Hong Kong Offshore Company

Summary: Hong Kong is an exciting and unique offshore/onshore jurisdiction for a number of reasons which this article seeks to clarify

Hong Kong is an exciting and unique offshore/onshore jurisdiction for a number of reasons which this article seeks to clarify.  Firstly it is imperative to state that those with a requirement for a Hong Kong offshore company may find that with careful planning, control and structuring that they can achieve one of the most confidential and tax efficient business entities available in the world today.

Secondly, the advanced and superior status that Hong Kong enjoys as one of the most significant business hubs in the world means that the range, availability and quality of all business support facilities in Hong Kong is unsurpassed and therefore of great potential advantage to those with a Hong Kong offshore company.

Hong Kong is unique – it is not considered to be an offshore tax haven by the Organisation for Economic Co-operation and Development (OECD) meaning that it is considered to be a legitimate business centre; furthermore it manages to remain autonomous from the OECD and is not a member of the Organisation and so it has not signed up to any exchange of information treaties with second nations.  It has just two double taxation agreements in place with Belgium and Thailand and therefore Hong Kong is a stand alone location and a sophisticated and superior international business centre - and for those who incorporate a Hong Kong offshore company carefully, it is a no taxation jurisdiction!

There are two main ways to incorporate a Hong Kong offshore company and they are registering a brand new company or, under the terms of the Companies’ Ordinance, registering an existing foreign business entity in Hong Kong.  There are advantages to each, and which option best suites the individual in question should be discussed with a specialist offshore incorporations company such as The Sovereign Group.

Taxation in Hong Kong currently stands at 17.5% but this taxation is only levied against onshore Hong Kong companies – i.e., those business entities incorporated in Hong Kong which derive their income and business from Hong Kong.  With advice and careful planning those who incorporate in Hong Kong but who derive their income from elsewhere in the world can avoid all forms of Hong Kong based business, company, profit and income taxation.

In terms of the confidentiality afforded a company owner, secretary and shareholders, an offshore company owner can elect to have nominee directors and a company secretary and the majority of sophisticated offshore solution providers offer domiciliary and nominee services for a fee.  Such domiciliary and nominee services also allow a company’s owner to remain hands off when it comes to preparing annual audited accounts and returns which are a requirement in Hong Kong.

Whether a particular individual or business is best represented by an offshore company in Hong Kong is really only something that can be determined on a case by case basis but anyone requiring further specialist advice is invited to and their enquiry will be forwarded to an offshore solutions provider. 

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