Is an offshore company in Hong Kong possible?
Starting a company in Hong Kong can be attractive because of the tax, legal, and banking advantages associated with the territory.
But when looking at the different types of businesses that can be started in Hong Kong, one question often arises: can you set up an offshore company there?
To answer this, it is necessary to distinguish between the company’s status and the territorial basis of Hong Kong’s tax system.
Hong Kong: an offshore jurisdiction?
Hong Kong is not an offshore jurisdiction. Nor is it a tax haven, and the territory is on the OECD whitelist.
The tax rules can be highly advantageous for foreign entrepreneurs. Low or even zero taxation when the business is conducted outside the territory does not, however, mean that a company has offshore status.
The tax system is territorial. Hong Kong has also signed agreements concerning the exchange of tax information. Tax benefits are therefore linked to territorial taxation, not to the company's status.
You therefore cannot create an offshore company in Hong Kong: the structure used is a Private Limited Company. Merritt assists entrepreneurs in setting up companies structured in accordance with the rules applicable in the territory.
What is an alternative to an offshore company?
A limited liability company
The proposed structure is a Private Limited Company, that is, a limited liability company. Its characteristics are similar to those of a French SARL in terms of the principle of limited liability.
A ready-made company
A ready-made company can be used as part of the incorporation process. This solution allows you to start with an already established company and then complete the necessary procedures based on the project.
Assistance during registration
The structure may seem more complex when you first encounter Hong Kong's formalities. Support helps you prepare the registration and necessary procedures without having to navigate the process alone.
A question about setting up a company in Hong Kong?
Would you like to enter the Asian market, particularly the Chinese market, while complying with the rules applicable in Hong Kong? Merritt can assist you with the legal structure, administrative procedures, and various stages of setting up your company.
The group’s support for entrepreneurs in Hong Kong dates back to 1998.