Registration of a company in Hong Kong - this topic is interesting to everyone who has an online business, regardless of location. In this article, we will look at why this jurisdiction is attractive for businessmen and how to register an online business in Hong Kong.
Almost all people who plan or have a business on the Internet begin by choosing the jurisdiction of registration of their future company, on behalf of which they will conduct online business. Given the rapid growth of Asian markets, many modern businessmen choose Hong Kong. It is an international business center along with New York, London and Singapore, the "pearl" of Asia, where West and East meet - a state within a state, a metropolis that is part of China, but has its own government and its own laws.
And Hong Kong is one of the best jurisdictions for registering an online business! Why? Let's consider now.
Registration of a company in Hong Kong is good for almost any type of business, regardless of sales markets. Transparent currency legislation and a loyal tax system have made Hong Kong the world's fourth financial center.
Compliance with laws, absence of corruption, openness of government bodies and freedom of speech - all these factors reduce any risks of doing business to nothing. On the plus side, Hong Kong's legislative and executive powers are in no way dependent on China. Hong Kong's jurisdiction is based on the European system of values, and the state apparatus operates according to British principles. According to the Wall Street Journal and the Heritage Foundation, Hong Kong leads the world in terms of economic openness.
Hong Kong's economy is built on the idea of safe, reliable and convenient banking for business. And this is a great chance to diversify assets outside your country. Multi-currency accounts are opened in Hong Kong banks, so you can receive, store and send your money in several currencies and anywhere, because there is no foreign exchange control.
With a Hong Kong bank account and a company in Hong Kong, you can easily open a PayPal business account. In addition, the cost of servicing in Hong Kong banks is significantly lower than in European banks.
In addition, the name of the company will look solid in the eyes of your customers. And in some industries this is important. Companies with a Hong Kong residence permit are much more trusted in the West than most others in Asia.
Opening a company in Hong Kong is easier and cheaper than you probably think. The cost of registering a company in Hong Kong and additional services can be found here.
The Hong Kong government has done everything to maintain the business status of the metropolis, so new companies are opened here easily and quickly. However, in order to avoid any mistakes or problems in the preparation and submission of documents, as well as to save time and money costs for a personal presence in Hong Kong, it is necessary to contact specialized companies that have Russian-speaking employees in Hong Kong itself. Offshore Pro Group is such a company!
Hong Kong is such a direction of tourism, which is rarely visited on vouchers, although, of course, you can find ready-made tours to Hong Kong. Moreover, in some cases it can come out cheaper than organizing it yourself. But we still advise you to plan your vacation in Hong Kong on your own "from and to": buy tickets and choose seats yourself (after all, it’s for you, not a travel agent, to fly 9 hours), book a comfortable hotel with an excellent location, don’t forget to buy insurance and, of course , do not fall for the gimmick with the general excursion programs from the series "All Hong Kong in 30 minutes." For those who have never been involved in organizing a trip on their own, we decided to prepare an algorithm of actions that will allow you to think through all the important points and not forget anything.
First of all, before planning a holiday in Hong Kong, you need to decide for yourself, do you want to go to this city? Holidays in Hong Kong are not walks in some European capital and not a resort place at all. A Hong Kong vacation is a big city vacation. Probably, despite the banal comparison, a vacation in Hong Kong is somewhat similar to a vacation in New York, with the only difference that the signs are in Chinese. Hong Kong is a metropolis with all its pros and cons. I must admit that we did not immediately fall in love with Hong Kong either, it took several "business trips" to feel its taste and accept it as it is, and needless to say now that it is now one of our favorite cities. But back to what you need to know before you start organizing your own travel to Hong Kong.
Russians who come to Hong Kong for less than 14 days do not need a visa. The same story is with the citizens of Ukraine, but the Belarusians will have to take care of the visa and make it in advance. By the way, for those Russians who plan to stay in Hong Kong for more than two weeks, there is a little life hack: at the end of the trip, plan a visit to Macau, and then you can “zero” your visa and start a new 14-day period. But this should not be abused, there are many cases on the network when people were denied entry because of such permanent visas. You can read more about Hong Kong visas in our article completely devoted to this topic.
The second important issue that should be worked out is the financial support of the trip. Hong Kong is considered a very expensive city for tourists, and not only because there are high prices for hotels, but other costs, compared to other Asian countries, are quite high. It will be especially difficult for those who do not like Chinese cuisine, because you will have to eat either fast food or very expensive. Of course, any spending is very individual and depends on specific people. We can only give a general order of prices:
On average, a family of three (two adults and a child) spends about $ 200-250 per day in Hong Kong, including the hotel.
