What Advantages And Disadvantages Do Hongkong Registered Companies Have?

Disadvantages of Hongkong company:

One Hong Kong The company was established in Hongkong and belongs to the Off Shore Company. It is governed by the Hongkong company law. Therefore, all Hongkong companies can not handle the RMB business. Although the national policy now intends to implement RMB settlement pilot, it is specific. policy No introduction. Neither the opening of a local bank account in Hongkong or the opening of a Off Shore Company in mainland China can not receive Renminbi.

2. Hongkong company is not omnipotent. If you are registered with Hongkong company, International Trade More appropriate, but if it is not appropriate to engage in domestic sales, because Hongkong companies can not be invoked.

3. after the establishment of the Hongkong company, annual reports need to be examined annually. This link will generate thousands of yuan annual audit fees, and the cost will increase correspondingly for SOHO.

4. the Hongkong company can not rent office buildings on the mainland. The mainland business department does not recognize your certificate, because your company is not registered in the mainland and has no business rights in the mainland.

Advantages of Hongkong company:

1., the restrictions are few, the names are free to choose; the scope of operation is very limited; the registered capital is few and there is no need for capital verification; the nationality of shareholders is unlimited.

2. international business and financial center, you can freely remit transactions to all countries, and also conduct banking operations through Internet and electronic transaction services. It is very convenient, free access to funds and no foreign exchange control.

3. the most free area of global economy and information is free of quota restrictions and tariffs, and funds, goods and services can flow freely and freely. Publishing and brand in Hongkong are protected by law. There are also many international exhibitions and conferences in different industries every year. These are very conducive to the promotion of brands, and contribute to the development of foreign trade and expand more business opportunities.

4. a company can enjoy permanent continuity and can be run from generation to generation.

5. the sale and purchase of premises under the name of a limited company can prevent the Inland Revenue Department from investigating the sources of personal sale and purchase of buildings.

6. shareholders' private debts will not involve in property and property held by a limited company.

7. the limited liability of a limited company and its business risks will not implicate the private property and property of shareholders.

8. the name of a limited company is guaranteed by law. Therefore, it will not have the same name. It will not be counterfeited, deceived or seriously lost in business dealings.

9. the clean government, the rule of law society, provides fair competition opportunities for individuals and enterprises, so as to ensure the safety and stability of Hongkong's investment environment.

10. tax preferences can be deducted from all expenses, such as entertainment expenses, fares and travel expenses.

11. the salary of directors (proprietors) can be deducted as expenses.

12. the business of limited company, the profit from overseas source is no need to pay profits tax. That is, income derived from Hongkong must be taxed and no income earned outside Hongkong is taxed.

13. the transfer of buildings by a limited company can save a large amount of profits tax, stamp duty and attorney fees.

14. low tax rate and simple tax system, the profit tax rate is 17.5% (net operating expenses, net profit), salaries tax (personal income tax) tax rate is the highest 16%, tax rate is the lowest in the world. Hongkong does not impose capital gains tax, dividend tax, interest tax, sales tax, value-added tax and other hidden "additional" taxes.

15. immigrants overseas, such as the United States and Canada, can avoid double taxation in Hongkong and foreign countries by using limited companies.

16. the total amount of deductible expenses, such as the interest on installments and the depreciation allowance for fixed assets, can be deducted.

17. investing in Chinese business people, using limited companies to sign a Sino foreign joint venture agreement, overseas profits can be exempted from profits tax in Hongkong.

With the advantages and business opportunities brought by 18.CEPA, domestic enterprises can set up factories in Hongkong, use foreign duty-free raw materials and parts imported from abroad, manufacture products in Hongkong, and then enter the mainland market without tariff. The above production process is especially advantageous for products that must be imported from abroad.