How to open a crypto company in Hong Kong
It is relatively easy to open a crypto company in Hong Kong. Many businesspeople seek to develop business in this jurisdiction, as it is a major financial center. A company registered in Hong Kong will have a positive reputation.
Opening a cryptocurrency company in Hong Kong in 2021 is also relevant because the taxation system is favorable. The income tax rate is 16.5%, provided that profits are made in the territory. A reduced rate is used for a company's first earnings. The government has a positive attitude towards business, attracting investors and entrepreneurs from all over the globe.
How to start a company
To register a crypto business in Hong Kong in 2021, contact our experts at IT-OFFSHORE. We will help you choose the best form and get a license. Limited Liability Companies are considered the most relevant in Hong Kong.
To open a company you need to choose a name - it must be unique. It can be drawn up in English or Chinese. When planning to do business in the territory of Hong Kong, a real working office and the availability of a local phone number are required.
Shareholders and directors are required to provide notarized copies of passports and proof of residence address. Depending on the type of activity, it may be required to obtain a license. For example, it is required for travel agencies, currency exchange operators, financial companies, etc.
If certain conditions are met, it is possible to register with the status of an offshore. This is only possible if there are no customers or clients from the territory, no real office in Hong Kong and suppliers, and all business transactions are performed outside of Hong Kong.
When choosing a bank for account opening, it is recommended to consider the purpose of the account and the list of services provided by the bank. In addition, it is important to consider the type of business of the company, service fees, and the location of the financial organization.
Peculiarities of cryptocurrency regulation
Hong Kong law has a special legal status when it comes to cryptocurrency. Depending on what activities the business will perform, a permit or license may be required.
When obtaining a license to exchange cryptocurrencies in Hong Kong, it is important to keep in mind that these activities are not subject to securities law regulation. Persons who sell and distribute Security Tokens must obtain a Type 1 document which allows securities transactions. Cryptocurrency exchanges that plan to exchange virtual currencies for fiat funds must obtain an MSO permit.