Why & How to set up an offshore company in HK

About Hongkong:
Hong Kong's corporate law is strongly based on the British common law. Local businesses are regulated and Hong Kong regards itself as a low tax centre rather than a tax haven. Taxes are levied on profits, salaries and property with varying rates. Only profits derived in Hong Kong are assessable for taxation and genuine offshore transactions are not subject to Hong Kong tax, although the Inland Revenue Department (IRD) is extremely diligent in its determination of onshore and offshore profits.
Due to Hong Kong's role as a major trading and entry point to the mainland and Asia, the bulk of companies formed in Hong Kong are for trading purposes generally.

Hong Kong taxes are among the lowest in the world. The tax system is simple and favors offshore company setup. Hong Kong is ranked as one of the easiest places to do business in the world . it is one of the most popular jurisdictions for setting up an offshore company owing to its low tax regime, absence of foreign exchange controls, political and economic stability, ease of offshore company setup, etc.

Why set up an offshore company in HK:

1. reduce the loss of company tax
Hong Kong’s corporate income tax rate is 16.5%. There is no capitals gains tax, no VAT/GST, no estate duty, and no withholding tax on dividends or interest. Furthermore, foreign sourced income is exempt from tax in Hong Kong and there are no foreign exchange controls in Hong Kong. Thus, a Hong Kong offshore company that derives income from abroad is free from tax liabilities in Hong Kong. This is one the biggest advantages of Hong Kong Incorporation

2. Company set up quickly and register conveniently
Overseas offshore company registration process is very simple. You can entrust us with the registration, do not need the register people to carry out the operation in person at Register Site. General offshore companies such as Hong Kong companies, BVI company, DELAWARE companies, British companies will be approved to establish by the local government not more than 10 days. Established procedures are simple, low cost. Overseas companies can be set up usually under the conditions that at least one shareholder, one director and one shareholder buy one shares.

3. Avoid barriers to trade
An enterprise of export products to the United States, needs to apply for a quota and a series of related procedures, that needs to spend one to two times more than the cost. But if the enterprise has an overseas offshore company, it exports products to the offshore company, and then exports to the United States and other developed countries by the offshore company, tariff barriers can be bypassed to obtain duty-free treatment, and also be able to successfully bypass quota restrictions on exports.

Corporate Requirements (how to set up):

Chinese names are permitted and can be included on a company's Certificate of Incorporation. Each Hong Kong company must have a local secretary and a local registered office which must be a physical address and not just a Post Office box.

Each company must have at least one director and corporate directors are permitted for companies that are not subsidiaries of public listed companies.

The company should have at least one shareholder. Details of the company's directors, shareholders and secretary must be filed at the Companies Registry and are on public record.

Each year the company must submit an annual return and penalties apply for late filings and there is an ever increasing vigilance by the Companies Registry for this purpose.

All companies must obtain a Business Registration Certificate from the IRD and are required to file a set of audited accounts with the IRD annually.

Company names may be expressed in both English and Chinese characters.