Trading and company in Hong Kong
You are considering using a company in Hong Kong for trading activities. Before beginning the process, it is important to verify that the intended activity complies with regulations and to clearly distinguish the company's legal form from its tax treatment.
Hong Kong allows many professional activities, including consulting, investment, commerce, and import-export. Trading is one of the activities considered for this type of structure, subject to compliance with the applicable rules.
What activities are mentioned?
Trading
Trading activities may be conducted through a Hong Kong company, provided that the regulations applicable to the activity and the relevant financial flows are complied with.
Import-export
Hong Kong is also used for international trade and import-export activities, with strong access to the Asian market.
Advice and services
Consulting and various service activities can also be carried out through a company in Hong Kong.
Investment
Investment activities may be considered, subject to any licenses and specific rules that may apply to the project.
Why Hong Kong for a trading business?
A recognized economic environment
Hong Kong is presented as a structured economic environment largely focused on international trade.
A recognized presence
Hong Kong is not presented as a tax haven. This establishment can therefore offer a clearer image than a jurisdiction traditionally associated with tax havens.
Territorial taxation
The tax principle is territorial: taxation depends on the origin and place where profits are generated. An activity carried out outside Hong Kong may therefore be subject to different treatment from a local activity.
An international banking network
Hong Kong has an extensive banking network. However, opening an account remains subject to KYC checks and the bank’s approval.
Prepare the launch of the trading activity
The creation of the company and the opening of its bank account must be carefully prepared. Banks notably examine the credibility of the company, its activity, customers, suppliers, and anticipated transactions.
For a trading business, it may also be necessary to open an account with a broker. The broker should be selected carefully and according to the needs of the business; Merritt is not involved in selecting the trading service provider.
Merritt’s support covers company formation and the associated administrative procedures. The group has been assisting entrepreneurs in Hong Kong since 1998.