Over the last decade, Hong Kong has become an attraction to investors because of its political stability and business driven economy. When an investor decides to run an offshore company in Hong Kong, he/she can enjoy a very strong banking system that articulately secures deposits and guarantees access when needed. Because Hong Kong is still part of China, it serves as a perfect gate to entering the huge Mainland China market. This article gives a detailed account on setting up an offshore company in Hong Kong.
Advantages of setting an offshore company in Hong Kong
Many people might be asking whether setting up an offshore company in Hong Kong is the right idea. Hong Kong has taken a global outlook, and many companies that want to catapult into the global sphere consider it as the best platform. It has a non-punitive tax regime that allows you to keep and plough back most of the profits for your business to grow faster. If most of the offshore company’s operations are done from abroad, you might even qualify for 0% tax.
It is very easy to open a foreign company and have it running without even having to fly there. With a company, Hong Kong has a flexible travel system that allows you to enter, transact business, and make profit without having a visa. To get these benefits and much more, you must first set an offshore company.
Most important requirements for registering the company
Once you have made a decision to set up an offshore account in Hong Kong, the first thing should be gathering all the requisite documents. They are used by the registrar of companies to establish your reason for company formation, the directors, and location. These documents include;
- Photocopy of shareholders passports
- Ideas for the offshore company
- Communication address
- Address of the resident secretary
- Articles of Association
- Share certificate
- Minute book
After presenting this information to the office of registration, it will take about 2 weeks before you can get the Certificate of Incorporation. However, it is important to factor additional 2 weeks required for opening a bank account.
Registering the offshore company using an agency
For those who do not want to go to Hong Kong or simply need to hasten the process, a better way to register an offshore company is through an agency. Agencies guide clients from the beginning to the last stage to hasten the process. They make the process very easy especially when it comes to drafting the articles of association, getting a resident secretary, and an office of operations.
If your company will not be very busy in Hong Kong, the agency can help you get a shared office and secretary. Ensure to select an agency that can be trusted, provides good secretary services, communication & scanning services, and a dedicated office. With careful planning, some people can run their businesses for very many months without having to go to Hong Kong.
Why you must go to Hong Kong to open a bank account ?
Now that the offshore company is already set, you must open a bank account so that your e-commerce site can channel money there, the credit card payments can point there, and make payment of bills easy. Unlike with registration of a company, most banks insist that you have to be present when opening an account. The banks want to see you and start a closer relationship as you get deeper into money matters.
While some people might argue that buying a shelf company is faster and easy, the effort, cost, and time are almost equal with opening a new company. The banks will insist that the directors of the company you are buying present themselves to the banking hall which can be an uphill task.
In most cases, you will be required to make several trips to Hong Kong, and success rate cannot be guaranteed. Therefore, look for an agency to assist you with everything and opening a bank account will be very easy and fast.