Every business needs an advantage and the shrewd businessman knows where to look for them. It is in the taxes that you can save the most. This makes Hong Kong such a haven for new businesses.
Help from the service providers
To understand the idea of company formation in HongKong, one must understand the whys and wherefores of the process of offshore company formation. First, anyone can form an offshore limited liability company in Hong Kong. You will get help from the private assistance firms located in Hong Kong. The legal structure in Hong Kong is such that it favors the formation of foreign companies.
When you set up an offshore HK company, you pay tax for anything you earn in Hong Kong. This amounts to 16.5% of the profit. If your company does not make any profit in Hong Kong, meaning you make all your profit in some other place overseas, then you do not have to pay any tax. You can imagine how pleased the businessman is when he is able to save such a big packet.
Start the process
To begin the process of company formation, one must download the application form from the website of the company formation service provider and fill it. You must pay the set-up fees, and submit the application along with your passport and the relevant documents such as address proof. The service provider will go through the application and begin the process for setting up your company.
In fact, when the circumstances are right, you could set up the company within the day and start operating by evening. The company formation in Hong Kong is that simple. The assisting firms will cover all the legal aspects and register the company for you. You get the Block File containing all the legal documents related to the opening of the account. It will have a registry of shareholders, the director, the owner, the transfer of shares, the business certificate, and the certificate of incorporation.
They provide, free from their side, the appointment of a Company Secretary, and provision for communications such as a public telephone line, public fax line, a registered company address, a company business address, and collection service for mail. You do not even have to rent an office in Hong Kong to get started. And when you pay the annual maintenance fees of $1,300, they will prepare the annual returns and file it for you at the Hong Kong Companies Registry.
Filing the tax returns
The service provider will then apply and collect the Hong Kong business registration certificate. They prepare and issue Declaration Reports as required by the Hong Kong government. This will state that you are non-business operating in Hong Kong. Then, they fill up the Profit Tax Return after applying for Specific Power of Attorney for filing tax returns.
You also get all the benefits you got when you started the company formation process. You can get special licenses for Partnership Companies, Sole Proprietorship Companies, Public Limited Companies, and more if you so desire it.