More people have decided to set up a Hong Kong company, based on a few reasons even when they physically reside elsewhere in the world.
Running a business in Hong Kong has one major advantage: The economy market is very free for business owners in many different industries when it is compared to most of the places in the world.
Whether your business is going to physically operate in Hong Kong or not, you can register a Hong Kong company with a HK based address. This can all be done without you going to Hong Kong. The incorporation of the company and the submission of documents can all be done through online, with some reliable online platforms.
When you run your business remotely from offshore i.e. not from Hong Kong, you can get the local agency who can provide you with a company secretary.
One of the pros of having a Hong Kong company instead of one that is based in the People’s Republic of China is that from the political point of view, the Hong Kong registered company runs on a totally different legal system.
Regarding tax, when the registered company’s director or directors aren’t living locally in Hong Kong, you can even apply for the off-shore company status. This lets you only pay taxes based on your company’s profit that has been earned in Hong Kong.
When your company has the status of an off-shore company, you have an economical advantage. An example is when you export watches from China or a supplier based in China, and have the watches re-sold to the Middle East, then your company will not be liable to pay taxes in Hong Kong.
One thing to remember is that only opening a company is sufficient. At later stages, you’ll be required to get accounting and auditing as the administration work done by the agency or online platform who / where you’ve registered your company with in the first place.
A legitimate business would have cash flow going out and coming in, and when that happens, a company bank account would be used to transfer money. Before opening the bank account, your company must have been first successfully registered. One of the requirements for opening the bank account is to submit with the business registration certificate.