Are you currently considering the jurisdiction for your startup? If so, you might want to seriously consider setting up a headquarter in Hong Kong, regardless of your business activities.
Here are five reasons Hong Kong should be on top of your list:
1. World class financial center
Hong Kong is well known as one of the world’s best International financial centers. Unlike many other financial centers, Hong Kong’s government support the country’s economic growth by supporting free trade and maintaining low taxation - with little intervention in the economy.
In fact, Hong Kong is ranked #1 on the Index of Economic Freedom for 19 consecutive years since 1995, which means that it’s the heaven for global trading companies, big and small.
2. Stable and reputable offshore jurisdiction
Perhaps not as popular as the offshore jurisdictions in the Caribbean, Hong Kong offers more than the other offshore jurisdictions: Reputation.
Not popularly known as an offshore jurisdiction gives a company that is headquartered in Hong Kong an added boost in term of reputation.
As we all know - or assume - offshore companies are generally having a negative reputation due to the illegal activities that are making use of the tax regulations and secrecy. Setting up your HQ in Hong Kong helps you eliminate some perceptions that your potential clients might have.
3. Tax exemption (with limitations)
The popular jurisdiction of choice among entrepreneurs, setting up your headquarters in Hong Kong offers you what many other offshore jurisdictions offer: Tax breaks.
Indeed, if your Hong Kong-based company’s activities are outside of Hong Kong, you are exempt from all local taxes. You may still, however, doing business locally, but your activities will be taxed accordingly.
This is particularly a beneficial arrangement for online businesses and any other type of location-independent businesses.
More information: The tax system in Hong Kong
4. No minimum capital requirement
To debunk the myth, setting up a company in Hong Kong doesn’t require you to have a certain amount of capital requirement. There is no minimum with regard to your capital, which means that you can establish a Hong Kong HQ regardless of your company sizes.
5. Minimal human resource (legal) requirements
Setting up your HQ doesn’t mean than you need to have the majority of your team members to reside in the Hong Kong office. In fact, you and your team don’t need to stay in Hong Kong if you don’t have the plan to do so.
For the purpose of offshore company formation, the law only requires you to appoint one director and one shareholder (who can be the same person), and you or your team members are not required to be appointed as one: You can appoint nominees for this, instead, to keep the information on real directors and shareholders private.
You appointed nominee director will function as your company director, as well as your intermediate. Please note that this is entirely legal and quite common among big corporations.
Similar to the nominee director, your appointed nominee shareholder will function as the intermediary, which will shield company ownership information from the general public. Again this is also entirely legal.
For more information, go to our Nominee Services info page.
Before you decide to go with Hong Kong as your HQ, please bear in mind that you need to do your due diligence, and make sure that you are making well-informed decision.
You should ask around, and make sure that you consult with specialist or lawyers who are well-versed in offshore laws and regulations.
Contact us for a professional advice. We can help you with this.