Setting up an offshore company is no less than a clever business decision. Apart from greater profits, chances are also good that you’d escape paying high business taxes and other costs. However, establishing one can prove to be a difficult feat, particularly if you’re a novice. The rules that revolve around offshore businesses are quite complicated and may differ from one country to another.
Now if you’re looking forward to owning your own Hong Kong offshore company, there are some important things you need to do so as to guarantee your business success. Although Hong Kong is considered one of the easiest offshore markets to penetrate due to its free economy, you still need to understand and abide with the country’s rules and regulations.
To get you started, here are a few steps you should take:
Get yourself informed. Yes, you need to do your homework. You have to closely evaluate all the terms and conditions, balance the pros and cons, and learn the existing policies in Hong Kong when it comes to offshore companies. Unless you do this, you can’t expect your Hong Kong offshore company to prosper.
Get help from experts. It always pays to ask help from other people who know and understand the market better than you do. If you’re new to the idea of offshore trading, getting an accountant who has sufficient offshore knowledge would be a great idea. You can also ask for pieces of advice from taxing experts who specialize on international tax planning. Although doing business offshore can be quite a tax reliever, it can also get you into a real legal trouble if you fail to abide with the rules. Thus, you should have an expert aid on your side to assist you as you explore your Hong Kong offshore company opportunities.
Get updated. Business trends, especially with regards to offshore trading, are always on the move. Every now and then, some changes take place and you need to keep up with it or might lose everything you have worked hard for. Be sure to subscribe to reliable offshore trading news and regularly check out what’s happening in the offshore sector. Should you have a hard time understanding the trends, you can always ask help from experts.
One of the best things about choosing Hong Kong as your offshore business location is that it offers great freedom, especially when it comes to taxes and business costs. The Hong Kong government is also pretty lenient towards investors and don’t have a lot of restrictions. But even so, you still have to abide with the country’s existing policies to ensure the success of your Hong Kong offshore company.
Hong Kong is clearly a well known as a major worldwide centre and thus it is the dependable choice of international industrialized originalities seeking to advancement as a company in Asia. It is set in the South East Shore of China and have become part of China on one July, 1997. It is a Special administrative Region (SAR) at intervals the People’s Republic of China with its own lawmakers and courts. English and Chinese are the authorized languages and integrated document may be in each language or both. Nowadays, various investors and industrialists are selecting to prearrangement their businesses abroad significantly in entitlements like town centre. The perception behind this movement is to typically advance entrance into a world marketplace and to support from tax friendly authorities.
Offshore business is concerning increasing the opportunities obtainable by countries, whose legislation permits for reassuring compensations like taxation, company structure, confidentiality etc. to be used by non-residents. This implies that a country or Authority, can countenance registering of a corporation and agreement them convinced tax liberties with language for a yearly permit fee. It is generally a permissible obligation that the listed company must not conduct any business or own any properties within the privilege of consolidation. There is not at all “offshore” legislation in Hong Kong. All institutions of an organization are incorporated under the identical legislation, whether they are liability business near or “offshore” that varieties Hong Kong companies analogous to offshore companies, such as those amalgamated within the British Virgin Islands (BVI) is that the tax free standing of such companies, below convinced circumstances. If a Hong Kong company will no business in Hong Kong and originates no income from Hong Kong foundations, then it is not chargeable in Hong Kong. Thus as long as Hong Kong companies will business anywhere else on the earth, it is in consequence of an offshore company. Expressively increased revenues are often accomplished by establishing an organization which can be used as a substitution intermediate for buying, transport, and selling the products. Maximum of the profits is going to be retained by the new commercialism company that may somewhat be furnished within the taxation to consultants at the innovative homemade position of the replacement technique. A Hong Kong company can even start and supervise a Hong Kong workplace as a cost centre and compensation no taxes. As a company outside of Hong Kong might start an Investment Administration Center for its company or group, and pay no tax, so long because it obtains no revenue, solely expenses. Equally one might start a tax permissible manuscript dispensation company in Hong Kong as a cost Center. If organizations will no business in Hong Kong, there is usually no obligation to categorizer economic announcements and no inventory is necessary. Hong Kong corporations are profitable because they are not superficial the legal system is based on the political environment is stable; British common law; as “tax havens”; finance and banking is superb, and there are not any exchange controls. A Hong Kong company may do business every place on the earth and there is no requirement for the Managements and Investors is thickly settled in Hong Kong.
Accounting is an important financial factor in Hong Kong. Accounting crawls into anything that deals in finances either directly or indirectly. Hong Kong accounting bases it foundations on the best policies applicable to the complex structure of finances in Hong Kong along with local interpretations of these policies. Businesses in Hong Kong become more sophisticated with each passing day which not only requires that the numbers be analyzed, but also leadership and expertise be provided to all the sections of the companies to make sure that they are successful in their operations.
The Hong Kong Institute of Certified Public Accountants (HKICPA) is the agency that is credited with the formulation, regulation and promotion of the accountancy profession practices in Hong Kong. The set of accounting standards set by the HKICPA is known as the Hong Kong Accounting Standards or HKAS in short. The main responsibilities of the HKICPA are
The registration and regulation of all professional accountants in Hong Kong
Formulation of financial reporting standards as well as auditing standards in Hong Kong
Ensuring the promotion of the accountancy profession to businesses and the public at large
The HKICPA is the only professional agency given the mandate by law to register and issue certificates to the certified public accountants in Hong Kong. The body has over 28,000 registered members with over 13,000 registered students. The registered members are entitled to be identified as “Certified Public Accountant” or CPA abbreviation in short. A CPA with more than seven years in the Institute may apply for advancement of fellowship. The advancement of fellowship is governed by the Professional Accountants By-law 22. After advancement, the CPA shall be allowed to use the designation “Fellow of the Hong Kong Institute of Certified Accountants” or the abbreviation FCPA in the name.
The HKICPA emerged from Hong Kong Society which was established on the 1 January of 1973. The body is governed under the Professional Accountants Ordinance which spells that the working of the Institute be based entirely on public interest. The Institute’s responsibilities as such encompass a wider range. It’s expected to ensure that the entry into the profession is of high quality as determined through its CPA qualification program. It also has to promulgate the audit and financial reports as well as the ethical standards in Hong Kong. It also has the mandate to regulate and promote efficient and good accounting practices in Hong Kong. All these are to ensure that Hong Kong’s place as an international financial center is well taken care of without compromising public interest.