There are several reasons why you should investigate incorporating your business in Hong Kong. You may be looking to expand your business, change your business name or get a new passport for your company. Regardless, the benefits of company formation in Hong Kong are too numerous to ignore. Here is a shortlist of some of those benefits:
You will have greater company flexibility – The limited company formation procedure in Hong Kong allows you to choose between different options. Depending on your situation, you can have newly established Hong Kong incorporation services or continue to keep your existing company. In addition to having more options, you also have more say in how your company is run. Enjoy a fully licensed business environment. You are free to choose the business name freely, even if it’s already in use by another company.
Tax benefits – Hong Kong company formation gives you a choice of incorporating as an S corporation, a C-corporation, a partnership, or an unincorporated business. If you include an S or C-corporation, your company will enjoy more significant taxation benefits. Your chosen accountant or registered office address will be used as your company’s address for tax purposes. As for unincorporated businesses, your business will only be considered a sole proprietorship, which does not entitle it to deductions and corporate benefits granted to corporations.
Registration with the Hong Kong government – Companies can achieve registration by going through the Hong Kong authorities. It would include having a business license from the Office of the Secretary of State. The company would then be able to file its Articles of Association with the Hong Kong Corporation Registry. The next step would be for the registration fee to be paid. Note that an additional annual registration fee of an additional $500 is charged for companies outside of Hong Kong. Once the registration is done, all payments are paid, and the Hong Kong authorities now recognize the company as an authorized company.
Obtain a business certificate – To become recognized, your company must obtain an official business certificate from the Hong Kong authority. After receiving the business certificate, your company becomes eligible for obtaining a business license. Note that receiving electronic forms of certificates is preferred by most authorities. They require no printing costs and are more convenient on the part of the issuing source. You could also easily update or change the information on these electronic forms.
Low rate of taxation – Many companies in Hong Kong are subject to high tax. However, there are still many advantages that you can enjoy when you incorporate them. Most importantly, the low taxation rate is one of the key benefits of incorporating in Hong Kong. The low tax rates allow small businesses in Hong Kong to generate a higher income from their revenues. The low tax rate enables new entrants to expand their business relatively easier than local business people. Plus, maintaining the standard of living in Hong Kong has become increasingly more comfortable.
Access to offshore company formation – Another advantage of incorporating is that it makes it easier for you to access other offshore company formation options. One of these options is to have an offshore company in Guernsey. In addition to this, you can also choose to incorporate in Switzerland, Panama, Belize, Seychelles, or Jersey. These countries are popular offshore company registration destination because of their stable economy, low tax rate, an outstanding reputation in the business sector. The land that you decide to incorporate in should be a safe country to do business.
Access to several international banks – Companies can establish a permanent company address in Hong Kong without changing their current location. It is because they can maintain an active bank account at an attractive place. Some of these banks are branch offices of big international banks. You can also use your bank account as the company’s bank account. It makes it easy for you to access several international banks and access different corporate documents, such as corporate seals and corporate documents with unique features and challenging to find counterparts in your country.