determining what they should do.
Seventhly, offshore company formation in Hong Kong is an excellent choice if you want to run your business overseas. The tax rules in this jurisdiction are very flexible, and you can save a lot of money on taxes. You also don’t have to pay a high-income tax to the Hong Kong authorities and can use the country’s immigration system to get a permanent residence visa for the country of your choice. If you are already working there, you can use the immigration system to get a work permit.