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Every year, Hong Kong attracts hundreds of tourists seeking an enjoyable vacation, but the city is more than a blissful tourist destination.

It is also a top choice for companies seeking to expand overseas as thousands of companies are registered in Hong Kong annually. 

The city attracts individuals, startups, established corporations, and multinationals seeking another location to set up companies for business operations and investment purposes.

Its economy thrives on international trade and investment from foreign companies and foreigners. 

Notably, the database of foreign companies with regional headquarters in Hong Kong has increased significantly over the years and more companies are still interested in registering a subsidiary or affiliate company in Hong Kong. 

The city has undoubtedly gained a reputation as a global business center amongst corporate investors and you may be wondering why companies are attracted to Hong Kong and if the city is actually worth the hype.

Here are 7 reasons why companies register in Hong Kong.

Ease of Registration

One major reason why companies relocate or set up subsidiaries and affiliate companies in other countries is the ease of doing business in those countries.

Businesses thrive in countries where it is easy to start and sustain a business.

Hong Kong has been ranked third in the World Bank’s Ease of Doing Business Index, scoring high points for its easy business formation process, ease of securing electricity connection at business locations, ease of securing construction permits, and a simple tax system.

Apart from the deserved recognition from the World Bank, the region has established investment-friendly policies that encourage investment from foreign companies in several countries across the world. 

Companies love Hong Kong because it’s easy to commence operations in Hong Kong.

Anyone can register a company digitally in Hong Kong within 48 hours and you do not have to be a resident of Hong Kong to do so.

You can register your Hong Kong company online without visiting the city. 

Starting a company in Hong Kong does not require complex or costly procedures and permits.

Also, getting the necessary business licenses is a relatively straightforward process.

There are also government-sponsored initiatives such as Invest HK that support foreign companies seeking to set register a company in the region.

Simple Tax System 

Another incentive for registering companies in different countries is tax.

Lower tax rates mean more profit for the company and most companies are seeking ways to maximize profit.

Hong Kong is considered a tax haven by entrepreneurs and investors and attracts many companies because of its simple tax system.

The corporate tax rate is relatively low and capped at 16.5% which is much lower than what is obtainable in most countries.

Also, offshore companies in Hong Kong are exempted from remitting income taxes.

Companies registered in Hong Kong do not pay taxes on dividends which enables foreign investors to gain maximum returns on their investment.

Sales tax, consumption tax, or value-added tax are also not applicable to companies in Hong Kong. 

There are also no withholding tax, capital gains tax, or estate duties payable in Hong Kong. Also,  import duties are imposed on only a few goods.

As a result of this low corporate tax burden, trading companies are able to maximize profit from their transactions. 

Apart from the low corporate income tax rate and non-applicable taxes in Hong Kong, the ease of computing and complying with tax obligations is another motivation for setting up companies. 

Tax computation is straightforward and companies can also file their tax returns digitally. 

Investment-friendly laws and policies

Companies are often on the lookout for countries with laws and policies in place to protect their investments.

Hong Kong provides a friendly regulatory environment for investors.

The Hong Kong government has established several investment-friendly policies and laws for startups and companies. 

For instance, the laws in Hong Kong permit a foreigner to be the sole shareholder of a company and appoint foreign directors to the company’s board of directors without any repercussions.

Thus, a foreign company can be registered in Hong Kong without appointing Hong Kong residents as directors or co-founders.

The only requirement is that the company secretary must either be an individual resident in Hong Kong or a firm with a TCSP license.

Many foreign organizations prefer to use a digital company secretary to fast-track their incorporation process and effectively manage their business operations. 

Foreigners can also repatriate profit easily without any restrictions and overbearing taxes.

There are also laws that protect innovation and intellectual rights and Hong Kong has an Intellectual Property Department charged with the responsibility of protecting intellectual property rights. 

Finally, there are no restrictions on property rights in Hong Kong as foreigners can acquire properties and rent properties in Hong Kong without any challenges.

Easy access to China and the Asian market

Location is important for business growth and companies are often willing to expand to locations with better growth opportunities, access to better resources, and a ready market.

Hong Kong has won many companies over,  due to its proximity to Mainland China and Asia.

As a result of its strategic location, Hong Kong is the ideal place for organizations seeking to tap into the available resources in China and Asia.

Consequently, the region attracts many trading companies and professional firms that render services needed by trading companies.

Companies also take advantage of the easy formation process to set up digital companies in Hong Kong.

They can handle the company’s operations from anywhere in the world while tapping into the Asian market and talent pool.

Also, companies registered in Hong Kong may be registered as Wholly-Owned Foreign Enterprises in China, which enables foreigners to legally conduct businesses in Mainland China. 

Top-notch banking services

Hong Kong not only boasts of a free economy but also has the right banking infrastructure in place to support its free economy.

The city is home to some fortune 500 banks offering bespoke banking services to Asian companies. 

The impeccable banking services in the region evolved in response to the demand for flexible financial services.

For instance, it is possible to open and operate a multi-currency account for your business in Hong Kong and many foreign companies operate multi-currency bank accounts. 

This makes it easy for companies to receive and make payments in popular currencies like the US Dollars, British Pounds, Australian Dollars, Euros, and the Chinese Yuan.

Also, companies spend less on currency exchange fees. 

This has cemented the country’s position as an international trade hub as companies located in Hong Kong can easily conclude transactions with companies in other countries. 

Hong Kong banks also offer digital banking and barrier-free banking services that make it easy for offshore companies and digital entrepreneurs to conduct transactions remotely.  

State of the art facilities and amenities 

Availability of basic resources, facilities, and amenities is important for any business to thrive in any location.

