There are different pros and cons for setting up a hong kong company with setting up a BVI company. As each client’s situation and requirement is different case by case. Client is suggested to seek professional advice before processing.
|Hong Kong Company||BVI Company|
|Taxation||Corporate profts tax rate is 16.5% in average for business operated in hong kong.||Easier to get tax exemption if the business is operated offshore.|
|Bank account opening||Easier to open company bank account even for foreigners||More requirements.documentations and proofs are needed to open company bank account.|
|Pricacy protection||Relatively low level of privacy protection as the registration is open for public search||Easier to achieve anonymity & privacy protection as the registration is not open for public search.|
|Enter into china market||Hong kong company setup could be a better choice if you plan to set up a company or rep office in china later.||Not a very preferred entity as certain restrictions might apply. Also, you could not enjoy CEPA benefits.|
|Discontinuance of business||Required to follow deregistration procedures. Generally the whole process will take around 6-9 months.||Easier process to close down the company.