As Asia’s financial center, Hong Kong is a thriving island of expats and entrepreneurs. Many Europeans, Canadians, Australians and vice versa, form a company in the micro state and do so mainly because of tax benefits.
In this post, I want to tell you a bit about how you could form a company in this state and enjoy huge financial and lifestyle benefits, for setting up your company offshore. You may have already have heard of these advantages, but nothing could be more worthwhile than hearing it from an experienced entrepreneur. Read on!
The number one reason individuals and companies form a company in Hong Kong is because of its huge tax benefits. This is very lucrative option, since it is 0% taxable, provided that your business is not derived from Hong Kong businesses and have no employees in Hong Kong. You can run it anywhere in the world, especially if you business is an Internet business.
Easy Set-up (Time)
Who wants to fall in line and go back and forth in government offices? Who wants to deal with bureaucracy? Since time is money, you want things to be as efficient as possible. You can have your company set up within 1-3 business days, and then open your offshore bank account within 7-14 business days. You’d have to fly though, to HK to open a bank account.
Easy Set-up (Money)
Setting up a HK company costs you $1,000, and then maybe another $2,000 – $3,000 for the flight, hotel and bank account opening (that is if you are coming from US/Europe). More than worth the money and time, and guess why?
Well, if your internet business is generating $200k profit a year, you’d lose at least 15% of that money, in case your company/income was taxable.
If your company is set up in a western country, you get hit by sales tax, corporate tax, income tax and God knows what else.
With a HK you pay no tax whatsoever, unless your business is generated within Hong Kong or in case you have an office there and employees working for you locally.
But if your business comes from Canada, Europe, Australia, South America, Europe, other Asian countries.. you pay nothing.
Note that some countries may require you to pay income tax, even if you own an HK company. However, you never have to worry about sales tax, corporate tax or VAT.
But if you’re living in Asia, you’d get a huge tax break and can bank money quite fast. Asia is a great place for building wealth.
So just forming a company in a tax friendly country like Hong Kong, is going to save you thousands of dollars each month, and potentially millions if you got serious money coming in.
Most people don’t know about this opportunity, and that there are better ways to form and run companies than what they are currently doing.
Also, Hong Kong is also a great place to invest in things like precious metals. There’s no capital gain tax. So if you invest $100k in gold today and your investment becomes worth $150k, you got $50k profit that you can take and not pay taxes for.
I think one of the biggest steps that an entrepreneur can make towards becoming rich and becoming rich fast, is to maximize his tax plans. Reducing taxes is one of the most profitable and least expensive ways to put more money in the bank, as long as do it the right way and within the current limits.
So now you just heard about a new way to form a company in a tax friendly (tax heaven) country, but what else is there to do in Hong Kong?
It’s the home of Disneyland. If you come here on a business trip, you may as well bring your family along. I’m sure your kids will thank you for doing so.
If you’re a single male traveler, there should be plenty of opportunities for you to date local women. People here are very intelligent and business oriented.
You can also have good fun here if that’s what you want. I’m not suggesting it, but if you’re single and up for an adventure, you certainly get it here.
There’s something for everyone here. But it’s definitely a very lucrative opportunity to have a HK company, and operate it from anywhere in the world.
Learned something valuable in this post? Have something more to add or share? Feel free to let me know!