Companies seeking to relocate or expand to a new destination often consider the available resources and are keen on setting up companies in places with the right amenities for their business needs. 

Fortunately, Hong Kong has great amenities that make business operations easy and cost-effective. 

The country has a world-class transportation infrastructure with a functioning international airport that processes thousands of cargos and airlines flying to over 180 cities in the world, and affordable local taxis for movements within the city. 

There are also well-built office buildings for companies interested in operating from a physical office.

Companies also enjoy fast and efficient internet connections and telecommunication networks.

The healthcare system in Hong Kong is also developed with several private and public clinics delivering top-notch health care services.

Expats can also get health insurance coverage to access the hospitals and clinics at an affordable cost.

Highly skilled workers

Foreign companies often recruit skilled workers in any country they set up businesses in to commence operations.

Using a local workforce improves a companies reputation in the community and helps the compy tailor its services to the needs of the community. 

Hong Kong has highly skilled and educated workers that are mostly fluent in English and Cantonese.

This is further strengthened by Hong Kong’s proximity to mainland China which gives workers broad exposure to the international business scene.

Also, Hong Kong attracts foreign high-skilled workers who render bespoke services to companies set up in Hong Kong.

Companies registered in Hong Kong can tap into the city’s talent pool to commence operations and maximize the available opportunities.

 Conclusion

Hong Kong has garnered a reputation as a top business destination in Asia and is recognized by the World Trade Organization, World Bank, and other globally recognized business initiatives.

Thus, companies registered in the country enjoy exposure and are deemed reliable because they operate in one of the major commercial hubs in the world. 

Hong Kong’s reputation as an international business hub is well-deserved.  Not many countries have the necessary regulatory framework and resources to support foreign-owned enterprises. 

If you’re thinking of registering a company in Hong Kong, contact us for a seamless registration process. 

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Hong Kong is the venue for countless high-profile events hosted every year.

Right from hosting corporate events to assisting on individual ones, an event management company has a special place in the booming economy of Hong Kong. 

With life slowly coming back to normal after months of lockdown due to the pandemic, Hong Kong is once again on its way to becoming a popular venue for events across the industry.

Needless to say, there is no better time than the present to know the exact procedure of opening and operating an event management company.

What are the activities performed by an event management company?

An event management company is involved in managing and marketing a host of events including corporate, public, or even private events hosted by individuals.

These events can range from conferences, corporate parties, concerts, festivals, or conventions.

As the name suggests, the primary job of an event management company is to manage all the moving parts of any event to ensure that it is a successful one.

As a result, these companies are involved right from conceptualizing the theme, lining up logistical support on the day of the event, and hiring various service providers such as caterers, photographers, performers, etc. 

Starting an event management company in Hong Kong

Like any other company that carries out a specific business activity, the first step for starting an event management company is incorporation.

This involves choosing a name for the company, confirming availability, and submitting the relevant documents to the  Companies Registry.

For more details, you can check out our comprehensive guide on registering a company in Hong Kong. 

Once you receive the Certificate of Incorporation and Business Registration Certificate, you will need to apply for a specialized business license depending on the kind of events you intend to organize.

Here’s a quick summary:

Corporate Events

The following documents need to be submitted to the Food and Environmental Hygiene Department for obtaining a Place of Public Entertainment License:

• Certificate of incorporation and articles of association of the company
• Business Registration Certificate
• Address of the  Registered Office
• Copies of the recent annual returns
• Notice of Acceptance of Authorisation, signed by an authorized representative of the company. This should be supported by a resolution from the Board of Directors authorizing such a person. 

 You also need to submit a compliance report to the FEHD certifying that you fulfill all the criteria.

After that, FEHD conducts an inspection of the premise and issue you the license.

The validity period of such a license varies from 1 month to 12 months, and you will need to pay the license fee accordingly.

You can also be issued a Temporary Place of Public Entertainment License, which is valid for less than one month. 

Conducting Lotteries On-Premise

A Lottery License must be obtained by event management companies planning to host lotteries on-premises.

According to the Gambling Ordinance, a raffle or game that involves giving away prizes based on chance is defined as a lottery. 

The application form for the lottery should be made to the Television and Entertainment Licensing Authority (TELA) along with the following documents:

• A copy of your Hong Kong Identity Card
• A copy of the sample ticket for playing the lottery
• Articles of Association of the Company and certificate of incorporation
• A copy of the Business Registration Certificate
• A copy of the registered office address 
• Copies of the recent annual returns
• Notice of Acceptance of Authorisation, signed by an authorized representative of the company. This should be supported by a resolution from the Board of Directors authorizing such a person. 

Usually, TELA grants the license within 10 days. 

Trade Promotion Events

If your event management company plans to promote any business or a product through lucky draws, you must get a  Trade Promotion Competition License from TELA. 

The application form for the lottery should be made to TELA along with the following documents:

• A copy of your Hong Kong Identity Card
• A copy of the sample ticket for playing the lottery
• Articles of Association of the Company and certificate of incorporation
• A copy of the Business Registration Certificate
• A copy of the registered office address 
• Copies of the recent annual returns
• Notice of Acceptance of Authorisation, signed by an authorized representative of the company. This should be supported by a resolution from the Board of Directors authorizing such a person. 

Usually, TELA grants the license within 7 days. 

If you are organizing amusement games

If your event management company plans to organize amusement games such as fetes, funfairs, or bazaars, you need an Amusement with Prizes License along with a Place of Public Entertainment License.

TELA issues the Amusement with Prizes License.

You need to submit the following documents, along with the list of types of prizes and a brief description of the games that you intend to host.  

