Corporate world is a big place for people of every stratum of society. The business world has incorporated many new ways digitally to help small scale businesses reach out to the world. You can now easily set up an offshore business in any of the major countries just with the help of your mobile phone. It has become so easy and convenient that every entrepreneur is trying to get into the “big-game”.
What is an off-shore company?
An offshore company is one which does have any special requirements for the company owner or shareholder. An off-shore company does not have to pay any kind of corporate tax in the country they wish to start their own company.
What is an on-shore company?
Just the opposite of an off-shore company, the on-shore companies are the companies that do not allow full foreign ownership of the company. These companies require a ‘local’ representative of the company who handles all the operations of the company.
One of the main benefits of opening an off-shore company is that these companies are often “tax-neutral”, which means that there is either no tax at all or there is a very small amount to be paid.
Other benefits would be that the off-shore company is almost always saved from the political tensions and economic instability of the host country.
Also, If your small business is ready to expand overseas and you are ready for an investment, setting up a company in a jurisdiction that allows you to sell your products in that region effectively, can help you reduce your taxes and operational costs by a huge number, while meeting the legal requirements for you to do so.
Setting up a company in Hong Kong in today’s time is an ideal business move in Asia. The country has been hosting many large businesses since the past decades. They have been able to do so because of their supportive government that allows many influential entrepreneurs to set up their companies. They provide these companies with tax relaxations.
Here are a few examples of taxes exempted by the Hong Kong government:
- No sales tax or VAT
- No withholding tax
- No capital gains tax
- No tax on dividends
- No estate tax
These taxes are usually very high in other countries but in Hong Kong, the government nurtures innovators and creators and thus doesn’t impose such taxes.
Hong Kong is not just a business Haven but also, you get a very diverse talent pool as there are people from many different cultures living in Hong Kong for work purposes. Unlike other Asian countries, Hong Kong has adopted the English language and there is literally no language barrier between the employer and the employee. This makes Hong Kong an ideal business destination for many small and medium companies. If you are looking for hong kong company formation then please inquire us for all the process of the company set up hong kong and their formalities.