Nature of offshore companies
Why set up a Hong Kong offshore company?
Offshore companies can conduct their business activities outside the countries where their stakeholders or owners reside. Offshore companies incorporated in Hong Kong are exempted from paying corporate taxes as long as their income source is from outside Hong Kong. Companies in Hong Kong can also be registered with a low paid-up capital of US$1. It is one of the benefits that attract most people to incorporate an offshore company in Hong Kong.
A Hong Kong offshore company is often used by investors to legally minimize international taxation since they do not pay corporate income tax, especially on the foreign-sourced income. The other benefit of incorporating an offshore company in Hong Kong include exclusion from capital gains tax and withholding tax on the earnings remitted overseas.
Hong Kong has signed more than thirty-six double tax avoidance treaties that make its offshore companies a great holding vehicle. These make Hong Kong one of the most preferred states to do business. If you are not aware of Hong Kong’s taxation system, then you need not worry since we have a qualified accountant who will help you with all your taxation obligations to ensure that you minimize your taxation expenses as well as remit them in time.
Hong Kong equally offers a gateway to penetrate the Chinese market. Its proximity to China has numerous benefits that include the possibility to enter Chinese which is beneficial since China has a relatively larger population and thus an increased number of potential customers.