• A copy of your Hong Kong Identity Card
• A copy of the sample ticket for playing the lottery
• Articles of Association of the Company and certificate of incorporation
• A copy of the Business Registration Certificate
• A copy of the registered office address 
• Copies of the recent annual returns
• Notice of Acceptance of Authorisation, signed by an authorized representative of the company. This should be supported by a resolution from the Board of Directors authorizing such a person. 

Packaged Food for Sale

If your event management company is engaged in such businesses, you will need a Food Factory license from the FEHD.

You need to submit the application form along with the following documents:

• Certified true copies of the scaled metric layout plans of the premise.
• Certificate of incorporation and articles of association of the company
• Business Registration Certificate
• Address of the  Registered Office
• Copies of the recent annual returns
• Notice of Acceptance of Authorisation, signed by an authorized representative of the company. This should be supported by a resolution from the Board of Directors authorizing such a person. 

 You also need to submit a compliance report to the FEHD for verification as FEHD inspects the premise.

After that, the FEHD will issue the license and the fees will depend on the gross floor area of the premises. 

Pre-cooked Food for Sale

If you are planning to sell pre-cooked food as part of the activities of your event management company, you will need a Temporary Food Factory License issued by FEHD.

The application form, along with the layout of the premises should be submitted along with the following documents:

• certified true copies of the scaled metric layout plans of the premise.
• Certificate of incorporation and articles of association of the company
• Business Registration Certificate
• Address of the Registered Office
• Copies of the recent annual returns
• Notice of Acceptance of Authorisation, signed by an authorized representative of the company. This should be supported by a resolution from the Board of Directors authorizing such a person. 

 The temporary license is usually valid for 1 week. 

Events in Public Places

In case your event management company is hosting events such as operas, musicals, bazaars, contests, exhibitions, etc., in public areas, you need to obtain a Place of Public Entertainment License from FEHD.

You need to submit the following documents to the department: 

• Layout plans of the premises and the details of the adjacent buildings, lots, and public thoroughfares.
• Details of the Fire Service Installations.
• Diagrams of any structure that involves lighting, cooling, electrical, ventilation, or mechanical apparatus.

These documents should be submitted at least 42 days before the event. 

In addition to the above, your event management company also needs specific licenses for certain activities.

These are:

• Displaying advertising materials of films – Certificate for Advertising Materials which is issued by TELA 
• Public screening of a movie – Certificate of Approval issued by TELA
• Selling alcohol for consumption in the premises where the event is held – Liquor Licence issued by the Liquor Licencing Board
• Using or operating portable transceivers during your event – Private Mobile Radio Systems License from the Telecommunications Department 
• Organizing lion or dragon dance at the event – Lion Dance Permit or Dragon Dance Permit from the Hong Kong Police Force
• Organizing any pyrotechnics or non-pyrotechnics special effects during the events – Special Effects License or Discharge Permit from the Film Services Office

Need more? 

Given the various licenses and paperwork involved in setting up an event management company in Hong Kong can feel challenging.

To save time and resources, you should hire the services of a professional company such as Air Corporate.

Our team of experts can take care of the incorporation process and also help you with securing the relevant licenses.

Incorporate your event management company in Hong Kong in less than 48 hours with Air Corporate today.

Focus on your business. We take care of the rest.

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If you’re reading this, you’re probably already aware that there are benefits to registering your company overseas.

Hong Kong is a popular location, but why?

What are the advantages and disadvantages, and how do you do it?

Hong Kong is a popular site for offshore registration because it’s the gateway to China.

These days, it’s a laissez-faire business hub where businesses can enjoy numerous tax-haven levels of freedom to doing business and is home to millions of companies registered abroad who want to make the most of it.

If you want to do business in China, you need to register and pay taxes just like everywhere else.

For historical and political reasons, the laws and taxes in Hong Kong are set up to expedite that registration.

Today we’ll discuss the specifics of registering in Hong Kong – what it is, why companies choose Hong Kong, the tax situation, and how to actually register.

By the end of this article, you’ll know exactly why and how to register in Hong Kong.

What is Offshore Company Registration?

Offshore registration is a fancy term that means to register your company in a foreign market.

You can’t just open a business in a country – you’ve got to get the government’s permission, set yourself up to pay taxes, etcetera.

Registration is the start of that process.

China’s economy is the fastest-growing major economy in the world and registering in Hong Kong is the simplest way to enter that market.

Registration is a normal part of doing business in any country and registering a business in Hong Kong is surprisingly simple.

Why Hong Kong?

China has made no secret of the fact that it wants to become the world’s dominant economy.

To do that, it has aggressively pursued a policy of attracting foreign investment and technology.

Hong Kong is a pivotal part of that strategy.

While under British rule, Hong Kong served as an economic gateway to the East.

It combined Western financial systems and know-how with the logistical advantages of its location.

China maintained Hong Kong’s status as a regional economic powerhouse when it took over.

In fact, China has gone to great lengths to ensure that Hong Kong is still an attractive location to register or even incorporate foreign companies.

As a result, Hong Kong enjoys a variety of perks such as favorable tax laws, easy access to foreign exchange markets, and a highly streamlined registration process.

Additionally, Hong Kong remains far more Westernized than China.

Western companies often find Hong Kong’s legal, cultural, and economic systems much easier to navigate than those in the mainland.

Registration in Hong Kong is sufficient to meet the legal requirements of entering the mainland China market.

It’s worth noting that there are considerable advantages to incorporating in Hong Kong.

The basic tax rate in Hong Kong is about 16.5%, and there is no capital gains tax.

In fact, Hong Kong’s tax system was specifically designed to make it an attractive location to incorporate.

So Hong Kong is a Tax Haven?

No, they just have low taxes. If you’re looking to hide assets or pursue other paths of questionable legality, Hong Kong probably isn’t the place for you.

