AmPlus Business Services Limited

 

 

Hong Kong Company Formation

Offshore Bank Account Opening 

HK Harbour

Advantages of Setting-up Offshore Company 


The principal uses and advantages of offshore companies are:

 

Reducing Tax

Offshore company income is exempted from local corporate taxation, provided that the offshore company engages in no local business. 

  

Safeguarding Individual’s Confidentiality

The offshore company records of directors and shareholders are not publicly accessible.  This ensures the confidentiality on the personal details of director and shareholder.

 

International Trading

By interposing offshore companies into international trading transactions, it may be possible to accumulate profits arising out of these transactions.


The offshore company will handle purchases and sales operations, taking advantage of the fact that its profit will not be taxed, or only at a low level, depending on the jurisdiction.

 

Wealth Protection

High net worth individuals save on professional fees by using offshore companies as Personal Holding Companies. 

 

Holding Property or Fixed Asset

Offshore companies are regularly utilized to own property and real estate.  In addition to confidentiality, the benefits and advantages they offer include exemption from certain types of taxes (e.g. inheritance tax).

 

Holding Company Stock, Bond and Cash

Cash assets are held offshore, and may earn deposit interest with no tax.  Offshore companies are very often used for share or foreign exchange transactions.


The main reasons being the anonymous nature of the transaction (the account can be opened under a company name) and little or no tax levied on profits made.

 

Holding Investments in Subsidiary Companies

Capital gains arising from the disposal of particular investments can be made without taxation.

 

In the case of dividend payments, lower withholding taxes can be achieved through the use of a company incorporated in a zero or low tax jurisdiction that has double tax agreements with the contracting state.

 

Utilizing Double Taxation Treaties through Intermediary Holding Companies

Companies wishing to invest in countries where a double tax agreement does not exist between both countries can establish an intermediary company in a jurisdiction where there is a suitable treaty.

 

Holding Patent, Royalty and Copyright

Intellectual property including patents, trademarks and copyrights, can be owned by, or assigned to, an offshore company upon acquisition of the rights.

 

The rights can then be franchised to companies around the world and the resultant income can be accumulated offshore. 

 

Personal Service Companies

Individuals who provide professional services, such as consultants, entertainers, aviators, film executives etc., can realize considerable savings where fees earned are accumulated tax free in Personal Service Companies based offshore. Payments may also be structured to minimize income tax.

 

E-Commerce

Internet traders can use an offshore company to maintain a domain name and to manage internet sites. People whose business is on the internet might choose to incorporate the registered office of your company in an offshore jurisdiction to take advantage of the various benefits offered by these jurisdictions.

 

Simplicity and Reporting

Except for regulated businesses, such as banks or other financial institutions, some jurisdictions make it relatively simple to set up.


Offshore companies are easier to maintain especially with reference to lesser reporting requirements than so-called onshore jurisdictions - the level of information required by the registrar of companies varies from jurisdiction to jurisdiction. 


Offshore company deregistration can be simple and inexpensive.

 


Back