All posts by hkcpa

Macau: One of the Best Places to Start an Offshore Company

Macau is a city located on the southern coast of China at the south of Guangdong province. It is situated just about 60 km west of Hong Kong and 145 km southwest of Guangzhou. It has a humid subtropical climate and relies on the freshwater supply of Xijang River. It has a stable company and a good infrastructure.

Macau’s SAR Offshore Law has been in effect since the first of November 1999. It is the Macau Monetary Authority which regulates the offshore business in the city. On the other hand, it is the Macao Trade and Investment Promotion Institution which regulates and supervises the offshore non-finance business.

Requirements for Operating Offshore Service Business

Any investor who wishes to put up an offshore company in Hong Kong must first obtain an approval from the IPIM. There are some rules which investors must abide by in order to be eligible for operation.

  1. To target only non-Macao residents as customers
  2. To use only non-Macao currency in all activities
  3. To focus on non-Macao markets

It is a must for investors to register an offshore company according to the commercial laws of the Macao SAR. The names of offshore institutions must include the phrases “Macao Offshore Commercial” or “Macao Offshore Auxiliary”.

Tax Incentive for Offshore Companies

In Macau, any offshore institution is exempted from the following taxes:

  • Income tax
  • Industrial tax
  • Stamp duties

Non-Macao residents who are employed by companies as managers and specialized technicians are exempted from salary tax for the first three years of their employment.

Setting Up an Offshore Institution

Offshore institutions can be formed as a branch or subsidiary in Macau. There are differences between the two. A subsidiary is a separate legal entity which has its own memorandum and articles of association. It has to bear its own legal liability. On the other hand, a branch is not a separate legal entity.  It bears its own liability.

The minimum capital required of an offshore institution in Macau is MOP25,000. It has to have at least one director and one shareholder which can be an individual or a corporation. However, if the director is a corporation there is a need to appoint an individual to carry out the duties of a director.

Offshore Services which Can Be Operated in Macau

There are two types of offshore institutions which can be established in Macau and they are offshore auxiliary services and offshore commercial services. Some of the following services which can be offered are:

  • Tests and technical analysis
  • Software consultant
  • Data processing
  • Hardware consultant
  • Research and development activities


Incorporation Options for Hong Kong Offshore Companies

Registering an offshore company in Hong Kong is quite easy and quick compared to other cities in the world. Hong Kong, a city located in the Asian region, is popular for its tax schemes, political stability and positive image in the financial community.

Investors who want to set up Hong Kong offshore companies have two options; they can register a new Hong Kong company or purchase a Hong Kong shelf company.

New Company Registration in Hong Kongy

For investors who want to incorporate a Hong Kong company with a particular name, there is an option for Hong Kong incorporation of a private company. The registration of a company in Hong Kong is easy and only takes about a week.

Getting a Shelf Company in Hong Kong

For some investors the name of the company is not of importance. There are also some investors who can no longer wait for a new company to be incorporated. For these situations, it is best to buy a ready-made Hong Kong shelf company.

What is shelf company? It is an incorporated company in the city to be sold on a later date.  It is a paper company which has been legally registered and does not have any liabilities and assets. If an investor purchases a shelf company, he or she will have the liberty to change the name, increase the capital, appoint personnel and change the business address of the company.

Most businesses which opt for a shelf company are those which need to do business immediately and require registration in the city. Shelf companies which are already years old are beneficial because it will convey to people longevity and reliability.

Incorporation Facts for Hong Kong Offshore Companies

Any name proposed for companies must be approved by the Hong Kong Companies Registry. The company must have at least a single director but can have any number of directors. Directors can be a resident of the city or not and can be of any nationality.

There must be at least one shareholder and only a maximum of 50 is allowed. Shareholders can be companies or natural persons and they can be Hong Kong residents or not and they can be of any nationality. 100% local or foreign shareholding is allowed and the sole director can also act as a shareholder.

Companies are required to appoint a secretary who can be an individual or a corporate resident.  The sole director or shareholder cannot be a secretary.