The government of Hong Kong goes to great lengths to reinforce this distinction; expect to abide by the rule of law in Hong Kong.

Hong Kong’s is generally amicable to foreign corporations, but it’s not in the business of helping corporations break laws in their home country.

Maintaining low taxes while avoiding the impression of being a tax haven has been part of China’s strategy to attract foreign investment, and it’s worked.

A few examples of major companies located in Hong Kong are the Bank of China, the Bank of East Asia, and several other major Chinese companies.

Additionally, multinationals such as Esprit Holdings, Jardine Matheson, and PacSafe all have their headquarters in Hong Kong.

How do I Register My Company in Hong Kong?

It’s surprisingly simple. As mentioned earlier, China is keen on attracting foreign companies, so the entire process is extremely streamlined.

There are really only four basic steps:

1.   Come up with a valid name for your company. Hong Kong’s Company Register Office released a pdf with naming guidelines to help. 
2.   Decide whether or not your company will be limited by shares or guarantees. 
3.   If your company will be limited by shares, the liability of members is limited by the articles of association to the amount unpaid on the shares respectively held by them. This is a rather legal topic that is outside of the scope of registering your company, however, it’s logistically fairly simple.
4.   If your company is limited by guarantee, there is no share capital and the liability of members is limited by the articles of association to the amount that the members respectively undertake to contribute to the assets of the company in the event of its being wound up. Non-profit-making organizations are usually registered as guarantee companies. Again, this is directly from the official Hong Kong Company Registry website.
5.   Register these forms electronically using this link:

•   Form NN1 – Application for Registration of a non-Hong Kong company
•   A certified charter or equivalent
•   A certified copy of the company’s certificate of incorporation or equivalent
•   A certified copy of the company’s latest published accounts
•   Notice to the Business Registration Office (IRBB2)

Now just collect your Certificates of Registration upon approval.

Welcome to Hong Kong

Registration typically takes no more than a week once these steps have been completed.

There are companies in Hong Kong whose sole business is guiding foreign companies through the incorporation and/or registration process, but the process is simple enough that most companies can do it on their own.

For more information, check out the Hong Kong government’s official Company Registry Website, found here.

Does this seem like a bunch of busy work you don’t want to deal with?

Register with Air Corporate and get a registered offshore company approved in under 48 hours.

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Setting up a new venture is a dream come true for many.

However, starting a company where you reside may not always be feasible or a practical solution due to higher corporate taxes (sometimes as high as 35%) and regulatory concerns.

In such cases, choosing an offshore jurisdiction with a favorable legal regime that provides optimal levels of financial privacy, lower levels of taxes, and a conducive atmosphere to do business is an attractive option.

Choosing an offshore company jurisdiction is not a cakewalk.

Several factors need to be considered before zeroing in on one.

The truth is that there is no perfect jurisdiction that will work for all types of businesses — you need to be strategic about your choice.

So here is a roundup of the best offshore jurisdictions you can consider this year for your business:

1. The Bahamas 

The Bahamas, a collection of 700 islands in the Caribbean, has been a popular offshore jurisdiction to set up a company, thanks to the flexible business structure and tax exemptions it offers. 

Offshore companies in the Bahamas are known as International Business Companies.

They are not subject to any exchange control laws (unless such companies conduct any business with residents in the Bahamas), which directly impact the repatriation of profits. 

The International Business Companies (IBC) Act, 1990, under which the offshore companies are registered in the Bahamas, also offers a high degree of financial privacy to such companies.

Offshore companies also have no tax liability to discharge in the Bahamas.

Companies can be incorporated through a registered agent within seven days.  

However, communication is a huge challenge in the Bahamas as most of the population doesn’t speak English.

Moreover, the crime rate in the Bahamas is very high, making it slightly unsafe. 

2. United Arab Emirates

The United Arab Emirates is the crown jewel of the Middle East, has emerged as a popular offshore destination for investors looking to start a new venture. 

Offshore companies are exempted from paying any corporate or personal taxes.

There is also a 100% exemption on paying any taxes on import or export of goods or any capital gains.

In addition, under the newly introduced VAT regime, only certain businesses that exceed the prescribed threshold of the total taxable sales and imports of a business need to be registered with the Federal Tax Authority and submit the VAT return.

There are also no restrictions on the repatriation of profits.

The free trade zones of the UAE are an option for setting up offshore companies too since they offer more flexible terms of ownership of the investments.

However, certain business activities are not permitted in the UAE.

This makes it necessary to seek advice from a business consultant who can increase your overall costs of setting up a company in the UAE. 

3. Cayman Islands

If you are looking in the Caribbean, Cayman Islands is an option for investors desirous of setting up offshore companies. 

When you have a company in the Cayman Islands, you are not subject to corporate or personal taxes.

There are also no taxes payable on capital gains or profits from investments.

You can repatriate your profits without any additional deductions.

The only obligation is the payment of an annual licensing fee to the government which is based on the authorized share capital of each company. 

However, the Cayman Islands levies high import taxes that may make it challenging for a company to operate a business and earn higher profits. 

4.Singapore

Singapore is a tax-friendly economy that is home to several multinational corporations.

It has no exchange control laws, making it easy for any holding company set up in Singapore to repatriate dividends from offshore subsidiaries directly to Singapore without any tax liability. 

Singapore is also a party to several free trade agreements (FTAs) and Double Taxation Avoidance Agreements, which minimizes the trade barriers.

Due to the absence of capital gains and dividends tax, foreign investors find it attractive to set up companies in Singapore.

It has been consistently voted as one of the top countries where it is extremely easy to do business.

Strategic geographical location, the presence of a skilled workforce, and a stable political climate are some of the other reasons that make Singapore a top choice for many. 

