One of the most popular reasons for setting up a Hong Kong company is that taxes are much lower in this economic zone. It certainly helps in reducing the business costs incurred by most companies. The companies also benefit from various legal exemptions, low start-up costs, and other financial benefits offered by the government in this regard. Thus, it is not challenging to reap these benefits of the company set up in Hong Kong. However, company registration in Hong Kong can be time-consuming and requires a lot of effort from its entrepreneurs.
The most important advantage of a Hong Kong company setup service is that it is comparatively easier to find the necessary legal documents and start-up support from the government. It is possible to see all the required documents from the local office of Companies House or any leading commercial information companies. Besides, one also can contact the banks to check the availability of banking services in the region. The company will also have to apply form to the Companies House, which is processed immediately. Thus, the process of company formation in Hong Kong is relatively easy compared to many other countries.
However, several other advantages make a company set up in Hong Kong a better option than many other countries. First, the Companies House itself is beneficial in ensuring compliance with all the regulations. It has the right to investigate complaints made by its members and take appropriate action. Hence one can be assured of getting the help of this agency if need be. Furthermore, the company secretary is an important figure in the whole procedure as he is responsible for various other activities like company registration and company formation.
Another essential advantage of company registration in Hong Kong compared to other parts of the world is how the document submission is made. It has developed systems that allow documents to be submitted online. Thus, it makes it easier to do the paperwork and get the necessary permits and licenses. The procedures for obtaining the required licenses and permits and doing the required registrations in Hong Kong is also very convenient. With a local agent’s help, one does not have to spend time and money on such tasks.
Companies House also helps in simplifying the documentation process. The process of company registration in Hong Kong is streamlined using its web-based application system. It ensures that all the information provided by the client is transmitted accurately. Moreover, a company formation Hong Kong service will have knowledgeable agents about the local laws and regulations. Thus, the entire procedure for company registration in Hong Kong is made easy.
Another important reason why many prefer to use a company formation in Hong Kong is the availability of financial benefits. The registration process in China costs much more than in Hong Kong company setup service. Besides, a person cannot establish a business in China without the Chinese State Administration’s authorisation. As such, a Hong Kong company secretary makes the whole procedure much more comfortable, particularly from getting things set up quickly and efficiently.
A business bank account in Hong Kong is usually easy to open. The company formation of Hong Kong services makes it possible to open a business bank account in a matter of minutes. However, this is not to say that one can easily open an offshore bank account in a matter of hours. It is because setting up an offshore business bank account in Hong Kong takes time and effort. One needs to go through several documents and procedures and then make the payment for such services.
On top of the reasons, another one is that doing business in Hong Kong also provides many tax benefits. Unlike most countries, one does not have to pay income tax on any asset transferred to the new domicile. Moreover, a person does not have to pay income tax on gifts and inheritances made to China during the assessment year. These are just some of the benefits that people can enjoy doing business in Chinese territory. However, a company formation in Hong Kong requires a lot of carefulness on the entrepreneur’s part. One would need to know the rules and regulations concerning the transfer of funds and the handling of assets to avoid being slapped with criminal charges.