Where should offshore companies be registered?
There is no good or bad registration place, or say the quality of the offshore company somewhere is higher
and some taxation is more slack, it depends on the needs of clients. Please communicate with our consultants
to find the best solution for the registration and application of your offshore company.
What is the difference between an offshore company and a local company?
Many people misunderstand that offshore companies are overseas companies or foreign companies,
compared with local companies in China, without paying taxes. Although these are several characteristics
of offshore companies, the definition is wrong. The so-called “offshore” is a matter of right of jurisdiction.
Any company exists under the authorization of a specific company law. A Chinese company is established under
China's Company Law, so an offshore company only refers to that established under the "Offshore
Company Law" enacted in a certain country or a region where the company law can be formulated
Therefore, from this perspective, the difference between offshore companies and Chinese local companies is defined more accurately.
In other words, the particularity of offshore companies is stipulated in the “Offshore Company Law”.
Non-offshore companies (local companies) in a country cannot operate in the same way as offshore companies.
We list a few differences below:
The difference in taxation: Offshore companies generally do not pay any taxes when operating internationally,
while local Chinese companies must pay taxes to the government.
The difference in capital: Offshore companies mostly implement an authorized capital system according to
the British common law, no registered capital verification is required.
The difference in residence: The registered address of an offshore company can be used repeatedly,
while in China, an actual residence must correspond to a company.
We often hear a statement of registering an overseas company. This is a more popular statement for the offshore company
in the early 1990s, there is no strict judicial definition. Therefore, the registration of overseas company mentioned
by many clients is also the registration of offshore company. For more differences, please contact our consultants.
What are the advantages of Hong Kong offshore company?
Registering an offshore company in Hong Kong has been very popular since the late 1990s,
in addition to Hong Kong’s important status as a trading and financial port in Asia,
the proximity of language, culture and region has also given Chinese clients a sense of safety.
These are of course the advantages of Hong Kong offshore company. Hong Kong company has two attributes,
that is, it can operate offshore or onshore. The year of 2008 was one of the years for registering an
offshore company in Hong Kong with the lowest fees, in that year the Hong Kong government exempted
the fee of business registration certificate. Regardless of whether you registered first, there was
a big discount of the annual audit fees of Hong Kong offshore company. With a high international reputation,
Hong Kong company is the most commonly used tool of offshore trading, financial and holding in Asia,
with very good creditworthiness. For more advantages and disadvantages of registering a Hong Kong
offshore company, please consult our consultants.
Welcome to inquire us.
How to set up an offshore company?
It is easy to register an offshore company. As long as you are a legal resident of 18 years old or over,
you can register an offshore company. But this does not mean that you have nothing else to do when you
operate an offshore company. For example, if your want to open an account with a bank for your company,
you may need to provide very detailed business background information, your passport and address proof.
The specific procedures and conditions vary from place to place, please call or email for details.
How long does it take to register an offshore company?
It takes about two working weeks to register an offshore company. Purchasing a ready-made
company only takes one working day. The specific procedures and conditions vary from place to place,
please call or email for details.
How to choose an offshore registration place?
To choose an appropriate offshore registration place, you should ensure that the country you choose meets the following conditions:
Stability: The political and economic stability of the offshore registration place can
ensure the safety of investment funds.
Confidentiality: Understand whether the information of investors is disclosed in the offshore registration place
and whether it can maintain confidentiality.
Absolutely overseas: Make certain that the offshore registration place has no jurisdictional relationship with the
home country, it must be a purely overseas registration place.
Reliable infrastructure: The offshore registration place should be equipped with modern and powerful infrastructure
to ensure investment safety and more convenient asset management.
Preferential tax rate policy: Understand clearly what the preferential tax rate policy in the offshore registration
place for foreign investors is.
The reputation of the registered place: Understand whether the offshore registration place enjoys a good reputation
in the world.
The above six points are only general choice criteria. If you need professional advice or more detailed consulting,
please consult the business representative of Onshorer.
Where is the best jurisdiction to incorporate a company?