However, it is mandatory to have at least one director of the company you are setting up to be a resident of Singapore.

Additionally, if you are employing any foreign nationals to work at a company set up in Singapore, you will need to obtain work permits from the  Ministry of Manpower, which can be a challenging task. 

5. Isle of Man 

If you are keen on exploring an option that serves your customers in the EU, Isle of Man is a top choice on account of its economic stability and a simple tax system.

The location of Isle of Man minimizes the EU supply chain and makes it incredibly easy for businesses to meet the needs of their customers while making profits. 

There are no capital gains taxes or wealth/inheritance taxes payable in the Isle of Man.

It also offers incentives to businesses for relocating to the jurisdiction.

In fact, the government has started a Freedom To Flourish project that offers easy access to senior government officials for support and advice.

Due to a comprehensive apprenticeship program in place, corporations also get access to a skilled talent pool. 

However, since the Isle of Man has a very small population and is already home to several companies engaged in finance, tech, e-gaming, etc., you may find the economic landscape fiercely competitive and end up having low-profit margins. 

6. Hong Kong

When it comes to incorporating a company in an offshore destination, nothing can beat Hong Kong.

Ranked as the world’s freest economy as per the Index of Economic Freedom, Hong Kong has emerged as one of the best offshore company jurisdictions.

It is one of the world’s largest financial centers and has consistently ranked very high on the ease of doing business index.

It has a highly stable political environment and an investor-friendly legal and regulatory regime.

Hong Kong also offers one of the most favorable tax regimes globally as there is a tax exemption for profits derived by Hong Kong offshore companies.

Companies resident in Hong Kong are subject to a low corporate tax rate of 16.5% and are payable on only such income that is derived in Hong Kong.

There are no exchange control laws in Hong Kong that facilitate the complete repatriation of profits.

There is also no capital tax, shareholder dividend, or interest tax payable by any company in Hong Kong.

A company incorporated in Hong Kong can be 100% foreign-owned, with even directors not residing in Hong Kong. 

The location of Hong Kong offers a huge advantage — you have easier access to Mainland China markets due to the Closer Economic Partnership Arrangement.

Access to a skilled workforce is also one reason investors find Hong Kong to be committed to maintaining complete secrecy of any foreign investments as Hong Kong occupies the 4th position on the Financial Secrecy Index. 

While there is scope for virtually every industry in Hong Kong, it is highly popular for entrepreneurs in the business of software, fintech, e-commerce, and retail.

Which is the best offshore company jurisdiction for you?

There is no one-size-fits-all approach that you can take while deciding on jurisdiction.

You need to take into account several factors such as the location of your customers, your industry vertical, your home country, taxation avoidance agreements between your home country and the prospective offshore jurisdiction, etc., to figure out the right option for you. 

Ultimately, any destination you choose should allow you to maximize your profits and offer you a favorable environment to do business in.

If the business-friendly environment of Hong Kong is something that attracts you, we will be happy to help you to guide further.  

All you need is a registered agent or a company secretary to get started, and we are here to incorporate a Hong Kong company digitally in just a few days.

So get in touch with us right away to get one step closer to your dream!

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Like individuals, companies are deemed resident in countries where they are established.

However, companies often expand or relocate to other countries and can reside in many countries at the same time. 

A company can be registered in the UK but conduct its business and financial operations in another country.

You can also set up a company overseas to hold your assets or conduct business, even if you are not in the country physically.

This type of company is called an offshore company. 

An offshore company is a company that is incorporated in a country other than the country where its shareholders reside. Offshore companies typically conduct business operations and other transactions in countries other than where they were incorporated.

Simply put, a UK company can have a US offshore company and vice versa.

Setting up offshore companies is a common practice by large corporations and wealthy individuals that can afford to set up companies in different jurisdictions.

But is this why offshore companies are popular?

Offshore companies are not set up merely for convenience.

Keep reading to find out the benefits of offshore companies and why you need to open one.

Is it legal to have an offshore company?

People often assume that offshore companies are illegal as there’s a common misconception that offshore companies are mainly used for illegal activities, tax evasion, and unfair business practices.

However, offshore companies are totally legal.

There are no restrictions or limitations on the locations in which a person can set up a company.

All that is required is total compliance with the legal requirements for registering the company and conducting business in that country.

As such, an offshore company is legal once it is set up and operates within the confines of the law. 

Another way to look at is that an offshore company is technically an onshore company in the jurisdiction in which it is registered.

If it’s legal for foreigners or foreign companies to set up a company in that country, then it’s legal to set up an offshore company in that country. 

Why open an offshore company?

Offshore companies offer major benefits to individuals, companies, and even the countries involved.

Countries enjoy increased revenue from incorporation fees, taxes, and charges.

Individuals can diversify their investment portfolios and protect their existing and future assets.

Companies get to expand their operations, maximize profit, and establish a global presence.

However, setting up an offshore company in any country might be a rigorous and capital-intensive project.

Therefore, you may be wondering if it’s worth your while.

If you’re weighing your options, here are some benefits of opening an offshore company to help you decide.  

Favorable Regulations

As an entrepreneur, the regulatory environment is a key consideration for setting up your business in any country.

Living or conducting business in a country with unfavorable regulations for your business can be tiring.

It can hinder your business growth and reduce your bottom line.

If you’re looking for favorable regulations for your business, setting up an offshore company will be beneficial to you.

Popular destinations for opening offshore companies typically have less stringent regulatory bodies and requirements that can affect your business operations.

You can explore the regulations guiding your business in other countries and pick the country that best suits your needs. 

Lower tax burden

A lower tax burden has to count as the most popular benefit of opening an offshore company.

