Hong Kong

Hong Kong Special Administrative Region – shortly Hong Kong – is a special administrative region of the People’s Republic of China and one of the leading financial centers in Asia and the world.

Area – 1104 km2

Benefits of offshore registration in Hong Kong:

  1. Not actually being an offshore, Hong Kong enjoys the confidence of international market and meets all the demands of tax information exchange. But at the same time, it makes it clear that “hunting for tax dodgers” is not allowed.
  2. information about beneficiaries is confidential and is available only to a registration agent and auditor;
  3. Hong Kong offshore offers shipping companies the “Flag of convenience” type of ships registration and allows to avoid the taxation, earning outside the place of vessel registration.
  4. income from the exploitation of ships in international waters is not subject to taxation.

Taxation in Hong Kong is based on the territorial principle: “Made profits in Hong Kong – pay taxes here!” If the source of profit is located outside Hong Kong, you can forget about taxes. At the same time, the region does not have an offshore status.

The standard procedure of opening the firm in Hong Kong has the following feature: tax authorities should assign the company the status of Tax Exemption. You have to prove that in Hong Kong you:

  • do not conclude any agreements;
  • do not have business partners-residents;
  • do not provide services, shipping and movement of goods;
  • do not manage the business, etc.

To confirm the Tax Exemption, Hong Kong offshores are obliged to keep accounting and conduct the annual audit. Moreover, auditors impose strict requirements to all the necessary primary accounting documents (invoices, contracts, orders, etc.) as the auditor bears responsibility (including criminal responsibility) for the audit report that is submitted to tax administration.