Advantages of incorporating a company in Hongkong
What are the advantages of incorporating a company in Hongkong
- Establishment of the company as a “resident” or “exempt” company under the Companies Act 1997
- Manageable financial outlay for establishment and annual administration costs
- Individual combinations with existing EU companies (Malta, UK and Cyprus) possible
- Standard tax rate for all resident and exempt companies 16.5% for income generated domestically
- Complete tax exemption on income generated ex-territorially
- No taxes on dividends and distributions
- No taxes on interest income
- No wealth taxes
- No sales taxes and VAT
- No inheritance or gift tax since 2006
- Only 15% personal income tax with high allowances
- Only 15% taxes on real estate transactions
- Basic accounting and balance sheet obligation
- Obligation to submit an annual return ==> publication of directors, secretaries and shareholders with the registrar with address details
- Hongkong signed up to 40 double taxation agreements (DTAs) so far
- Additionally, there are currently 7 TIEA (Tax Information Exchange Agreement) in force (as of 12/2023)
- Restrictions and admission requirements for the area of finance, insurance & investments
- Business bank accounts from a variety of providers, including debit and credit cards and online banking
Why should I register and manage a limited company in Hongkong through FIRSTADVISOR?
Working with us means, that we will take care of the entire application process including any necessary compliance, until the company is registered and received its tax number. Furthermore, we support clients in regards to banking applications. We know how to approach banks and can handle hurdles, thus having a high success rate. This is important as a company without a bank account doesn’t bring any benefits.
Our experienced and highly qualified tax advisors and lawyers will review your company structure, existing management or mandate contracts. We also offer review of your contractual arrangements at home and abroad. In addition, our tax and accounting department will be pleased to take care of your bookkeeping and tax returns.
Remember – we offer company formations in Hongkong at a fixed price of 1.290,00 € net all-in. Enjoy our fast, reliable and competent approach in your native language (German, English, French, Czech, Slovak, Greek, Russian).
Ideal Tax Framework for Holding Companies and Foundations
Before implementng the new tax regime in 2011, Liechtenstein was troubled by EU legislation and international tax laws, and OECD standards. Thus, Liechtenstein introduced a modern tax framework. The new Liechtenstein tax legislation today fulfills all relevant EFTA/EU standards, EU regulations, the OECD- standards, the FATF and the FSF.
Liechtenstein companies are recognized throughout the European Union as EFTA companies with an extensive Tax Treaty Network. This circumstance is used particularly by holding companies. Liechtenstein nowadays has one of the most favourable Tax Regimes in Central-Europe and competes within the EU with Switzerland, Irland, Malta and Cyprus but at higher cost.
Why not speaking to us to about the advantages of a holding structure or a foundation for multiple purposes (Asset Protection, Succession of a Company or charitable Purposes). You may check out the website of our boutique law firm for further details – TAXEDO LLP.
What you need to consider if relocating to Hongkong
The free movement of EU citizens does not apply to Liechtenstein and it’s extremly difficult to obtain a residency there. However, Liechtenstein organizes each year a tombola, whereas 36 visa application in total will be granted. This takes place each year in Spring and Autumn.
A long-term stay in a country for more than 183 days will usually (and automatically lead) to an unlimited tax liability for your world income. Some countries go even further and already assign this tax liability if you can permanently use your own apartment (this can even be the room in your parents’ house or a regularly visited hotel) which you can access with your own keys – knows as “Schlüsselgewalt” in German speaking countries. This rule establishes or maintains an unlimited Tax liability for your world income. If this subject is of interest, you may find out more on our dedicated website for Taxation.
The often cited and in general used “183-Days-Rule” is not entirely correct. It can be only used to a limited extend as few countries (Germany) deem a personal tax liability if one spends in total more than 183 days within the country in two consecutive years, spanning two tax periods.
One can therefore only advise that people interested in relocating their place of residence not to rely on start-up agencies and other jokers – the pitfalls are simply too great and sound advice is required. A few advisors (specialized lawyers, accountants) study tax law for years, others do a weekend seminar or attend the Google University – where do you feel better off?
It’s amazing what’s on offer on the internet. Believe us – there is no point in having no tax residency/residence anywhere. If in doubt, you never gave up your original tax liability (in your country of birth) or you are automatically subject to tax through your passport.
If you have plans for company formations in Liechtenstein, it make sense to speak about your relocation in detail.
Further information about Hongkong
The free movement of EU citizens does not apply to Liechtenstein and it’s extremly difficult to obtain a residency there. However, Liechtenstein organizes each year a tombola, whereas a total of 36 visa application will be granted. This raffle takes place each year in Spring and Autumn.
A long-term stay in a country for more than 183 days will usually (and automatically lead) to an unlimited tax liability for your world income. Some countries go even further and already assign this tax liability if you can permanently use your own apartment (this can even be the room in your parents’ house or a regularly visited hotel) which you can access with your own keys – knows as “Schlüsselgewalt” in German speaking countries. This rule establishes or maintains an unlimited Tax liability for your world income. If this subject is of interest, you may find out more on our dedicated website for Taxation.
The often cited and in general used “183-Days-Rule” is not entirely correct. It can be only used to a limited extend as few countries (Germany) deem a personal tax liability if one spends in total more than 183 days within the country in two consecutive years, spanning two tax periods.
One can therefore only advise that people interested in relocating their place of residence not to rely on start-up agencies and other jokers – the pitfalls are simply too great and sound advice is required. A few advisors (specialized lawyers, accountants) study tax law for years, others do a weekend seminar or attend the Google University – where do you feel better off?
It’s amazing what’s on offer on the internet. Believe us – there is no point in having no tax residency/residence anywhere. If in doubt, you never gave up your original tax liability (in your country of birth) or you are automatically subject to tax through your passport.
If you have plans for company formations in Liechtenstein, it make sense to speak about your relocation in detail.
To receive a detailed offer or placing an order, please fill out the form down below for Company Formations and we will get back to you shortly!
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