How to open a trust in Hong Kong to protect assets
An entrepreneur of any country is interested in preserving his or her own financial assets and property. Opening a trust in Hong Kong to protect assets in 2021 is relevant. The laws related to trusts in this jurisdiction are the most loyal and favorable. To learn more about the nuances of registering a trust, contact our experts at IT-OFFSHORE.
Advantages of setting up a trust
It is quite profitable to open a trust in Hong Kong as the jurisdiction has a favorable political system and non-resident ownership is possible. There are no strict conditions regarding the registration of documents.
Other benefits are the following:
- You can place assets according to the owner's wishes;
- There are no exchange controls;
- You can get exemptions;
- There is a possibility of optimization of taxation;
- Assets are well protected.
There are no strict conditions regarding the submission of reports related to finances, and there are no requirements regarding auditing. Anonymity can be maintained, and no inheritance tax has to be paid.
Requirements to open a trust
The structure of the trust must involve a settlor who creates and transfers assets, a trustee, and a beneficiary. There must be a protector who ensures that the assets are legally administered. Either an individual or a legal entity can act as a trustee.
It is important that the settlor is legally capable and has the right to dispose of the property. It is necessary to create a detailed list of assets that can be transferred to the property. They should not be under pledge, arrested, etc.
To open a trust, a trustee must be appointed, and criteria must be developed for the beneficiary, which he or she agrees to abide by for as long as the Deed of Trust is in effect. An agent who is authorized to do so can register the trust in the jurisdiction.
What documents are needed?
To create trust, you will need to provide information about the assets. To open a company in Hong Kong, a Memorandum of Association or similar documents, details of registered office, copies of passport, and residential address will need to be provided.
Name approval will be required and registration with the Registry. It may be necessary to open an account with a bank in the country, and identification with the tax authorities will be required.