How to choose your Offshore Companies in Hong Kong ?
If you intend to use Offshore Companies in Hong Kong for your business purposes, below are the common factors you need to consider:
1) Information Share and Exchange
a) Tax Information Exchange Agreement (TIEA)- Countries have signed up the agreements that they will share the bank information and company information between country So for example, if you come from Anguilla, it is better not to register a company or bank in UK as they have signed up the agreement.
b) Foreign Account Tax Compliance Act (FATCA) - This Act was enacted by US Government that the list of the countries in the FATCA will share the bank information back to US Tax Authority. So if you come from US, it is better not to open bank in the list from FATCA.
c) Double Tax Agreement (DTA) - This is the agreement that countries have signed up so that if client has paid a tax in one country and is now required to pay in another country, so client can have a tax credit and deduce the amount already paid from the one country to another country. Through special arrangements, DTA can minimum the tax paid between two countries through their local tax systems.
d) Information share between European Countries - Clients from EU are better not to open a company or a bank in another member EU countries, as they will automatically exchange the information between themselves.
2) Where to open bank accounts. It is not difficult to open a company, but rather difficult to open bank accounts in different countries, as different countries have their policies to open bank accounts according to their local rules or laws, or even some under political issues.
3) Tax consideration. Different countries have different tax systems, so through special arrangements, the tax of the business can be reduced to zero tax or minimum tax.
4) Assets protection. Some countries are rather safe and stable, through special arrangements, the assets can be transferred to the country which is legal, safe, reliable, and stable.
5) Trust arrangement. Trust arrangements are legal and so enforceable in some countries, but some countries are not. For the arrangement of trust services, clients need to consider which countries accept trust arrangement as legal instruments of business operations.
6) Legal system of the country. It is better to choose an offshore jurisdiction which is fair and reliable in legal system. In case you have a dispute, you can go legal proceedings through such fair and reliable legal systems.
7) Type of passport being held. It is certain that it is a political issue. Some passports are considered as good country, so it is easy to open a company and bank account if holding such passport; however some passports are considered a bad or so called risky country, so it is indeed unwelcome, and if so and if holding such passport, it becomes hard to open a company and bank accounts.
8) Where to expand the business markets ? It is certain the main issue, say if clients want to expand the Asia markets in China, it is certain that they will go China for further business, and will choose China as one of their offshore jurisdictions.