Many of our clients have been setting up Hong Kong Corporation with a Hong Kong Bank account to manage business transactions with China and Asia.

There are several advantages to using a Hong Kong Company, including:

Buying from China: There is a well developed trading structure between the two areas, and the banking transactions between HK and China are a normal part of all HK banking business, and you can transact in whatever currency is required including the Renminbi Yuan. There is less risk presented when dealing with you as a Chinese firm as you are defined to be "local", and you have the option in the future to setup an office in Hong Kong to manage a growing business, and you can use local consultants to assist in contracts, and communication. Another benefit is that annual administration costs are low.

For Worldwide Sales: Your purchasers around the world are sending their money to a Hong Kong Company and a Hong Kong bank, which looks better than using another offshore country. Hong Kong is a jurisdiction where complex international banking is a normal part of business and therefore it is easier to with the Bank and most important it can be done tax-free.

When purchasing from the Chinese and/or Asian market and then selling and exporting to countries around the world, our clients enjoy tax-free benefits on these trading profits. The regular tax on profits in Hong Kong is 16.5%, but if the profits are derived from offshore, they are tax-free.

In almost all of these cases, our clients have no direct employees in Hong Kong, do not have trading business with other Hong Kong companies, and the shipments go from China directly to the country of the final buyer.

The dividends from those Hong Kong profits are made to the shareholders tax free with no withholding taxes in Hong Kong.

In today’s global economy, China is a major factor, but many Exporters do not go to the trouble and expense of setting up an office or warehouse in China but will use agents or a small representative office in Hong Kong to manage the operations. In Hong Kong there are many experienced consultants who can represent the company to the Chinese manufacturers and assist in setting up the contracts and shipping. This is also true for firms that want to expand into the Chinese market. Hong Kong is a good starting point to develop contacts, to manage the marketing and operations, setup joint venture arrangements with China firms, and have lower taxes on profits earned in China.

A Hong Kong company is ideal as the holding company for a Chinese representative office, or owning a warehouse in China or owning any kind of Chinese company.

Overall a Hong Kong company and bank account is the best option for clients who want to do any kind of business in China or Asia and also provide excellent privacy and asset protection for the business.

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