Why to set up offshore company in Hong Kong

Today Hong Kong is a dream city, attracting not only its modernity and developed infrastructure, but also the cleanliness of the city streets and the extraordinary beauty of the scenery.

Published 2023-03-24, by ,

Why to set up offshore company in Hong Kong Monarchie Forum

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It combines untouched nature, ancient Chinese quarters, the glittering world of neon signs, rushing highways and majestic skyscrapers in some amazing way.

Today it is a huge metropolis, the world's fourth-largest financial center, where tremendous opportunities await businessmen who want to start and run their own business. For business people who want to start their own business, Hong Kong is very attractive in many business positions. The organization of business in Hong Kong is simple and straightforward, with a flexible taxation system and a transparent legal framework. If you organise your business properly, you can count on the fact that your business will go uphill and you will have a stable income.

To open a company in Hong Kong is not particularly difficult. Registering a business takes a small amount of time. It can be done remotely, using Internet channels.

If you do decide to register a business in person, however, you must first obtain a business visa. If you do not have one, you will have to register your company through an authorized secretary. Fear not: registration agents will do everything quickly and professionally. For a small fee they will handle all registration formalities, freeing you from paperwork. However, familiarizing yourself with what you have to go through when registering is necessary.

See also: set up offshore company in Hong Kong

Stages of registration of the enterprise

  • choosing a business name (it is better to have 2-3 options); checking with the Registry for the uniqueness of the name;
  • registration of the name in the Registry;
  • Submission of company documents to the "Department of company registration";
  • After receiving the certificate of registration of the company within 2 weeks you should inform the Registrar of the legal address of the company and information on the appointment of a secretary and director;
  • open an account with a Hong Kong bank;
  • register the company with the Hong Kong Revenue Department.

How to get government subsidies for your business in Hong Kong

In addition to an affordable tax regime and an extremely efficient system, the Hong Kong government also offers numerous grants and financing schemes to small and medium-sized enterprises (SMEs, in English).

Here are some examples:

  • The SME Export Marketing Fund (EMF) provides financial help to advertise your company outside Hong Kong;
  • The SME Loan Guarantee Scheme (SGS) helps your company get a loan;
  • The Innovation and Technology Fund (ITF) aims to financially help technology and innovative companies;
  • The Social Innovation and Entrepreneurship Development Fund (SIE Fund) provides resources to NGOs and other organizations working to reduce social exclusion, poverty and similar problems;
  • The Patent Application Grant helps businesses and individuals protect their intellectual property by registering patents.

Note that the Hong Kong government defines an SME as a local company that employs fewer than 50 people in Hong Kong (for a non-manufacturing company) and a local company that employs fewer than 100 people in Hong Kong (for a manufacturing company).

Also note that each financing scheme has its own eligibility criteria and that these criteria may differ greatly depending on the financing scheme chosen.

Do I need to live in Hong Kong, to open and run a company?

No, it is not necessary at all.

However, if you want to live in Hong Kong, then your company can apply for a business or "investor" visa on your behalf. Note that to get the visa you will have to show that your company brings benefits to the city of Hong Kong, be it in terms of local people hired as employees, volume of taxes paid, innovation, and so on. In short, if you simply have a shell company, don't expect to get a visa.

Do I have to travel to Hong Kong to open the bank account?

If you decide to open the company's bank account at a Hong Kong bank, yes, you will have to go in person to the appointment with the bank. In case, however, you decide to use an offshore bank account, then you may not have to travel to Hong Kong.

Can an agency handle the opening of the company also handle the accounting?

It depends on the agency. The one we recommend can also handle your company's accounting.