Countries that attract many offshore companies mostly offer lower tax rates or have tax laws that promote lower tax obligations on companies and individuals.

For instance, some countries deem offshore companies as non-resident companies which absolves them from any tax obligation in the country.

In some other countries, offshore companies pay zero direct and indirect taxes while other countries offer low single or double-digit tax rates. 

Thus, if you’re looking for a legal means to reduce your tax burden, offshore companies are worth considering. 

Access to Better Banking Infrastructure

Popular offshore destinations are known to provide higher bank interest rates and specialized banking services to individuals and companies.

Some offshore destinations are home to Fortune 500 Banks and some of the best digital banks.

Offshore destinations are also often free from political and economic instability which may affect the county’s banking sector. 

Setting up an offshore company may be a great way to access a better banking system that’s more organized than that of one’s country of residence.

You can also enjoy better returns on your savings and investments. 

Investment-friendly policies

Not all countries’ policies encourage foreign investment.

This can be problematic for large corporations seeking to expand to different parts of the world and individuals looking for a legal means to protect their assets.

Anyone can take advantage of the investment-friendly policies in some countries by setting up offshore companies in those countries.

Some of these investment-friendly policies include guaranteed profit repatriation, citizenship to foreign investors, beneficial tax treaties, tax waivers, incentives and reliefs, and the ability to own properties in such countries.

Where to open an offshore company

You can open a company in any country in the world but not all countries are ideal for setting up offshore companies.

Some countries are the go-to destinations when it comes to incorporating offshore companies for several reasons.

These countries offer certain benefits and incentives that make them suitable for establishing offshore companies.

Some of them are considered tax havens by individuals and businesses. 

 If you’re looking to set up an offshore company, here are some of the top countries worth considering.

Hong Kong

Hong Kong is situated in the heart of Asia and is best if you’re looking to establish an offshore company that’s in close proximity to China and the rest of Asia.

You can tap into the manufacturing opportunities in China and import goods at a low cost from Hong Kong.

Hong Kong also has an easy and straightforward incorporation process, an advanced banking system, zero percent income tax for offshore companies, financial secrecy policies, a free market, no foreign exchange controls, and a stellar reputation on the international scene.

Cayman Islands

The Cayman Islands is a British overseas territory that is popular for being a tax-neutral jurisdiction.

The corporate tax rate on the Islands is zero and investors also enjoy low offshore company registration and renewal fees, guaranteed  business privacy, and a stable political environment

The Cayman Islands is is a party to the Multilateral Convention for Mutual Administration in Tax Matters which requires companies resident in the Caymans to disclose tax details with other participating countries.

Thus, it may not be ideal for companies and individuals seeking to hold assets offshore. 

Bahamas

The Bahamas is another popular destination for incorporating offshore companies due to its tax system and confidentiality laws.

Offshore companies incorporated in the Bahamas are exempted from paying corporate taxes on income derived outside the Bahamas.

Offshore companies are also exempted from certain taxes such as stamp duties and estate duties for up to 20 years.

However, offshore companies in the Bahamas are required to pay a fixed annual fee irrespective of profit turnovers or margins. 

Cyprus

Cyprus’ membership in the EU makes it an ideal location if you’re looking to enjoy access to the European market.

If you set up an offshore company in Cyprus, you’ll get an Intra-Community VAT number which allows Cypriot companies to easily conduct businesses with other EU members.

Cyprus has no minimum capital requirement for incorporating companies and offshore companies in Cyprus also enjoy low tax rates.

British Virgin Islands

The British Virgin Islands is another popular destination for offshore companies.

Offshore companies pay zero taxes on income obtained from overseas.

There are also no exchange restrictions between offshore companies and offshore banking customers, and it’s easy for investors to repatriate earned dividends and profit through offshore bank accounts.

How to open an offshore company in Hong Kong

Hong Kong has been ranked as one of the best places to start a business in the world.

It’s easy to set up your company in Hong Kong and the country has the right infrastructure and policies to encourage and support foreign investment. 

If you’ve decided to register an offshore company in Hong Kong, the process is quite simple and straightforward.

First, you’ll need to select and register a name for your offshore company with the Hong Kong Companies Registry. 

Then, you’ll need to prepare the relevant incorporation documents.

These documents include specific application forms, articles of association, identification documents of shareholders and directors as well as parent company registration documents for corporate shareholders and directors.

You’ll also need to appoint a Hong Kong company secretary and pick a registered office address for your offshore company.

Finally, you’ll need to file all these documents with the Companies Registry within the specified time frame and proceeding to set up a business account.

Luckily, you do not have to be in Hong Kong to do this or even register your offshore company in Hong Kong by yourself.

You can register your offshore company in Hong Kong from anywhere in the world with Air Corporate. 

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Hong Kong is known to have one of the most liberal economies in the world.

There are almost unlimited advantages to opening a company in Hong Kong, especially as a foreigner. 

For those located in mainland China, Taiwan, Thailand, and other surrounding countries, registering your company in Hong Kong could be one of the best decisions you make.

Setting up a company from Thailand in Hong Kong is cheap, fast, and easy.

What more could you ask for?

Another benefit of setting up your Thai company in Hong Kong is that you can do it all without even stepping foot outside of the country.

An important note is that you can only open a limited company unless you are living in Hong Kong full time and have a resident permit. 

Even so, a limited company does still require you to rent an office and have a full-time secretary.

Luckily, there is a way around this.

In Hong Kong, you can work with companies who offer the service of providing a secretary and address for about 5-6,000 HKD per year. 

They can keep the cost down since the same address and secretary can be used for many companies.

Additionally, all paperwork and forms can be done online along with payment through credit card or PayPal.

