Setting Up a Company in Hong Kong
Important information about using a company in Hong Kong
It is important to remind our customers that Hong Kong benefits from a reduced profits tax (max 16.5%) or even zero profits tax (if the company’s activities are carried out outside Hong Kong). Some questions may be asked on the economic nature or exact location of the company’s activities if the company has neither a location nor personnel physically located in Hong Kong.
OECD member countries no longer want to see foreign tax practices that harm their economies and various measures (Common Reporting Standard – CRS , Base Erosion and Profit Shifting – BEPS ) have been implemented to combat aggressive tax planning.
We therefore advise our clients to create a real company with physical activity in Hong Kong. It would be risky to create an offshore company that is non-resident. Similarly, all opaque schemes are at best useless, at worst fraudulent.
We do not offer any nominee service or complex planning with trust, multiple floors of companies, etc. The safest solutions seem to us to be the simplest structures that are the most transparent.
We would advise you to always have a tax expert endorse your country of residence to ensure your structure complies with the tax legislation of your country.
We can answer your tax questions concerning Hong Kong but we cannot advise on the foreign taxation of a non-resident. We would always recommend for a physical presence in Hong Kong and to comply with tax regulations both in Hong Kong and in the home country of the company’s partners.