Company Formation and Bank Account Issues

Hong Kong company formation and open bank account open for the business has recently become very popular among people who wish to establish offshore companies. Hong Kong is an international financial centre, home to the Chinese government, which enjoys a high degree of trade with almost all countries. It also plays a crucial role in the trade between China and the rest of Asia. Hence, Hong Kong is also known as the mother of international businesses. Opening a Hong Kong company opens the door to access the vast number of services that the city offers to its corporate clients.

The advantages offered by Hong Kong company formation and bank account and bank account opening are too many to be listed. However, we can mention some essential points to pique the interest of interested people. Firstly, it is a more comfortable option to do business in Hong Kong than in mainland China. Companies need not appoint a local office and maintain a regular office staff.

There is no need to pay the extra cost for a licensed bank officer. Also, there are no restrictions on offshore corporation formation, unlike in China, where nearly all large companies are required to register their business under the mainland bureau. And there are numerous other benefits like exemption from income and wealth taxes, exemption from paying corporate taxes, and tax haven status for dividends paid to foreign investors. Hong Kong also offers a home-based effect to the entrepreneurs. A company can have its shares traded in the stock markets of foreign countries.

But there are certain drawbacks too. One of them is the difficulty in the formation of an offshore business trust. The need for a qualified registered agent is another drawback. It is challenging to decide who will be the chair of the Board of Directors of your new company. It is even more challenging to hire your own offshore formation company instead of engaging a registered agent corporation’s service. Moreover, the formation process takes a longer time compared to that of the mainland.

Suppose you think you do not have the time or the knowledge to conduct business through an offshore company. In that case, you may opt to choose between registering a corporation in Hong Kong and running a business through an agent. Registered agent corporations are easy to establish. You can search the Internet for the most dependable and reliable registered agent corporation you want to incorporate in Hong Kong. Just visit their web sites and request the registration forms. Most of them will be ready to provide the necessary instructions and documents in no time.

Once you get the necessary documents and information, you need to submit it to the concerned authority for processing your corporation’s application. The source for offshore corporations is the Companies Department of the Chinese Government. Another option would be to have the agent representing your company and conduct business through a registered office in Hong Kong. It would be slightly more expensive than having your offshore corporation to conduct its business through an agent. However, if you prefer to have an agent’s services and if you find that you do not have time to deal with them, having your offshore corporation filed and authorized will still be the best choice you have.

In case you have decided to incorporate your company in Hong Kong without incorporating a company account, you will still be required to open a bank account. The decision you make to include your company in Hong Kong by yourself will affect your company’s status as a non-operative organization. It means that your company will not be allowed to operate any business under its name. If you want to open a bank account for your company, you have two options. You can open a personal bank account, or you can open a business bank account.

Whichever option you choose, keep in mind that a business bank account has higher fees than a personal bank account. Opening a business bank account in Hong Kong should take about six months from the date of issue of your company’s register of the corporation. On the same note, you must also open an account with a significant bank within two months of being incorporated if you want to continue working with that bank.

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