Why set up a Hong Kong Offshore Company?

There are many advantages to set up a Hong Kong company. Firstly, a Hong Kong company has an excellent reputation - in short, it will look good to potential investors, venture capitalists, your customers and suppliers, as it will not be perceived as an offshore company or tax haven. A Hong Kong entity is a legitimate corporate vehicle domiciled in a highly regulated, international trading jurisdiction.

Secondly, international profits earned outside Hong Kong and booked in a properly structured non-resident Hong Kong Company will not be subject to local corporation tax;

Thirdly, Hong Kong has very strong client confidentiality laws, and, unlike many tax-haven countries, has refused to exchange information with the OECD. Hong Kong also refused to be a signatory to a recent EU directive obliging financial institutions in certain tax havens to share information on clients. By refusing to sign up to this directive, Hong Kong can be considered a good long term solution.

Opening a corporate bank account anywhere in the world is easier for a Hong Kong company than perhaps for any other jurisdiction.

Also, in terms of trading, Hong Kong banks offer excellent letter of credit (LC) support to a Hong Kong company engaging in international trading.

Finally, a Hong Kong company is also an ideal vehicle to tap the vast potential of China's booming economy.

A properly structured Hong Kong International Business Company (IBC) is an excellent tax efficient corporate vehicle through which international business can be conducted. The following information will help you determine if a Hong Kong IBC is the optimum corporate vehicle for your business.