5 Reasons NOT to form a Company in Hong Kong

Get personalized advice about tax, asset protection, offshore banking, residency, and citizenships: https://clarity.fm/michaelrosmer
You can visit our websites for more information about us: https://offshorecitizen.net & https://www.offshorecapitalist.com

Today we are going to discuss 5 reasons NOT to form a company in Hong Kong.

⚠️Don't get discouraged! There are plenty of good reasons to open a company in Hong Kong, however today we are discussing five things that you should be aware of. ⚠️

The number one reason you might not want to form a company in this jurisdiction is banking. Banking for Hong Kong companies got quite difficult in the last few years, especially if you have a new company. You can still open an account, but high-quality banks will not be an easy option for you.

The second reason is the annual audited financial statements. This can be a hassle for you, and also increases your costs.

Reason number three is that Hong Kong is certainly not a cheap place to open a company and to operate from. In this day and age, it is very important to have substance, which basically means having an office and local employees that will do real work for you. The real estate market in Hong Kong is among the most expensive in the entire world! Wages are not going to be cheap either. So having substance in this place will definitely not be the best bang for your buck.

The next reason is believe it or not TAXES. Most people believe that Hong Kong is a zero-tax jurisdiction. This is not true! Hong Kong has a territorial tax system, which to put in simple words means that they will tax you if your operations take place in the country. It means that in order to get zero tax you will have to prove that your business operations are taking place outside of Hong Kong. This might take some time.

The last reason why you might not want to open a company in Hong Kong has to do with its Financial infrastructure. You generally don't get VISA cards in Hong Kong, they opt for China Union Pay, which is not as broadly accepted. Also, you will have to deal with Hong Kong Dollars, which means that you will be dealing with currency conversion all the time! Another thing that's very inconvenient is payment processing! Their rates for Hong Kong companies are quite high, and you won't get as many options as you would in the US, for example.

Timeline:
00:00 - Intro
1:54 - Banking
3:20 - Annual audited financial statements
4:25 - High Costs
5:27 - Taxes
7:28 - Financial Infrastructure
Who are we and what do we do?

We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.

We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer

Feel free to join our community!

Don’t forget to subscribe to our channel
https://www.youtube.com/channel/UCZDToCpuHc4kEHDurkQpVPg?sub_confirmation=1

Видео 5 Reasons NOT to form a Company in Hong Kong канала Offshore Citizen