There are many benefits to foreigners seeking Hong Kong company registration. These benefits include the following:
Residency not Required: It is not mandatory to have residency in Hong Kong to set up a corporation. However, to qualify for non-residential incorporation (offshore owners not residing in Hong Kong), corporations must hire a secretary and obtain a registered office address in Hong Kong.
Low Incorporation Fees: Regarding the Hong Kong Company formation costs, in addition to the required registered agent /registered office and setup fees, the total cost of incorporation fees to be paid to the government of Hong Kong is 1,730 HKD for initial registration, as of this writing. Businesses wishing to incorporate also must pay 250 HKD to obtain their Business Registration Certificate in order to conduct business in Hong Kong. This does not apply to offshore corporations conducting commerce outside of Hong Kong. Hong Kong Company formation services, such as this one, can get your company established quickly and easily and at a reasonable cost. There are numbers and a form on this page to seek further input.
Low Corporate Tax Rate: The tax rate for Hong Kong corporations operating outside of the jurisdiction is 0%. The tax rate for operating a corporation in Hong Kong is 16.5% of profits. So, as long as the corporation retains its offshore status by not conducting business in Hong Kong, no taxes are levied. Furthermore, offshore corporations are allowed to import items from China and sell them in Europe or the United States and avoid paying taxes as long as the profits come from outside of Hong Kong’s jurisdiction.
However, one thing to remember about taxation in Hong Kong is that the exemptions from corporate taxes do not apply to individuals who are subject to income taxes in their home countries. For instance, if you own a Hong Kong corporation which pays you a salary, your wages will be subject to income taxes in the country in which you reside if it taxes worldwide income, or in some countries, the income of the corporation itself.
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