Is Hong Kong Business Registry Necessary For Doing Business In China?

If you do opt to open a Hong Kong company first, you’ll still have to open a business in the Mainland, like a WFOE in China, afterward to be able to have a legal existence there. Now, what exactly are the huge benefits to foreign companies of having a Hong Kong organization and then and owning a Chinese business with it?

The benefits are many, and we are able to safely determine that it’s really worth option for company’s registry hk, but what exactly are they?

Tax Benefits When Working Overseas

It might be that the tax treaty in the middle of your industry’s home country and Hk is even more favorable compared to the Chinese business. Any benefits could also rely on the kind of your projects in China, as some industries in areas ( like QianHai in Shenzhen receive extremely good taxes breaks) In such cases, funneling money from your China business back again to your home through Hong Kong might mean lots of huge savings. The only sure method to learn more about this is to get tax guidance from Mainland or Hong Kong tax expert’s expert.

Nice Tax Systems

Let’s assume that you’ll be working and could have staff located in or employed in Hong Kong, the easy tax system will be an advantage for certain. Accounting and tax in Mainland China are bureaucratic, opaque, and extremely difficult for foreign people to understand. However in Hong Kong taxes and accounting is nearly similar to that of all Western countries.   It has low personal as well as corporate tax burdens, and in case you are investing there, the lack of dividend as well a  turnover taxes will be attractive.

For foreign businesses importing to China having less custom and import tax is a boon, which also may help companies who later open on the Mainland, as products and equipment could be imported inexpensively into Hk, and brought over the boundary to reduce China transfer taxes.

Simple Hong Kong Company Registry

Just as Hong Kong tax is simple, so is opening a Hong Kong company. While the China organization sign up process is very long, difficult, and hard to understand, the process of the companies registry hk is fast and simple to open with specialist help.

A Hong Kong Company Could Make China Business Sign Up Simpler

Since Hong Kong is part of China, despite being truly a special region which has a number of self-governance, Hong Kong businesses have a simpler time from here starting a Mainland China business when it comes to paperwork needed and the hoops that trading companies which subsequently own a WFOE must jump through. This may save time, and it means fewer issues when starting a business in China.

No Limitation On Foreign Currency Transfer In Or Out Of Hk

In contrast to China, it’s simple and inexpensive to transfer money overseas from a Hong Kong business accounts or send cash to Hong Kong. The procedure in China is a lot more complicated as tighter control rules on forex transfer.

CEPA

CEPA is a contract which is intended to improve trade between Hk and China. Hong Kong items which abide by CEPA guidelines are allowed to be imported into China free from any tariffs.  So as you can see, there are numerous potential benefits for international businesses that opt to open a Hong Kong business before going to China.

Conclusion

With the proper assistance, a Hk organization could possibly be up-and-running in a matter of fourteen days, which means that it takes a few minutes before you utilize it as a great investment vehicle for owning your China firm which also has much less bureaucratic procedures; therefore it’s a competent part of the process.

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