Hong Kong has been ranked as one of the most affordable places to do business around the world. Setting up an offshore company in Hong Kong is easy and uncomplicated, without any unnecessary red-tape or bureaucracy. Plus, Hong Kong has adopted a beneficial foreign ownership scheme, whereby the shares of any company are 100 percent foreign-owned.
It enables a business owner to maintain complete control over his business, including hiring and firing staff. And all this is done on a tax-free basis. The same is true for any overseas entrepreneur who is opening a business in Hong Kong. However, the process of opening an offshore company in Hong Kong involves some essential steps.
In Hong Kong, entrepreneurs should be aware that they need to register their business with the government first, which is usually done through the Business Development Board (BDB). The BDB will process any applications for registration with the government and ensure that they meet the legal requirements.
As far as the process of setting up the offshore business is concerned, the businessman will need to take the assistance of a registered agent or representative. It will help him set up the business legally and save time and money.
The registered agent will advise the entrepreneur on the necessary formalities and processes involved in opening an offshore company in Hong Kong. He will also act as his legal adviser in case of any legal concerns or disputes.
If the entrepreneur decides to open an offshore company in Hong Kong, he will also need to pay a registration fee to the BDC. This fee covers the costs of maintaining a business registration number and maintaining a register of directors.
Once he has registered his business, the businessman must then obtain a license from the Business Development Department of the Government to operate his business. It is typically obtained after having a business plan prepared by an expert. After this, all other formalities are then taken care of it.
An entrepreneur can set up the company without being personally present at the company office as there is no need for him to sign any documents personally. Once this is done, he will be required to register the business in the Commercial Register. It is during this step that he will then be required to provide his business details to the BDC for approval.
After the business name has been approved, an application form will be sent to the business address. It will then require the businessman to submit documents that will prove his identity. These include a valid passport and a driver’s license. Some of these documents can be obtained at a business bureau.
When opening an offshore company in Hong Kong, the entrepreneur needs to hire a qualified company service provider to handle the entire setup of the business. An experienced company service provider will be able to assist with the formalities involved in setting up the business and maintaining the company smoothly and effectively. It will also ensure that any legal issues do not arise in the future.
In addition to hiring the right company service provider, the entrepreneur will also be required to provide proof of his bank accounts. These should have at least twenty-four-hour access, and the business should also have an efficient system for receiving money from customers and payments.
Other important aspects include ensuring that the company is appropriately set up to serve its purpose of providing tax benefits. It includes setting up the business in a way that is conducive to being a fully functioning and legitimate entity.
For starters, entrepreneurs should ensure that the offshore company they set up is registered in the right category. It will help them avoid unnecessary problems later on in case of any issues that could arise as an issue arises.