Montpelier can help equip your operation with the right entity and right structure. Our team can offer help to shield your China operation by providing offshore buffers. Montpelier offers offshore incorporation advice in many Offshore jurisdiction including the British Virgin Islands, Hong Kong, Mauritius, Cayman Islands, Curacao and Seychelles.

Offshore Hong Kong Limited Company

The Benefits of an Offshore Hong Kong Limited Company
Generally, Hong Kong companies are being used because of following advantages :

  1. Legal Stability - Adopted a well developed background from the British Legal System, providing a stable social and political environment
  2. Language - English and Chinese as bilingual legal language
  3. Tax Efficient - Tax exempt for income not incurred in Hong Kong ( offshore income )
  4. Flexible Structure - Allow nominee shareholder and director structure - beneficiary owner's identity can be omitted from public company record
  5. Flexible Finance - No restriction in fund transfer to and from most part of the world and enjoy convenience of international banking system

Advantage of using Hong Kong Company to apply for Representative Office ( RO ) in China

  1. Risk - Diversify investment risk away from mother flagship company
  2. Flexibility -  More easy to change ownership of China investment (change shareholding of Hong Kong Company effectively change the shareholding of China business)
  3. Exit - The activity of the RO can be stopped completely by winding up of the Hong Kong Company - this may happen due to change of investment strategy, change of business environment etc.
  4. Time - Close relationship between Hong Kong and China makes application of RO setup easier and quicker.

Common Misunderstandings

Even a non-active company need to file tax return. It is the IRD to assess whether a company need to pay tax or no need to file tax return.

Proper books and records need to be maintained in order to support any financial statements. IRD may ask how your accounting system works and how you keep your records. If it is not properly handled, IRD may be suspicious of the figures in financial statements. In certain situation, penalty or / and estimated assessment will be levied.

The service fee ranges from HK$2,000 for "Nil Business", HK$6,000 for "Small Business", or higher for higher volume of work.