The reasons are diverse as to why investors set up shop in the city. The opportunities provided by the offshore company registration are not different from other offshore location. The tax free haven is beneficial to offshore investors who own companies running no business operations on the Island.
It is cheaper to start and register a company in the cities since company registration in the cities is relatively loose. Learn more about Hong Kong Company Formation at hong kong company formation. When it comes to forming shell companies, these will come in handy.The total cost for starting the company is quite cheap.
As a matter of fact, it is quite dangerous dealing with shell companies in this jurisdiction.They mostly lack any physical presence in the city.In the event that a dispute emanates from any transaction, it is not possible to remedy any problem on the island in case a dispute arises. Transacting from China poses no security concerns since you are considered as transacting from Hong Kong.
There are some companies that will go for opening a bank account from a foreign bank.The reason for this is that banks run by the state are known to be very strict in opening company accounts.Actually, it is safer to have a company account in the state-run banks on the mainland. It will be much easier to launch a complaint.
The international major banks being in vicinity is an added advantage to starting the offshore company.The banks boast wide international networks of branches. These big banks enjoy the trust of many business operators.
Another important thing to understand is that Hong Kong and China lack exchange control. It is true that the banks do not charged any withholding fee, so long as the deposit has been made. It is not hard at all to deposit the money. Also, transferring and withdrawing the funds enjoys similar terms.The truth is that the banks operate tax free and without any other fees.
Again, banks in this location guard a customer’s information with unequal zest. A customers prior consent is required before disclosing the information. Read more about Hong Kong Company Formation at Asia Explorer. This law is however exempt for customers involved in criminal activities as required by international law. These activities are like money laundering or other crimes related to the same.
It is easy to form a company in these cities. Your presence in the Island is not required. You will enjoy a tax haven and there is low tax rate.It is also worth noting that your company will automatically benefit from a proper legal system. There is no need for foreigners who do not run businesses in the city to fear. Forming a company in Hong Kong and China is not hard. Learn more from https://en.wikipedia.org/wiki/List_of_companies_of_Hong_Kong.