How long to spend in Hong Kong is an eternal topic for holivars. Someone says that all the most basic can be seen in 1 day, for someone 3 days is enough, and for someone a month is not enough. It all depends on what you are planning and what you expect. If you have a combined trip i.e. if you combine Hong Kong with some other country, for example, with a vacation on the Chinese island of Hainan or in the Philippines, then you need to plan at least 2-3 days. If you do not plan to travel somewhere other than Hong Kong, but have never been to Asia before, then a week should be enough for you to understand whether you want to come here again or not. For those who love China and Southeast Asia, we can say that feel free to plan a trip for at least 2 weeks of vacation, especially if the financial issue is not particularly acute for you.
Well, now that you understand for how long you are going and how much money you need with you, let's move on to the step-by-step instructions for organizing an independent holiday in Hong Kong. The first important step is to buy a ticket to Hong Kong.
Hong Kong is the center of China's tourism, which is visited by a huge number of travelers, which is not surprising, because this ultra-modern and never sleeping city has a lot of interesting places.
Hong Kong is famous for its skyscrapers, bustling business activity and markets. But, despite the actively seething life here, the city also has parks with ancient monasteries - corners of peace and tranquility. Beach holidays are also available in Hong Kong: ideal for those who dream of getting to know Chinese culture, sightseeing and enjoy the achievements of modern science and technology. That is why I love holidays in Hong Kong - for the variety, activity, hospitality and, of course, unlimited possibilities.
Most often, tourists stay in the south of the Kowloon Peninsula, which is known for a large number of hotels with shops, and the largest entertainment center is the Tsim Sha Tsui area, and the main local attractions are located very close to it. As you know, for a long time Hong Kong was a colony of England, which had a rather strong impact on the locals - English is the second official language here after Chinese. So it's safe to say that the language barrier will not be a problem for you in Hong Kong.
At the same time, I advise you to book a hotel before traveling, not hoping that you will find a suitable establishment on the spot - read the reviews before booking rooms, otherwise you risk ending up in a "bedbug" instead of a decent hotel. Unfortunately, I already had such a negative experience when, instead of the hotel shown in the photo, they wanted to settle us in a house with terrible conditions - fortunately, the prepayment was not made, I changed my mind in time and found a better institution via the Internet. The price, by the way, is not an indicator here.
In Hong Kong, an administrative region of China, you can enjoy more than just shopping and dining in great restaurants. If you like nightlife, then in Hong Kong you will find a huge number of bars with nightclubs, discos with karaoke clubs, and pubs. There are really a lot of entertainment in Hong Kong, during our vacation we did not have time to try everything, but I will share what I managed to personally evaluate, what we liked:
I advise you to look into cafes and restaurants in Hong Kong - dinner in "pretentious" establishments with beautiful views cost us $ 80 for two, alcohol is included in the price. You can dine in modest establishments with national food for $ 20 - the quality of the dishes is not up to par, but hearty and varied.
Of course, we must not forget about the sights of Hong Kong - there are many religious sites, monuments, museums and objects of modern art. In my opinion, Hong Kong is just a cocktail of old and new, of architectural monuments and achievements of modern building thought, where colorful skyscrapers successfully coexist with pagodas and monasteries. What do I recommend to see?
There are parks in Hong Kong, where swimming pools with unique gardens are waiting for you, and just a break from the hectic Hong Kong life. What pleases me is that it is easy to get to all objects using a high-speed ferry, tram or bus, the travel time does not exceed half an hour, the transport runs regularly. Indeed, Hong Kong is a tourism center where you will surely feel confident and will leave you with only pleasant impressions.
If you are planning to cooperate with China and want to reduce the taxation of your business, one of the best solutions is to open a company in Hong Kong. An increasing number of businessmen from different CIS countries choose Hong Kong for their business. Why is it profitable to open a company in Hong Kong?
What are the most commonly used Hong Kong companies? This:
A holding in Hong Kong is most suitable for owning a company in China and many other countries, for example, the Philippines, Pakistan and India. Today, everyone continues to actively invest in the Chinese market, but although the Chinese legislation is developed, it is rather complex and strictly regulates foreign investment.
Therefore, many businessmen from all over the world prefer to enter the Chinese market through a company opened in Hong Kong. One of the main advantages is that Hong Kong and China have a signed double taxation treaty, which significantly reduces the tax on dividends received in Hong Kong. In addition, there is no tax on dividends, interest income, royalties, etc. in Hong Kong itself, and you, as the owner of the company, will be able to receive dividends directly without paying tax on them in Hong Kong territory. This is quite a significant advantage in favor of opening a company in Hong Kong.
