The location of your international business company (IBC) can be of the utmost importance. Amazingly, there is a huge selection of countries waiting for you to incorporate within their borders. These various jurisdictions (locations) each offer something different: tax structures, levels of privacy, ease of access….However there is one important feature that should not be overlooked—location.
Are your main business interests in China or another Asia Pacific location? Are your suppliers looking to do business with a more local banking institution? If this is your situation, you may be in a great position to set up an offshore company based in Hong Kong. If so, it is also recommended that you utilize the fine and well regarded services of the Hong Kong banking institutions in tandem.
Hong Kong is one of the longest established offshore centers. Similar to the IBC set up in the British Virgin Islands, as long as the business that you conduct is outside of Hong Kong, you are no longer subject to taxation form the Hong Kong/Chinese tax authorities. There is also no requirement to file financial statements and no audit is required.
Because of its long standing good name, Hong Kong has become synonymous with excellent banking and business operations. Its close proximity to China and its longstanding relationships with the Chinese market make it an exemplary location for those wishing to do business with China. These banks are no stranger to foreign companies, and strive to provide only the best in banking services. This includes worldwide access to accounts and other perks associated with fine customer service.
In summary, here are some of the advantages of establishing a Hong Kong international business company:
- The best and closest gateway to mainland China.
- One of the most respected financial centers in the world.
- Incorporated within 7-10 business days.
- Hong Kong-based companies are regarded as reputable.
- No tax on dividend income and capital gains.
- All business done outside of Hong Kong is tax-free.
- Business carried on inside of Hong Kong is taxed 16.5% (one of the lowest in Asia).
- Minimum paid-up capital is not required