Hong Kong -- (ReleaseWire) -- 03/06/2014 -- ICO Services, the international company specialized in the formation of offshore companies and offshore banking, has recently expanded their services to the Asian world by launching their service of setting up a company in Hong Kong.
This business extension means mainly providing access to a low and simple tax system and, even better than that, to a free of taxes system if the company established here is NOT doing any business here but abroad.
Why establishing a company in Hong Kong?
“We are eager and proud to provide our customers open access to a low tax system right in the business capital of Asia. According to Forbes, Hong Kong is among the top 10 tax havens in the world. Setting up a company in Hong Kong, the best location across Asia and internationally, has huge benefits for any company around the world as it is a fiscal paradise providing access to China, a growing market of a 1.3 billon people”, said an ICO Services executive/official.
Hong Kong is a special administrative area allowing free movement of capital, goods, talent and information, where it is entirely permissible to conduct business with China or any other country in the world without being subject to tax. The government has a laissez-faire approach to business activities which attracts a lot of foreign companies and corporations overwhelmed by the fiscality within their own countries.
In addition, Hong Kong is a first-class financial center located within 4 hours flight time from all the key markets and within 5 hours flight time from half of the world’s population. And the Basic Law of Hong Kong stipulates that both English and Chinese are official languages in Hong Kong.
Incorporating a business in Hong Kong is fast, wise, simple and cost-effective. This global business city ranks as the 4th easiest place to do business by the World Bank’s Doing Business Survey, the place where it can take only two weeks to legally incorporate a company.
Zero taxes if the company does business elsewhere
The most important benefit of setting up a company in Hong Kong is the tax system, the lowest in Asia Pacific and the 3rd lowest in the world. This system allows not paying any taxes if the company's clients, management, personnel or suppliers are NOT in Hong Kong and the products for sales are NOT stocked here.
Moreover, registering a company in Hong Kong requires NO capital, only one director and one shareholder. There are no residence requirements for company directors or shareholders, either individuals or corporations.
And even though someone chose to settle in Hong Kong due to the international schools, the high standards of healthcare and the cosmopolitan environment, the tax rate rises to maximum 16.5% on profits made during the year while maximum salary tax rate is 15%. Foreign companies can register and carry on business in Hong Kong if this is in their advantage. There are no sales or withholding tax, and no tax on capital gains or dividends or an individual’s estate.
The financial and banking environment is excellent, and there are no exchange controls. International shipping operations are exempt from profits tax, and no profits tax is put on overseas earnings. Even more surprising than that, there are no goods and services taxes and zero duty on wine and beer…
According to Hong Kong law, there are different company structures to suit different business requirements, but the most commonly used company structure is a Limited Company. Another frequent choice includes registration of an office of the parent company.
Through ICO Services, it is NOT even required to travel to Hong Kong to set up a company as our specialists take care of everything and assists all clients in company formation and management issues in order to start and run more effectively their Hong Kong business.
Direct access to a market of 1.3 billion people
For almost two centuries, Hong Kong’s proximity and close relationship with China has turned this densely populated area in the business gateway to China.
Despite their close relationship, Hong Kong practices a high degree of autonomy from the China, with different executive and legislative powers, but it is the most preferred entry point to China for businesses. But due to the same relationship, CEPA, a free trade agreement between China and Hong Kong, allows local companies preferential access to the China market and all goods qualified as Hong Kong origin are exported to China tariff free.
For more information about Hong Kong company formation, visit our website:
+60 3 6209 9910 Ext: 1