This means you won’t have to worry about the cost of travel to and from Hong Kong as you set up your new entity. 

Registering a Thai Company in Hong Kong: Step-By-Step

Now, let’s take a look at the necessary steps to registering your new company in Hong Kong. 

Step 1

You need to come up with a name for your company and pay the company secretary’s fee.

The licensed company secretary you’re working with will advise if the name you’ve chosen is available in Hong Kong, so have a backup ready in case you need it. 

Step 2

After you have your company name approved, it’s time to produce some documents.

What you need includes:

• A copy of your passport
• A copy of an official document showing your residence (driver’s license for example)
• A filled-out questionnaire with questions about the address, passport number, and name of the director and shareholder. It’s good to note that if you’re opening the company alone you can be the director and single shareholder. 

Step 3

Next, your company secretary will set the company up by e-registration.

The process takes about two hours and when it’s completed, you will be given the company’s certificate of incorporation and the business registration certificate. 

Step 4

Now you have a new company registered in Hong Kong. Easy as that!

The entire process takes about five business days from start to finish.

If you want to register without ever stepping foot inside of Hong Kong, it’s highly recommended to use a company secretary. 

It’s not a requirement, but the forms can be complicated if you’ve never done them before.

You want to avoid making a mistake so that it doesn’t take any more time or money than it should. 

Cost of Registering Your Company

Now that we’ve gone over the steps on setting up a limited company in Hong Kong, let’s talk about the cost associated with it.

The first year is going to be more expensive since you’re having to set it up from scratch. 

Each company incorporation agency, or in Hong Kong they’re called Company Secretaries, charge differently, but on average, it costs around HKD10,000.

Though typically the price will swing wildly between each provider from as little as USD90 to as much as USD5000.

So you’ll need to do some shopping.

Cheap, efficient, and trustworthy more your style? Consider registering with us here at Air Corporate today and get your Thai business registered in Hong Kong in under 48 hours, guaranteed.

You will be paying for the incorporation documents, company registration fee, the Business Registration Certificate which is a government fee, the office and secretary fee, e-registration handling fee (if you don’t enter the country), and for assistance in opening your bank account. 

You can open an account yourself, but if you don’t want to put in all of the efforts and spend the time to do so, you can pay for assistance.

After your first year, the fees associated with a limited company are the Business Registration Certificate, annual return, and the amount you’re paying for a secretary and office. 

After 18 months, your company will have to start filing an income tax return.

If you used a good company secretary to set the company up, they will likely also be able to assist with accounting and filing taxes. 

If you’ve noticed, a licensed company secretary is pretty crucial to have this process run as smoothly as possible.

So what are you waiting for? Register with Air Corporate today for as little as $90 and get a company in Hong Kong in less than 48 hours!

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No one enjoys being taxed as taxes affect income.

However, taxes are unavoidable as many countries rely on revenue from taxes imposed on individuals and corporations.

Certain jurisdictions offer tax reliefs, tax incentives, tax benefits, and reduced tax rates to attract and retain foreign and local investment.

These jurisdictions are popularly referred to as tax havens. 

Tax havens typically offer zero, single-digit, or low double-digit tax rates on corporate and individual income taxes.

Tax havens may also exempt companies and individuals from paying certain taxes. 

If you’re looking for ways to reduce your taxable profit, read on to find out the top tax havens for businesses and individuals. 

Are tax havens legal?

You can reduce your tax burden by relocating to a country with favorable tax rates or setting up a subsidiary company in such jurisdictions.

It is completely legal to invest in any country globally, including tax havens as long as you comply with the legal requirements for investing in that territory.

Tax havens often impose tax requirements on businesses and individuals.

You may still need to comply with any reporting requirements in your country of residence or in other countries where your company operates physically.

Therefore, it is advisable to engage professionals to ensure that you comply fully with all legal and tax requirements. 

Who can benefit from tax havens?

Individuals and corporations can benefit from tax havens.

Fortune 500 companies such as Nike, Goldman Sachs, and Apple use tax havens to reduce their tax liability significantly.

High net-worth individuals such as celebrities, athletes, and business tycoons also set up offshore assets in tax havens.

However, tax havens are not exclusively for the wealthy or multinational companies.

Anyone can benefit from tax havens.

Many small businesses and individuals have realized the opportunities in tax havens and use tax havens to reduce their overall tax burdens

If you or your business can benefit from the tax cut that tax havens provide, here are the top tax havens in the world that are worth considering.  

1. Hong Kong

Strategically located at the heart of Asia, Hong Kong is home to many trading companies.

Hong Kong provides easy access to China, the manufacturing Hub of the world, making it easy for companies to import goods from China to Hong Kong.

Hong Kong is an important financial center with one of the best banking systems in the world.

You can operate a multi-currency bank account in Hong Kong and this has encouraged international trading activities in Hong Kong. 

About 50,000 companies are incorporated in Hong Kong annually because of the ease of incorporating companies in Hong Kong.

You can incorporate a Hong Kong company or relocate your company to Hong Kong digitally without moving a muscle.

Hong Kong is also foreign investment-friendly.

A Hong Kong company can be wholly owned by foreigners.

Also, the company’s directors do not need to be residents of Hong Kong.  

While there are many benefits of doing business in Hong Kong, Hong Kong stands out as a tax haven because of its low corporate tax rate of 16.5%.

Corporate tax is also restricted to income derived from Hong Kong.

Hong Kong offshore companies pay zero income tax. 

Individuals also have a lot to gain from the Hong Kong tax regime.

Income tax on individuals can be as low as 2% and is capped at 17%.

Taxes are not imposed on sales, interests, or dividends in Hong Kong. 

