Hong Kong company formation and open bank account open for your business have become quite popular lately, especially for those wishing to establish offshore corporations. Hong Kong is already part of the People’s Republic of China, yet still possesses a different kind of legal system, after all, following the basic rules of English law. The principle is essentially the same in both countries: You have the freedom to run your business as you wish (or at least within the confines of the country where you live) if it is registered under the law of your choice. However, there are differences in the types of registration and the taxation of that business income.
To enjoy Hong Kong company formation and bank account benefits, you will need to open an offshore corporation and choose the correct registration type. Most companies will choose the “company formation” option, where the company makes no direct appearances in the court of law. It is known as “personal registration”. It is not a requirement to have your business listed in the Companies Registry in Hong Kong, as it is not required to publish any information about your company on the internet. If you wish, you can opt to publish the names and addresses of your company directors and shareholders, as well as its statutes and regulations in the register of offshore corporations.
However, personal registration does not provide any benefits to your company in Hong Kong. Neither can it be considered the most efficient way of incorporating your company in the jurisdiction. After all, the formation process in Hong Kong itself takes months and costs several hundred dollars. Additionally, the procedure is not free, as the Registration Office charges a registration fee every year. Thus, the benefits of offshore corporations are much more attractive.
A registered agent corporation is a much better option for incorporation in Hong Kong. A registered agent corporation serves all the benefits of a regular corporation but is entirely under the Hong Kong authorities’ jurisdiction. Your company is not required to publish its name in the public domain, nor is it required to appoint a director and officers. You still need a Registered Agent to conduct the trade and receive any tax benefits. Moreover, you do not have to get a separate bank account for your company, nor do you have to appoint one for yourself.
The benefits of having a registered agent are many. With a hide, you can conduct business more professionally. By giving your business this added layer of professionalism, you will be a reputable company by your customers, and your reputation in the local community will increase significantly. Besides, when you are ready to expand your business in Hong Kong, you will not have to pay extra money for an offshore corporate bank account because all your business accounts will be under your name.
Registration of your corporation as an entity in Hong Kong will also help protect your assets in the event of an overseas transfer. Most offshore corporations do not follow the same filing requirements as domestic corporations. Transfer of assets to an Offshore entity is only possible when you meet the following criteria: you have partners in the Hong Kong corporation, or most of the directors are Hong Kong residents. Transfer of funds is not possible unless there is a power of attorney for the transfer. The problems associated with incorporating a foreign company can be eliminated with your company’s registration as an offshore corporation. It means that you will not have to use the services of a lawyer or a financial advisor to register your corporation.
Another benefit of company formation in Hong Kong is that you can open a separate business account for your company. An offshore bank account allows you to operate your business free from the constraints of having to maintain a local bank account. You will also be able to provide employees, agents, and shareholders with information about your company through fax, pager, or email.