02 December 2020

Can a Foreigner Set Up a Business in Hong Kong?

 It is relatively easy for a foreigner to set up a business in Hong Kong, even if they are the only director and sole shareholder.

As well as being the ideal gateway to doing business in mainland China, company formation in the special administrative region has many advantages.

One of the significant benefits is that Hong Kong is not considered an offshore jurisdiction which means, while you can do business with mainland China, you can also trade with areas such as the EU and USA. 


How to Set Up a Business in Hong Kong

This is a relatively straight forward process, but you will need to work with a company formations service.

·         First, you need to choose a company name and ensure that it is not already being used in Hong Kong.

·         Each member of the company, including shareholders and directors, will need a copy of their passport and a proof of their address.

·         The company formation agents will then prepare the relevant documentation, e.g. a form NNC1 for incorporation, a form IRBR1 for the Business Registration and file it with the Hong Kong Companies Registry.

Assuming all the documentation you present for your business is correctly completed, registration can take place very quickly, and the certificates you need will be issued electronically within a day.

Why Choose International Formations to Set Up Your Business

It’s essential to have the right partner when setting up a business in Hong Kong if you are a foreign entity. At International Formations, we can assist you in all aspects of the paperwork as well as help you set up banking facilities for your business.

If you would like to find out more, contact our expert team today.

27 November 2020

What Are the Benefits of Opening a Company in Hong Kong?

 26 November 2020

There are numerous benefits in creating a company based in Hong Kong, not least its proximity to mainland China and all the opportunities this will deliver.

There are also numerous tax advantages for businesses, and Hong Kong delivers both trade and monetary freedom that outperforms any other jurisdiction in the world.              

5 Benefits of Basing Your Company in Hong Kong

1.       One of the first things that attract global businesses is a beneficial tax system. Hong Kong profits tax is only charged territorially on Hong Kong source income at a rate of 8.25%  for profits up to HK $2million (c. US $258K); and 16.5% on any part of assessable profits over HK $2 million. Income generated from outside Hong Kong is generally not taxable. Hong Kong does not have capital gains tax, dividend tax or VAT.

2.       Hong Kong has rightly been called the freest economy in the world with exemptions on tax and excise duty. If imports need licences, this is very easy to arrange.

3.       Access to mainland China is another reason why so many businesses open a company in Hong Kong. Strong infrastructure, including transport and telecommunications, make this a vital hub for companies that want to build relationships with Chinese markets.

4.       With a population of nearly 7.5 million, companies also get access to a talented, highly qualified and motivated workforce, many of whom have English as their second language.

5.       Hong Kong is a great place to live with flexible work visas, efficient banking services and good quality of life.

 How to Set Up a Business in Hong Kong

It’s important to work with a company formation service that understands the landscape in Hong Kong and can help you navigate the paperwork and stay on the right side of the legal system. Hong Kong is open and welcoming and a company formation is fairly simple with the right documentation and normally takes just a few days.

If you are thinking of setting up a business in the jurisdiction of Hong Kong, contact our expert team at International Formations today.

21 November 2020

Which State is Best for Company Registrations for Non-Residents?

 - 21 November 2020 - 

Compared to other states in the US, Wyoming offers numerous advantages to non-residents that want to set up a company formation. These include no US federal taxes if you are not resident and don’t do business or trade in the country. You will, however, need an EIN (US tax number) and we can arrange this for you.

While it’s a pretty big state, Wyoming has the lowest population and some of the more beneficial company formation rules in the US.

How Easy is it to Set Up a Company in Wyoming?

Because the Wyoming registry does not ask for information to be filed, there is no public disclosure concerning your business. Once instructions have been received, and as long as there are no issues, it should take just a few days to set up your company.

The Benefits of Company Registration in Wyoming

·         For a limited liability company or LLC, there are no state taxes to be paid in Wyoming.

·         The LLC is seen as a separate entity to its owners which means you are not liable for debts and can protect your assets.

·         The reporting and disclosure rules for a Wyoming LLC are minimal, and you do not have to be a US citizen to set one up.

·         An LLC will continue indefinitely, even if passed onto other owners, and will only cease to trade once it is officially dissolved. It’s also, therefore, easy to ensure the transfer of ownership of a business.

·         The filing fees for setting up a Wyoming LLC are the lowest in the US.

·         You can set up banking facilities anywhere in the world, giving your business the flexibility it needs to operate on a global stage. 

Why Use International Formations

While Wyoming may not be your first choice as a place to base your business, it has several advantages. Working with a service such as International Formations will ensure that you get everything you need in one place, including setting up a US banking facility without a personal visit being needed.

If you are considering this option, contact our professional team at International Formations today.

16 November 2020

Can a Non-US Citizen Open a Business Bank Account?

- 16th November 2020 -

To open a traditional business bank account in the US you need to own a company that is registered in one of the 50 US states. In other words, you cannot open an account for a non-US entity. This applies to any company, from a sole proprietorship to a partnership or corporation.

In addition, you will need to visit the USA to open a full US bank account, which may not be convenient and will certainly be expensive.

The good news, however, is that new digital platforms are starting to provide a range of different options, particularly if you are a non-US resident, which act as a workaround for businesses. This means you could effectively open a US business bank account from anywhere in the world with certain platforms.

For example, a new company such as Mercury is focused on providing business banking aimed explicitly at US start-ups.

What does Mercury offer?

Start-ups can struggle to find the right banking service that is responsive to their needs. Mercury is digital platform focused on entrepreneurs and new ventures based in the US. To qualify, you'll need to have EIN and a government issued ID such as driver's licence or passport.

What do we offer?

We offer Wyoming LLC formation package which includes obtaining of EIN and assistance with opening an account with Mercury.

Understanding how to arrange your banking activities if you are thinking of operating in the US can be challenging. Many businesses are moving away from traditional banking to options such as e-wallets that that are easy to open, don't require you to pay a visit in person and can be used anywhere.

If you are searching for banking options, please contact us at International Formations today to find out how we can help.

Can a Foreigner Set Up a Business in Hong Kong?

 It is relatively easy for a foreigner to set up a business in Hong Kong, even if they are the only director and sole shareholder. As well...