The overseas offshore company registrations will be still alive in 2013. With the Hong Kong local bank refused BVI and Cayman companies to provide bank account services, more and more investors are beginning to register a Hong Kong company.
According to the data released by the Registrar of Companies in Hong Kong, as of the end of 2012, the total number of Hong Kong local companies in the register of companies reached 1,044,600, compared with 955,400 in 2011; growth rate is more than 9% (http://www.cr.gov .hk/en/publications/press20130113.htm).
Therefore, what is the force in the flock to attract overseas investment to Hong Kong?
1. The Global Freest Economy
On January 10 of 2013, the Heritage Foundation and the Wall Street Journal issued “Index of Economic Freedom” report, Hong Kong named Global Freest Economy in the first place with 89.3 points for 19 consecutive years. There is very free flow and out of people, goods and capital in Hong Kong. At present, Hong Kong has signed visa-free agreements with more than 100 countries, and visa-free exchange travel plans with the Pearl River Delta will come too. In logistics, there are developed land, sea and air transports in Hong Kong, and implemented zero-tariff policy on imported goods except tobacco, alcohol, etc. In addition, Hong Kong has no exchange controls, and a variety of foreign currencies can be readily converted to mobilize.
2. World’s Financial Center
There is a sound financial system and well-developed banking sector in Hong Kong, Hong Kong registered company can carry out remittance transactions to the countries of the world, in addition there are more than 200 kinds of financial services can be operated via the Internet and electronic trading services by banks. On this basis, the enterprises can get more credence and credit for financing. Conpak CPA Limited based in Hong Kong, has abundant bank resources and business advantages. Therefore, Conpak can assist the client apply SMEs loans from the Hong Kong government.
3. Low-tax Environment
There are low tax rates and less tax types in Hong Kong, and tax on offshore profits is zero. Therefore, many international institutions achieve a reasonable tax avoidance purpose by using the tax advantages of Hong Kong. The investors of Hong Kong registered company generally only need to pay two types of taxes: one is the disposable registered capital of stamp duty, the tax rate is one of the thousands, this tax is determined by the actual registered capital; another is profiting tax, the tax rate 17.5%, this tax is calculated based on the actual earnings (net profit).
4. Geographical Advantages
Hong Kong has strategic geographical location, which has the frequent economic and trade exchanges with mainland China. Hong Kong has been joined the bridge between mainland China and the world. Many mainland enterprises registered company in Hong Kong as a springboard for overseas expansion; a growing number of overseas companies and financial institutions also set up their headquarters, branches or offices in Hong Kong enter the Chinese mainland market.
5. Freed Choice of Company Name
Hong Kong allows the company name to contain the region and the nature of the industry, such as: China, Beijing, Zhejiang, Hong Kong, United States, France, International, Asian Institute, Press Association, Group Holdings, industry, development, investment, finance, fraternity, science and technology, health care, fund, association and other words, also can register a Chinese company name.
6. Less Restrictive of Operating Range
In addition to the illegal business, Hong Kong Limited Company can carry on any business, such as clothing, furniture, jewelry, electronic technology, financial, pharmaceutical, shipping and transportation, import and export trade, real estate, construction, decoration, information network, tourism, college, culture, publishing, associations, research institutes and other high-tech industries.
7. Low Registered Capital without Verification
There is no maximum registered capital according to the regulations of Hong Kong Government, but requires a minimum of 10,000 Hong Kong dollars. In addition, there is no verification requirements in Hong Kong and unlimited funds in place. Investors will be able to set up a company in Hong Kong without putting funds to banks.
8. Significantly International Status
The international status of Hong Kong is significant. Clothing, toys, culture publishing and other industries have a competitive advantage in the international arena. Many enterprises register companies in Hong Kong to improve the visibility of the brand and its own international status and image.
Improved financial system, free economic system and good business environment, no matter from which of indicators, Hong Kong are the unique charm of the best offshore registration. Conpak CPA (http://www.conpak.com) is based in Hong Kong, to become familiar with the policies and regulations as well as accounting, auditing, company registration, intellectual property and other operational practices. If you need to know more, please contact us and we will give you a more detailed interpretation.