There are many reasons why many entrepreneurs decide to set up shop in this City. Hong Kong offshore company registration provides tax-free opportunities similar to other offshore locations like the British Virgin Islands, Anguilla etc. This tax-free haven is also enjoyed by foreigners who own HK companies that run no business operations on the Island. offshore company
The company registration requirements offered here are relatively loose compared to other locations. This makes it the ideal location for many individuals seeking opportunities to form shell companies. It costs about HK $10,000 to set up a new company.
It can be dangerous to deal with shell or offshore companies in this jurisdiction. They usually lack a physical presence in the city. No problem can be remedied on the island in case a dispute arises from any transaction. When conducting business in China, there can be no protection because you’d be considered to be transacting business with a company in Hong Kong.
Many companies choose to open bank accounts in small foreign banks. This is because banks that are state-run like Bank of China, Agricultural Bank of China and Construction Bank of China are very strict when it comes to opening company accounts. Having a company account in these state-run banks on the mainland makes it safer for you in case you need to pursue your rights on the mainland.
Another advantage of opening a Hong Kong offshore company is the presence of major international banks. These banks have a wide international network of branches. Such major banks are trusted by many business operators. Entrepreneurs can get the necessary assistance required to open accounts with these banks.