Hong Kong Company Formation Services offers complete access to a large consumer pool in the southern Chinese region, which includes around 450 million inhabitants. With a sound legal system and a robust business infrastructure, Hong Kong offers entrepreneurs and traders all around the globe a vast commercial and financial arena. The rapid development of this particular administrative area has resulted in more businesses being opened in the former British colony than any other place in the world. Besides offering a high standard of living, it is also a significant financial hub for the whole of China. It accounts for a considerable percentage of global economic growth as well. Consequently, companies in Hong Kong are top-rated throughout the world, even though they do have higher costs compared to those in other parts of the world due to the highly developed economy.
Companies in Hong Kong need to follow some regulations and rules to be licensed and to operatetheHong Kong company formation services legally. There are several government bodies and departments which regulate business firms in Hong Kong and assign them specific tasks according to their nature and size. A company formation service can help entrepreneurs and business people decide which department will best serve their needs.
The benefits of company formation in Hong Kong are many, especially for those who intend to start a business in the area. Companies in Hong Kong enjoy high protection and privilege compared to those in other parts of the country. There is no need to pay income taxes on wages or any other taxable income, which means starting a business in Hong Kong does not require a considerable investment or enormous amounts of funds.
Moreover, starting a business in Hong Kong is a lot easier than starting one anywhere else in the world because there is a particular legal procedure that needs to be followed. First, it is essential to register a company at the Companies Registry under the Companies’ Companies Ordinance.
Starting a company with limited liability is another of the many benefits of company formation in Hong Kong. Unlike most offshore jurisdictions, starting a company in Hong Kong does not require a nominee director or a nominee shareholder. There is only a straightforward method of creating a company in Hong Kong: by applying for a business registration number. Thus, once your application has been approved, you will be able to start your company without facing any difficulties whatsoever.
Highly professional firms offer company formation services in Hong Kong. However, the tax rates levied on them by the government of Hong Kong are much lower than the tax rates applicable to offshore companies. Thus, most of these offshore company formation services offer their services to individuals as well, to help them save on their taxes.
Of course, there are certain limitations of these offshore corporations. The first and most obvious limitation is the limitation of liability. There is no limit on the amount of money that an individual can transfer to his or her own company. It allows the person who owns the company to spend the money, however personally he likes. The same is also true concerning the assets of the corporation. These include shares, property, and the like.
Another limitation of these offshore corporations is the inability of them to create a permanent office in Hong Kong. This office must be registered in the territory of Hong Kong. Thus, if the person wants to start a business in Hong Kong, he or she needs to register it in the jurisdiction where it makes sense to do so. Otherwise, the person risks being involved in a criminal prosecution for illegally incorporating a company in Hong Kong. While some people do incorporate their businesses in Hong Kong under this provision, it is still better to follow the law of the place where the business will be operated.