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Information About Hong Kong Offshore Companies

Hong Kong is quickly becoming a favorite offshore jurisdiction. This is because of the favorable tax regime that exists for Hong Kong companies. Hong Kong companies are not restricted to doing business only in Hong Kong and therefore can be used for international business purposes.

Hong Kong offshore companies are easy to form and are regulated within a legal framework similar to that of English speaking offshore jurisdictions since Hong Kong was once a British colony. Hong Kong offshore company law is a mix of both English common law and local legislation. Hong Kong offshore companies operate under an independent regime despite the fact that Hong Kong is considered an administrative region. In fact, like other laws, Hong Kong companies laws enjoys many Hong Kong based benefits in that where legislation in Hong Kong is concerned, it deals principally with areas such as national symbols and emblems.

Hong Kong offshore companies therefore operate under a system similar to that of Commonwealth nations.

Hong Kong companies are taxed on a territorial basis. In other words, there is no Hong Kong offshore company regime per se, however a Hong Kong company is tax liable only if it does business in Hong Kong and generates income there. A Hong Kong companies that is based overseas and does not earn any of its revenue in Hong Kong will not be liable for Hong Kong taxes.

Hong Kong offshore companies can be formed by both local and foreign residents since there are no restrictions on who can register companies in Hong Kong and have them for overseas/offshore use. This is described as a level playing field and local residents of Hong Kong can too benefit from having a Hong Kong offshore company.

Except given the work permit and license requirements for non-residents of Hong Kong who wish to register Hong Kong offshore companies, local residents and non-residents are considered to be the same for Hong Kong offshore company incorporation purposes.

As a result of this system for Hong Kong offshore companies resident and nonresidents of Hong Kong are liable for the same taxations rules and must comply with the same laws for Hong Kong offshore companies.

A Hong Kong offshore company is registered at the Registration Office of the Inland Revenue. A registration certificate is issued upon successful completion of Hong Kong offshore company formation. Every year, a Hong Kong offshore company is required to get a registration certificate (renewal certificate) for a cost stated by the Inland Revenue. Hong Kong offshore companies are required to display their certificates at the place of business. Fees that Hong Kong companies offshore must pay yearly are the annual registration fee and the certificate fee. A Hong Kong company can apply for a 3 year certificate to avoid having to renew its certificate every year and be able to do so at a reduced price.

Hong Kong offshore company formation fees if the company has limited liability and a share capital consists of a set application fee and a capital fee. The capital for Hong Kong offshore companies must not go beyond USD30,000 and is applicable to every part of 1000 dollars in Hong Kong currency on the nominal capital of the Hong Kong offshore company


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