Also, due to the fact that Hong Kong is a Special Administrative Region of China, the document circulation in it is conducted in two languages: English and Chinese. If you immediately open a company in China, you will face the problem of legalizing documents in Chinese territory, since he did not sign the Hague Convention on Legalization with Apostille. But Hong Kong is a party to this convention and all documents of your company are accepted with Apostille. Between China and Hong Kong, the legalization procedure is quite simple due to the use of two languages in Hong Kong.
Due to its advantageous geographical location, Hong Kong is the business capital of Southeast Asia and, as it is called, the “gateway” to China. According to Tomo Kinoshita, Deputy Head of Asian Economy Research at Nomura Holdings, “All companies looking to be closer to China and the rest of Asia are encouraged to use the jurisdiction of Hong Kong as their base. With its competitive tax rates, Hong Kong is the best choice for setting up international headquarters! ” The number of registered headquarters in Hong Kong is the highest in the Asia Pacific region.
Most often, companies in Hong Kong are opened specifically for trade and intermediary activities. Today, trade relations with China, Pakistan, India and other countries are actively developing, and if you enter the international market and conduct foreign trade activities in the Asia-Pacific region, you need to think about your presence directly in Asia. For such a situation, a company opened in Hong Kong is also perfect, which will be involved in supporting transactions with Chinese partners and concluding transactions with your Russian, Kazakh, Ukrainian and other companies that are your buyers.
By using a company based in Hong Kong, you will benefit from the absence of foreign exchange controls, which will greatly simplify financial transactions with suppliers, especially prepayment issues. Many businessmen from the CIS are well aware of situations when it is necessary to provide a huge amount of documents due to strict restrictions on foreign exchange financial control of transactions. With a company in Hong Kong, you will avoid these restrictions, and if you comply with the principle of territorial taxation, you will generally get rid of the need to pay income tax in Hong Kong. How? The fact is that, due to the territorial principle of taxation in Hong Kong, all profits received by companies outside Hong Kong are exempt from taxation. It turns out that if you do not work directly on the territory of Hong Kong, you will not need to pay income tax in Hong Kong. The saved funds can be spent on business development or for personal purposes - this is at your discretion.
What exactly does the structure of a firm open in Hong Kong look like for trading purposes? First, a trading company in Hong Kong looks for suppliers, concludes agreements with them in China or other countries, negotiates all the terms of the transaction. To avoid taxation, the goods are not imported to Hong Kong, but sent directly to the CIS countries, Europe, etc. Finances go through Hong Kong: a Hong Kong trading company pays for the goods to the supplier, and buyers pay for the goods to the account of the Hong Kong company. Thus, you are engaged in pricing and form your profit, which is accumulated in the company's account in Hong Kong and is not subject to taxation. Having funds on your account, you can always easily make an advance payment, quickly conclude new contracts with other suppliers and develop your business wherever you wish.
According to the laws of Hong Kong, it is possible to carry out business activities in any direction only if there is an office space. The company will be registered only upon providing information about the ownership of the building, premises or if there is a lease agreement. It should be noted that the real estate market in Hong Kong ranks first in the world in terms of value. Therefore, wealthy entrepreneurs from different countries invest their money in Hong Kong in this particular field of activity. This is profitable and considerable.
A brief overview of the types of offices will be the best hint and help a budding businessman to choose the right one for a company in Hong Kong.
The selection of the type of office space for a company in Hong Kong depends on the scope of its activity. The cost of buying or renting depends on the location, size, condition of the premises, equipment, furniture and everything necessary for the life of the company. Buying a ready-made office space is not a cheap option, so let's talk about those that are rented. The lease can be short-term or long-term. In the first case, this is when the contract is concluded for up to 3 years, in the second - more than 3 years.
Under Hong Kong law, only licensed real estate companies are required to provide search and lease services.
Popular areas for office rental in Hong Kong are Central, Wan Chai, Tsim Sha Tsui. In the Central District, offices are rented by banks, consulting, representative and financial companies, in Wan Chai, small and medium-sized companies, in Tsim Sha Tsui - companies that work with mainland China.
There is another type of equipped office in Hong Kong. It's called a coworking center. Here you can buy a pass for a week or 1 day, membership with a monthly payment. All conditions for the work of a particular person or company members are available. Daily use fees range from HK $ 80 to HK $ 350.
The advantage of using offices in business and coworking centers is that you can contact other companies, and that conferences, seminars, meetings and conversations are regularly held there, allowing you to learn about business and life in Hong Kong in details.
Rental rates for a serviced office range from HK $ 8,000 to HK $ 65,000 per month.