How to buy a company in Hong Kong in 2020
Many businessmen want to buy a company in Hong Kong. This is true because developing business in this country allows you to enter the international market. The jurisdiction is respectable and has a well-developed infrastructure.
What you need to know about jurisdiction
In order to run a successful business, it is important to build an organization that meets the requirements of the country's legislation. It is necessary to take into account the pros and cons of the company's development.
Before buying a company, it is important to consider the following aspects:
- Costs arising from the development of the case.
- The scale of the company.
- Required capital.
- The need to attract investors.
- Initial financial costs.
- Features of taxation.
- Business needs.
Before creating an organization, it is recommended to explore the perks of jurisdiction’s legislation and collect a list of required documentation. The advantage of opening a company is that the businessperson has the right to choose the type of organization. Popular types are individual entrepreneur and partnership or private organizations with limited liability. The latter form is the most common.
Local companies in Hong Kong may receive tax breaks and therefore the losses from fees are significantly reduced. Regardless of organization’s tax status of the organization, an audit is conducted every year. During the period when the company does not operate and has no income, it can get an exemption from making payments. An organization registered in the jurisdiction, does not hold a status of an offshore company.
Even if the organization's capital is completely foreign, there are no restrictions on the use of loans and royalties. There is no currency control, non-residents can get a loan after opening a company.
Registration of companies in Hong Kong
Before you register a company in Hong Kong, you need to familiarize yourself with the requirements for legal entities. It is necessary to choose the name of the organization and the company must have a legal address. It is necessary to have a director and a secretary. There should be an authorized capital. Records should be kept in the accounting department.
The company’s name should include the abbreviation OPF. Some names require prior approval. It is possible to mix English and Chinese in the name. The use of obscene names is prohibited.
The director may be a resident of any state. The Secretary may be a Hong Kong citizen. There can be from 1 up to 50s. The organization must have an Hong Kong address. Information about the members of the company is public.
Is it possible to open an offshore company?
It is difficult to open an offshore company in Hong Kong. Registration is possible only if the activity is conducted outside the jurisdiction.
Directors and shareholders who are non-residents must submit a number of documents. These include a copy of the passport, confirmation of the physical address and letters from the bank proving the solvency.
Reliability of banks
You can open an account in Hong Kong only if the director of the organization is personally present. The advantage of creating an account is that the area is considered one of the world's financial centers, and includes many branches of the world's largest banks. The banking system is well developed.
The largest banks, where you can buy an account in Hong Kong are:
- Bank of China;
Banks in Hong Kong retain a high degree of anonymity, and clients are guaranteed a high level of confidentiality. You can have accounts in different currencies and manage your account remotely. Security of deposits is ensured.
If you have any questions about buying a company in Hong Kong in 2020, please contact our specialists at IT-OFFSHORE. We offer high-quality services at favorable prices.