Hong Kong company formation and offshore bank account open for the small business has recently become extremely popular among people wanting to establish offshore companies. Hong Kong is a particular administrative region of the People’s Republic of China, after all, and is home to a completely different system of law, following those of English customary law. Company formation in Hong Kong is also comparatively simple. It is not surprising that the processes involved in forming a company in any other part of the world are considerably more complicated.
Hong Kong offers the ease of use that most people expect from Hong Kong company formation and bank account in a foreign country. Companies can be registered online via a company formation service provided by the banks in Hong Kong or anywhere else in the world. There is no need for a foreign national to be personally present at the register of companies when he makes an application for a company formation in Hong Kong. His application will be accepted if he signs the consent form provided online. An appointed representative will oversee the signing of the document by the applicant.
The advantages of offshore corporate formations in Hong Kong extend far beyond the registration process’s apparent difficulties. The rules governing companies in Hong Kong are exceptionally simpler than anywhere else in the world. Companies must have as much of their staff on hand to answer calls and interact with customers. It means that the time spent answering customer calls is maximized.
Also, the rules for incorporating companies in Hong Kong are straightforward. Besides providing a simple company registration process, most offshore jurisdictions provide for the simplest of corporate procedures. For example, there is no need to obtain special permits for putting up a new company from the Hong Kong government. Neither do you have to deal with red-tape, such as getting financial documents in person? Thus, many entrepreneurs prefer to set up Hong Kong companies rather than traditionally listed with the Chinese authorities.
Many entrepreneurs prefer to incorporate their business in Hong Kong rather than establish it in China because setting up a Chinese territory can be very costly. The paperwork involved in incorporating a company in China can be complicated, and the resources needed to run it can be scarce. On the other hand, all required for establishing an offshore company in Hong Kong – a business address, a nominee director, and shareholders – is relatively simple to obtain.
Of course, company formation in Hong Kong has other benefits besides the apparent reduction of taxes. Companies have access to the global market without competing with local companies based on their home country’s business culture. With the advent of globalization, multinational corporations can access markets where they would otherwise not penetrate due to local laws and regulations.
One of the other significant benefits of company formation in Hong Kong that draws many local business people is the ability to tap the financial expertise of corporate finance professionals with ties to the banking system of Hong Kong. These corporate finance experts can assist entrepreneurs in creating a new corporate framework that maximizes profits. They also can advise on setting up a corporate bank account and ensure that payments are made promptly. These corporate finance professionals can also help an entrepreneur establish a new credit line if one is necessary.
The ability to cut the cost of doing business in Hong Kong through incorporation has other benefits. Many business people are attracted to offshore companies’ attractive profit margins because they can minimize their exposure to taxes through several methods. Business formation in Hong Kong and incorporation do not affect a company’s taxable income in any way. It means that most of the benefits of incorporating a Hong Kong company can be enjoyed by multinational companies with local offices there. For a small local business person, these benefits offered by company incorporation in Hong Kong can provide substantial savings that translate into more company profits.
Hong Kong company formation and bank account