Hong Kong is also a duty-free destination for trading companies.

Hong Kong imposes no import duties on most goods imported into the region.

There are few dutiable goods in Hong Kong such as hydrocarbon oil, tobacco, and alcohol.

Thus, if you’re trading general goods in Hong Kong, you can maximize profit.

While there are countries with lower to zero tax rates, Hong Kong is still a great tax haven for companies and individuals because of its prominence for financial secrecy.

With no ties to the OECD, Hong Kong companies have no obligations to disclose any details of their Hong Kong investments.

Looking for a company secretary to make opening your Hong Kong business a breeze? Register with Air Corporate today and get a registered HK company in 48 hours.

2. Cayman Islands

The Cayman Islands is a British Overseas Territory with more companies than citizens.

Thousands of large corporations and small companies have set up subsidiaries on the Island due to its zero corporate tax rate and zero direct tax rates

The Island is popularly referred to as tax-neutral jurisdiction.

However, there are high duty rates imposed on goods and services.

Import duties range from 22 to 27% for most goods and a higher rate of up to 47% for luxury goods.

The high import taxes have made the island an expensive place to live.

The cost of operating a business on the Island is also on the high side.

Thus, while investors may benefit from the zero tax burden, trading companies may find it difficult to maximize profit.

Also, Cayman Islands has elected to implement the Country-By-Country (CBC) reporting regulations as a fallout of its participation in the Multilateral Convention for Mutual Administration in Tax Matters.

As a result, companies resident in Cayman will be required to disclose tax details to other participating countries. 

3. The Bahamas

The Bahamas is the holiday destination of choice.

It has some of the best views in the world and attracts thousands of tourists annually.

Its proximity to the United States also encourages investment in the Bahamas.

The Bahamas boasts of no corporate or personal income taxes and withholding taxes. 

The Bahamas is also a vibrant financial center, hosting some of the biggest banks in the world like Goldman Sachs and JPMorgan Chase.

However, the country imposes import duties, value-added taxes, and license fees and may not be suitable for import-driven businesses. 

4. Malta

Malta’s proximity to Italy, the largest commercial hub for luxury goods in Europe, makes it a great location for European companies to set up offshore subsidiaries.

Though not a tax-free jurisdiction, the country encourages foreign investment with a low tax rate for foreign companies and several beneficial tax advantages for foreign and local companies.

Malta also promotes non-domiciled residency schemes for high net worth individuals which caps their income tax rate at 15%. 

Malta may not be the ideal tax haven for small businesses and average income earners but it’s definitely considered a tax haven for large corporations and high net worth individuals.

However, due to its proximity to Europe, Malta is caught up with reporting obligations.

The Maltese tax code is also complex and one would need to engage an expert to fully enjoy tax benefits. 

5. British Virgin Islands

The British Virgin Islands hosts over 400,000 companies which are over 1000% of its estimated population.

As a British Overseas Territory, the company attracts investments from British companies. 

Taxes are not payable on offshore corporations, capital gains tax, and profits derived outside the Island.

Thus, it’s an ideal location for setting up a holding company. 

There’s also no exchange control between offshore companies and offshore banking customers.

Investors in offshore companies can easily receive dividends and profit through their offshore bank accounts.

The Island is considered a tax haven because of its zero tax rate on interest, dividends, or corporate income.

However, businesses are liable to pay payroll taxes of 10% or 14% on income exceeding $10,000.

6. Singapore

Singapore is considered one of the tax-friendly jurisdictions in the world.

It boasts of a favorable corporate tax regime.

Many fortune 500 companies have set up subsidiaries in Singapore due to its tax-friendly economy. 

Foreign capital can be held tax-free in Singapore and dividends are also not taxed in Singapore, making it easy for multinational companies and foreign investors to invest and repatriate profit. 

Singapore also provides tax incentives for SMEs in some economic sectors that are deemed beneficial to the country’s economy.

There are also other tax benefits such as tax exemptions for startups capped at 75% exemption on the first $100,000.

7. Luxembourg

Luxembourg is strategically positioned between France, Germany, and Belgium.

Although a small country, Luxembourg attracts lots of investment from foreigners and multinationals, including fortune 500 companies.

Luxembourg established itself as a tax haven as early as the 1960s.

There are beneficial arrangements for companies to seek tax relief in Luxembourg.

Multinationals also establish special purpose vehicle companies in Luxembourg to invest in EU companies because of the favorable tax regime. 

Luxembourg’s location also makes it ideal for companies seeking to explore the European market.

The cost of living and business operations is unfortunately on the high side and may affect your bottom line in the long run.

8. Mauritius

Mauritius is a tax haven for most corporations seeking to extend their reach to Africa.

It is a small island with many offshore companies.

The income tax rate for individuals and companies is capped at  15%. 

Individuals are not liable to pay any capital gains tax in Mauritius. Dividends are taxed at a minimal rate of 3%.

Companies are however required to pay capital gains tax and other duties and levies. 

Mauritius is a tiny island that is somewhat isolated.

It takes a lot of time to move goods across the borders.

Thus, it may not be suitable for trading companies relying on imports or exports for profit. 

What is the best tax haven?

Companies and individuals utilize tax havens to maximize profit.

While several jurisdictions may be considered tax havens as a result of their investment-friendly tax rates and policies, factors such as the cost of business operations, proximity to resources, ease of foreign investment, and import and expect duty rates may affect income expectation in the long run. 

The best tax haven must enable investors to maximize profit.

Therefore, it is advisable to consult professionals on the peculiarities of your investment plans before you pick a tax haven. 

If you’ve decided that Hong Kong is the best tax haven for you, you can register your business with Air Corporate today, and get a fully approved and operational business in 48 hours. 

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