World economy has been conquering newer frontiers and in such a quest, it is only natural that every country would like to be part of this great success story. Emerging markets across the continents have thrown open new business opportunities and greater employment opportunities. As part of cashing in on this success, every country has liberalised its bureaucracy while dealing with new business set ups. Some great initiatives by different governments across the world to encourage offshore company incorporations include lenient tax structures, better and faster clearance systems for licenses and single window processing structures. A few advantages are listed below:

  • Tax exemption to offshore incorporated organizations.
  • These companies can act as holding companies for bigger global conglomerates.
  • Wonderful platform for international trade.
  • Great investment climate.

With so many countries looking to take advantage of this globalization and new business markets, one country which has been in the fore front has been Hong Kong. Located in the oriental part of the world, this country is a great mix of modernisation as well as the old world. While one part of the country hosts some big names in world of business, another part of this great country is also home to some ancient world. Some advantages that encourage offshore incorporation in Hong Kong can be listed below:

  • Lenient tax structure.
  • Single license fee to be paid annually.
  • Great legal system that is transparent as well as fast and efficient.
  • A free trade window that helps international business.
  • Financial hub and home to many great financial organizations like HSBC (
  • A global platform to launch and integrate organizations.
  • Absence of stringent foreign exchange control, thereby enabling free currency trading.

Not to mention, even Hong Kong has benefited immensely by opening its markets to multi national companies. The real estate in this country is one of the most sought after and with so many organizations having opened shop, the employment opportunities have also risen considerably. Education and skill development programmes have found a new market to show case their portfolio. Though it is considered to be relatively easier to incorporate offshore companies in Hong Kong, there are a still a few regulations that are in place to ensure that all businesses that originate or pass through the country are legal, hassle free and completely clean. Some legal requirements that accompany formation of such companies in this country are the following:

  • One share holder to be legally an adult; i.e more than 18 years of age.
  • One board member/share holder to be a resident of Hong Kong.
  • Registered address to be in Hong Kong.

As an organization specializing in providing services that enable organizations to set up offshore platforms, we help in organizing requirements that help to set these up. These include registered address formulation as well as helping in acquiring of organizations in this country so that the new company has a readymade platform to start business. It is not without reason that this country has been voted as the best international location to start business for ten consecutive years by an international survey platform.

Company formation Hong Kong shouldn’t be much of a hassle. After all, you’ve got a business to attend to. Discuss with a Hong Kong company incorporation authorized agent today.

Some Tips About Macau Company Registry

Opportunities of doing business in Macau are widely available to foreign investors and businessmen, and many people are getting more interested about knowing the procedure of Macau company registry. Among several options, foreign business prefers doing business in Macau by selecting one among some particular options. Incorporating a company in Macau is the most common option, and many businessmen are doing business from Macau accordingly. Some other businesses prefer opening a branch of their existing business, as this is also allowed in Macau for foreign businessmen. Sole proprietorship and going for a representative office are two other common options for doing business in Macau.

Companies with different types and business are permitted to do business in Macau. As per the company incorporation act, businessmen from different industry with different company can start their own business in Macau. Unlimited liability company and individual entrepreneurs are two most common categories among some other options. Mixed liability companies by shares and quotas are also allowed to do business in Macau, as well. Limited liability company by shares, quotas and individual quotas are also permitted to do business in Macau, as well.

The first step of registering a company in Macau is to find a name for the company, which is not yet registered by some other company or business. A brief purpose and type of the business must also be declared while requesting for a company name.  Next, the company must complete the draft and notarize the articles of association within two months, once the certificate is issued. Name and address of the board members and shareholders also needed to be submitted in order to register a company in Macau. A proof of acceptance of the board members must also be submitted, as it comes as part of the Macau company registration act.

Anyone can be appointed as a director, either elected or selected by the board members and this is the common norms of appointing a director according to the company incorporation act in Macau. Obviously, the director must have at least 18 years of age or above. Every company should maintain a business registry and declare some basic information about the company in public. In the case of an unlimited company in Macau, there should be at least two or more directors in that company. In the other hand, limited liability company by quotas, shares and sole owners must have at least one or more directors in order to doing business in Macau.

