Hong Kong – the offshore location in Asia

Hong Kong – the offshore location in Asia

by Oliver Staab

With more than seven million inhabitants on 1104 square kilometers and a very important financial sector, the economic capital of Hong Kong on the south coast of China is one of the world cities and has become one of the most important trading centers in the world. Hong Kong also is the most important offshore location in Asia.

Hong Kong is not a typical offshore location. Domestically generated income is subject to corporation tax and the Hong Kong Company is required to maintain an accounting obligation and the obligation to present annual financial statements that comply with the tax return. However, due to its high level of discretion, excellent infrastructure and, above all, its geographic and strategic location, Hong Kong is an ideal location for certain growth industries. This applies primarily to import and export, trading, e-commerce, capital management of own funds, acquisition or possession and sale of holdings and e-shop when using PayPal. In particular, Hong Kong may be worth buying from import-export stores that purchase goods from China. As Hong Kong being the most important offshore location in Asia, a start-up there gives you significant strategic advantages.

Hong Kong Private Limited Company (PLC) is by its very nature a limited liability company which can do unlimited business for its own account and enjoys an international reputation. The standard capital amounts to 10,000 Hong Kong Dollars (HKD, pegged to the USD, 1 HKD equals approximately 0.13 CHF), to Shares one HKD, 10,000 Shares. It does not have to be paid in the beginning. Restrictions on the purpose of the company exist only in the case of activities of a bank, insurance, asset management or stock exchange. There is no need for real premises on site. For details, the team of the Business Center Zug advises you comprehensively and competently.

Hong Kong has a simple, stable and transparent tax system with the lowest tax rates in the world. The profit generated by Hong Kong PLC will be subject to a corporation tax rate of up to a maximum of 16.5% provided that revenue has been generated in Hong Kong. Gains earned outside the Hong Kong SAR remain tax-exempt in Hong Kong. If all income is earned outside of Hong Kong, the tax administration may apply for an exemption or offshore exemption claim. The big advantage of the offshore status is, apart from the tax exemption, the elimination of the audit report.

There are no sales or VAT taxes. Also, no taxes are levied on dividends and capital gains. Import duties only apply to spirits, tobacco, gasoline and diesel and motor vehicles. In addition, there is no VAT on this market place, withholding tax and inheritance tax in Hong Kong. There are also no foreign exchange and capital restrictions. For more information, please arrange a consultation in the Business Center Zug!

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