Offshore in Hong Kong in 2019: what you need to know?

Often, offshore companies name jurisdictions where foreign individuals and legal entities can register a company and open bank accounts, as well as conduct business with more loyal conditions for paying taxes, accounting, etc.

However, there is a significant drawback in registering offshore - many banks in European countries refuse to work with the owners of companies that were registered in an offshore. However, some of the offshore companies of Hong Kong can not be attributed to the "offshore" in the classic sense of the word.

Registration Features

The jurisdiction has a territorial principle of taxation, as a result of which the Hong Kong company should not pay income tax if its work is carried out outside the district. In addition, there is no need to pay a number of payments that are relevant in conducting activities in other jurisdictions.

Responsibilities when doing business:
• Payment of registration fees;
• Maintain accounting;
• Reporting on income received, etc.

It can be said that Hong Kong belongs to jurisdictions that have some signs of offshore zones, while the jurisdiction is respectable, it is called “midshore”. The differences between the midshores are that they enjoy a good reputation.

Opening an offshore in Hong Kong is relevant for the implementation of export-import operations. Often, offshore in a jurisdiction is used by businessmen as an investment organization with transparent reporting - this allows you to get a loan.

What you need to register

The first stage of registration is the creation of a unique name in English and Chinese. It is important that the name was unique. Registration does not require a large amount of documentation. Each director and shareholder is obliged to provide copies of passports certified by a notary, as well as information on the address of residence, registration, bank statements. Additionally, other personal information and contact information may be requested.

The company must have a real address. In addition, companies are required to have a secretary who is a resident of the jurisdiction. It is also important to properly maintain accounting.

Depending on the specifics of the activity, a special license may be required, for example, companies serving cash transactions, realtors, etc. You can get answers to questions regarding company registration from our IT-OFFSHORE specialists.

The important point is to create an account for the full operation of the company. It is required to start choosing a bank before opening a company. Virtually all financial institutions are checking documents and customer data, including information about the origin of money. Therefore, all documents are recommended to prepare in advance.