Hong Kong Business Formation
A properly-structured Hong Kong International Business Company (IBC) is an excellent tax-efficient corporate vehicle through which international business can be conducted. The following information will help you determine if Hong Kong business formation is the optimum solution for your business.
Advantages of Hong Kong Business Formation
1. Hong Kong business formation is not perceived as a tax avoidance mechanism in an offshore tax haven.
2. If properly structured, Hong Kong business formation is a tax-free way of booking profits sourced outside Hong Kong (visit the Hong Kong Inland Revenue Department website). Avoiding double taxation is also made simple by Hong Kong having signed double taxation avoidance treaties with many trading partners. To see a list of the countries Hong Kong has signed with, click here.
3. Because of its regulated business environment and stable economy, Hong Kong business formation is a secure, long-term structure. The lack of corruption in Hong Kong (see figures here), also facilitates business formation.
4. Because of the positive image of Hong Kong business formation, it is an excellent structure to promote to investors and venture capitalists.
5. Hong Kong business formation is an excellent way to enter China, particularly when supported with a Hong Kong virtual office.
6. To support Hong Kong business formation, Hong Kong offers the best corporate banking facilities in Asia, with banks like HSBC, DBS and Standard Chartered (please refer to this webpage).
7. Because Hong Kong refuses to exchange customer information with the Organisation for Economic Cooperation and Development (OECD), Hong Kong business formation is secure.
8. Hong Kong business formation is quick and easy. According to a World Bank survey, Hong Kong is one of the easiest places in the world to do business (see the survey here).
Disadvantages of Hong Kong Business Formation
1. Following Hong Kong business formation and according to Hong Kong law, annual accounts must be submitted for audit.
2. Hong Kong business formation does not benefit from a good network of double taxation treaties.
Healy Consultants Fees for Hong Kong Business Formation
Hong Kong business formation costs in Year 1 amount to US$2,500 and annual company costs in Year 2 and thereafter amount to US$1,500. These costs include i) annual Government License fees ii) registered business office for 12 months and iii) company secretary fees for 12 months.
Hong Kong Business de-registration costs amount to US$1,450.
Other Information on Hong Kong Business Formation
Refer to the following links to read more about Hong Kong business formation.
- Hong Kong Jurisdiction Summary
- Hong Kong Offshore Banking
- Why set up a Hong Kong Offshore Company
- Frequently Asked Questions about Hong Kong business formation;
- Other Services to support Hong Kong business formation.
Contact us
For more information on Hong Kong business formation, email 
or call +(852) 8331 1911.
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