There are several reasons why so many people are choosing to open an offshore business in Hong Kong. Some choose to do this because they like the city and wish to live there, others want to be closer to their family members or friends, and others prefer to live in one of the most cosmopolitan cities in the world.
How to create a company in Hong Kong is a question many business owners ask when they are thinking about setting up an offshore business. They may not understand why so many offshore companies have set up there. Still, they soon discover that this small country of ten million people is quickly becoming one of the most popular places to open an offshore bank account or to operate a business.
A city like Hong Kong offers several advantages to the entrepreneur. The first advantage is obvious – it is very convenient to get around. The second advantage is that it is near the global financial centres of Singapore, New York, and London. These are three of the world’s busiest cities, and because they are close enough to Hong Kong, you can get to work on time, without having to worry about going over budget.
If you choose to set up an offshore company in Hong Kong, you can expect an extremely professional tax system. You will need to register your business in Hong Kong, and you may have to pay taxes in Hong Kong-based on your residency status, as well. However, if you are based in a country like the United States or the European Union, you can generally expect to pay taxes on a reduced scale, and even on a no-income basis.
One of the main differences between being a company owner in Hong Kong and being a company owner in another country is the number of legal restrictions that are involved. For instance, if you are in the United States, you are not required to register as an S corporation (an entity separate from its owner) to conduct international trade. In most cases, you are not legally allowed to own a business through offshore accounts in the Cayman Islands, or anywhere else in the Caribbean. In other countries, however, you are legally permitted to transfer assets to an offshore bank account and use that account to conduct business without having to get a license from the authorities.
Many people ask how to create a company in Hong Kong, particularly entrepreneurs who are thinking about setting up an offshore business for the first time. The answer is that if you want to find the right tax structure, you need to look at your options carefully. Depending on where you choose to establish your business, you may find that the best tax structure is a business with a permanent address in Hong Kong and a non-domiciled status or a company with a non-domiciled status in Hong Kong and a domiciled status elsewhere.
You also need to consider the kind of business you want to start. Some people who are interested in establishing businesses want to run a business in Hong Kong want to run a traditional office-based business. Others want to set up an online business, which will require them to have a different kind of business registration than they would have to have in another country. For example, if you run a catering service, you might choose to open an offshore company in Hong Kong, so that you can pay the high costs of business registration.