Clients should first identify the purpose in registering company and choose the Jurisdiction of Incorporation in accordance with their business needs. We have two typical examples for your consideration. If the company is engaged in General Trading Business, you may consider registering a Hong Kong company and then opening a corporate bank account to run offshore business. There will be benefited from tax exemption in Hong Kong. If the company is a Pure Holding Company, you may consider registering an offshore company to protect the interests of shareholders.Among different offshore jurisdictions, British Virgin Islands (BVI) and Marshall Islands are good options due to their sound legal framework. They have introduced Economic Substance (ES) Laws imposing ES requirements on any legal entity and connecting to the International Tax Compliance. Since the regulations and taxes are essentially different in Jurisdictions of Incorporation, the clients should appoint a licensed and professional Secretarial Company to incorporate and maintain their companies in order to operate the business in compliance with the law of the jurisdictions.
What are the differences between registration of Hong Kong companies, Offshore companies and Mainland companies?
Hong Kong companies must register in Companies Registry (CR) and comply with the various provisions in the , and renew Business Registration Certificate and file Tax Returns to Inland Revenue Department (IRD). Offshore companies mostly register in accordance with International Business Companies Act in different offshore jurisdictions such as BVI.The jurisdictions are generally tax-exempt and provide high level of confidentiality to the organization. Mainland companies are required to comply with Company Law of the People's Republic of China and can register in different cities such as Shanghai and Shenzhen in the Mainland China. Preferential policies and tax concessions for the companies will be obtained from the Local Authorities in the cities.
What are the different points in details for registering the 3 types of companies?
Hong Kong companies should be incorporated by a licensed and professional Secretarial Company and a registered address in Hong Kong is compulsory. Offshore companies must be set up at the registered office by a Registered Agent in the offshore jurisdictions, and the Secretarial Company will act as the Administrator to provide registration and maintenance services of the companies. Mainland companies must register at the relevant Local Authority in the presence of legal representative and Secretarial Company can carry on the registration procedures for the clients.
The formation of a Hong Kong private company must include at least a Director of nature person who has the power to execute corporate actions and a competent Secretary who should be a licensed Secretarial Company. Offshore company Directors can be nature persons or legal entities which can execute corporate actions. The title of Secretary is generally not necessary for Offshore companies. A Mainland company is required to form with a Board of Directors. The chairman of the Board is the legal representative who has the power to execute corporate actions but the other Directors do not have the same power generally.
The company structure of Hong Kong and Mainland companies are disclosed and the public can search for the company information from web portal of the government. The organization of Offshore companies are confidential and the Director and Shareholder information will not exposed to the public.
Hong Kong companies are required to prepare financial statements compulsorily for the business. The financial statements must be audited for the statuary filing of Profits Tax Return. Offshore companies generally need not draft financial statements and tax reports. Mainland companies are also required to prepare financial statements and file tax reports to the relevant Local Authority.
Which are the advantages of registering a company in Hong Kong?
Hong Kong implements Capitalist System and shall protect the right of private ownership of property in accordance with law. The disposal and inheritance for the right of private ownership of property shall also be protected by law.
The formation of a Hong Kong company is favorable to the opening of Hong Kong bank accounts. There shall be free flow of capital and free exchange of currency in Hong Kong.
Hong Kong pursues a free trade policy and does not maintain barriers on trade. In general, no tariff is charged on import or export of goods and hence promote the development of international trading.
Hong Kong companies can run offshore business where the capital can flow into other places through the Hong Kong account but the business of the company are not in Hong Kong. There shall benefit from tax exemption of the company.
How do the clients incorporate the companies in Hong Kong and offshore jurisdictions?
Clients shall appoint a licensed and professional Secretarial Company to incorporate Hong Kong companies and the Secretarial Company need to conduct statutory Due Diligence process and then set up the companies.Clients shall also appoint a professional Secretarial Company to incorporate Offshore companies. The Secretarial Company collaborates with Registered Agents to provide the registered office and register the Offshore companies complied with the law in the offshore jurisdictions.
How long does it take to incorporate Hong Kong companies or Offshore companies?
Hong Kong companies can be incorporated by Express Method or Normal Method. If the incorporation documents are duly signed and Due Diligence is compliant, the companies can be incorporated within 3 business days and around 9 business days by the Express Method and Normal Method respectively.Offshore companies can be incorporated in the form of Shelf Company and the companies will be generally incorporated in 1-2 weeks if all procedures are compliant. The registration timeline will be longer for Tailormade Offshore companies of different company structure.