The Great Things about Registering a BVI Company

Nowadays, BVI companies are increasing in number and it’s the newest business trend in the international arena. BVI basically stands for British Virgin Islands and there are a number of places operating offshore company incorporation. These places can include Samoa, Cayman Islands, Bermuda, Bahamas, Singapore, British, Mauritius, Delaware, Seychelles and many others.

BVI is under the administration of the British Commonwealth. It is ruled under a legal system based on the English Common Law. English Common Law is operating along with local acts.

But, the question is, why BVI Company has become popular trend? The answer is simply lies on its great benefits. And what these benefits? To clear your mind form such question, take time to read the entire article as they are pointed out below:

  1. Low operating costs and tax- BVI companies are enjoying this benefit as they are exempted from stamp duty and local taxes.
  2. Security on assets- a BVI company owner can enjoy security on their assets from being expropriated by the foreign governments. Also, along with this benefit is the ability to transfer, merge or consolidate assets with other BVI company.
  3. Maximum protection on privacy- BVI company directors and other major personality in a company are highly regarded as confidential. Thus, all their information is protected and can’t be disclosed to any others.
  4. Easy operational process- since there are no statutory requirements like holding an annual general meeting as well as auditing of accounts, operating a BVI company be really easy.
  5. Other than those major benefits mentioned above, establishing a BVI company also involves easy and fast incorporations that can only take a day or two, doesn’t need minimum capital requirements, highly competitive fees and great and versatile post-incorporation follow-up services.

Now, if you think of establishing an offshore company with BVI, then you need to know some details like incorporation requirements. And to help on that matter, the requirements involved the following:

  1. A company must have at least one person to stand as company director and shareholder.
  2. A company must have only one local agent and must be a registered resident. He/she would act as a business representative.
  3. A company must have a valid and registered address in BVI.
  4. The documents to be submitted to the Companies Registry include: Certificate of Incorporation, Articles and Memorandum of association.

Establishing a BVI company is definitely easy, fast and straightforward. Plus, with those benefits mentioned, surely you’ll find greater success with it.

A Brief Overview about Setting Up Your Own Samoa Company

Strategically located in the heart of the Pacific, Samoa is fast gaining popularity as a viable location for offshore companies. Over the last twenty years or so, the country has warmly embraced every economic changes as they come. And right now, there is no doubt that Samoa is one of the friendliest places for offshore businesses.

One of the most apparent reasons why Samoa is a strategic offshore company location is that it provides great liberty to investors to do as they wish as long as they’re not going beyond acceptable limits. This way, companies are able to enjoy greater access to more business opportunities for a higher return on investment.

Apart from such, Samoa also takes pride in its business-friendly taxing policies.  Particularly, Samoa lets offshore business companies experience freedom from high income taxes and other charges such as stamp duties and direct/indirect taxes. So when you are a company owner in the country, taxes don’t feel like they are a burden at all.

But that’s not all that there is with Samoa. Aside from friendly taxes and great business liberty, the country is also situated in a strategic location that provides easy access to potential business markets such as Australia, Hawaii, New Zealand, Fiji, American Samoa, and other business-friendly locations.

So with all these perks and more, Samoa is indeed one of the best locations for business companies. But then again, how does one successfully set up a Samoa company?

Well, first things first. Basically, you have to start by understanding the nature of businesses that are within Samoa’s jurisdiction. You also have to understand the existing rules and policies in the country as far as trading relations are concerned. This is very much important if you are to successfully grow your Samoa company.

It also pays to seek help from a business strategist who has expert knowledge about offshore companies in Samoa. Seeking expert help is always best adviced especially if you are quite new to the idea of offshore businesses. This way, you won’t get lost in the process.

So these are just some of the basic things you need to learn and understand about establishing your own Samoa company. Now, more than ever, is the best time to think about investing in the country as it is unarguably at one of its finest economic times. So get up on your toes now and start planning  about your own offshore business in the country.

Beginner’s Guide to Setting Up a Hong Kong Offshore Company

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.


Launching an offshore company in Hong Kong

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.

The Standards of Accounting 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.