CentreO Blog

First, why choose Hong Kong?

We truly think that Hong Kong is the ideal location for business set-up. It is not only one of the world’s top financial centres, but also a stable and well-respected jurisdiction. Additionally, since Hong Kong companies are legally required to file annual audited accounts, the company will also have more substance and will be able to apply for credit facilities.

Centre o will always advise clients to set up a private limited company. Why?

–        it limits the liability of the shareholders to the assets held by the company

–        the company can conduct ANY type of business

–        the activities of the company and NOT restricted by the company name.

Should you wish to establish a company with your own choice of name, we would like to advise that the full incorporation process will normally 24hours and we will be happy to conduct a name search on the availability of any proposed company name Free of Charge.

Please note that the company registry in Hong Kong is OPEN TO THE PUBLIC. What does it mean? Details of the company Director(s) and Shareholder are accessible to the public.

Note: If you do not want your personal details to appear in the Company Registry, you may wish to discuss your specific requirements with us (sales@centreo.hk)

Hong Kong together with London and New York is acknowledged to be one of the highest respected financial centres in the world. It is one of the world’s busiest cities and its efficiency as a financial centre and as a hub for transacting business in Asia is world-renowned.

Hong Kong is the leading Asian centre for both finance and commerce and ranks as the world’s third largest financial centre after New York and London. There are over 135 licensed banks with over 120 foreign banks having representative offices in Hong Kong and a further 39 licensed deposit taking Finance Companies, all of which play an active role in the financing of international trade and commerce.

Hong Kong is not normally regarded as an offshore country as it is a famous for being a major financial centre, however, it is one of the few countries in the world that tax on a territorial basis. Many countries levy corporate income tax on a different basis and they tax the world-wide profits of a business, which includes profits derived from activities outside of the country. Unlike other Asian countries such as Japan, Korea, Thailand, India and China; Hong Kong does not have any exchange or capital controls which therefore allow funds to flow freely in and out of the territory.

In the previous blog entry was some information on The Immigration Tower,  now down the same footbridge, to the right, is Hong Kong’s Convention and Exhibition Centre. Located on Victoria Harbour, the centre’s goal is to innovatively and creatively host the world’s greatest events.

Hosting several exhibitions a year, the centre provides home to a broad range of expositions, often displayed over a couple of days, anything and everything from licensing products to jewellery showcases. The HKCEC provides 66 000 sqm of exhibition space, 20 000 sqm of multi-function venues and 5 500 sqm of event support space.

 

Apart from controlling the movement of people in and out of Hong Kong, the immigration department is the go to place for your document needs. Such as passports, travel documents, visas, ID cards, nationality matters and registrations of births, deaths and marriage.

 The Immigration Tower, 49 floored, 181 metre high skyscraper, is located in the district of Wan Chai, easily accessible by footbridge just off Jaffe Rd.

The Tax Law in Hong Kong states that profits arising or derived outside Hong Kong are not subject to Hong Kong tax. However, it is the responsibility of the taxpayer to provide sufficient evidence and documentations to satisfy the Tax Department for their offshore claim, a case of “Guilty until proven Innocent”

So how to prove the profits came from outside of Hong Kong?

In order to claim that the Company’s business activities were not carried on in Hong Kong, the Company must provide evidence to the Tax Department to support their offshore claim.

Note: This simple concept can however produce cases which are not clear cut and hence difficult to ascertain the final outcome of the offshore claim.