Hong Kong as a "tax haven"
Although this territorial unit is not considered an offshore, in terms of taxation it is much more favorable than many of them. Local rates are among the lowest in the world. Moreover, profits earned by a company outside Hong Kong are not subject to taxation at all. This also applies to transactions, dividends, interest, social insurance, and the like. And VAT is absent here in principle. The residency of a company is determined not by where its office is located, but by where contracts are executed.
Other advantages should also be noted, including:
– the number of types of business activities subject to licensing is minimal;
– the development of the banking sector;
– the presence of world-class infrastructure;
– a simplified registration procedure.
For successful completion, it is enough to choose a unique name and send a standard package of documents to the Companies Registry. Their review usually takes two to three weeks. After registration with the tax department, you can open a bank account and start working. To avoid mistakes, some managers prefer to use the services of local intermediary companies.
Mostly, managers seek to open a private limited liability company in Hong Kong. This can be done by any person who has reached the age of 18. In addition, the registered company must rent a local office and have at least one secretary (a Hong Kong resident) and two directors.
Another popular option involves registering a branch of a foreign company. To do this, you should submit a corresponding application, attaching the required documents (a copy of the charter, a copy of the certificate of registration, and others), as well as indicate:
– a legal address in Hong Kong;
– personal data of the directors and secretary;
– a list of local residents through whom contact with the authorities of the administrative entity is planned to be maintained.
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