Protecting Your Assets In Hong Kong’s Offshore Banking
As one of the world’s largest financial centers, Hong Kong has a unique position in the international banking world. With ver 70% of the world’s largest banks having a presence in Hong Kong, the country enjoys the most mature regulatory environment in Asia. In terms of transaction volume, it is in the top ten globally and is behind Japan in Asia.
The fast rise in the strength of Hong Kong’s banking industry was primarily due to its low tax regime of approx 15% for both corporations and individuals, and a lack of other taxes in general.
But why do offshore banking in Hong Kong?
First of all, the industry in Hong Kong is highly evolved and formations of IBCs are very common in the country. For example, you can buy a “shelf company” to make the process easier to form a corporation. A shelf company is a company that is already incorporated and thus allows immediate trading after purchasing. The details of the company can always be changed later as you wish.
Moreover, offshore banking in Hong Kong is also attractive due to the highly evolved nature of the industry, having an offshore company here is not considered tax avoidance. At the same time, you enjoy low tax rates. Additionally, there is no requirement for the regulators to disclose details of your trading activities, as would be the case in other countries.
Also, Hong Kong is not considered to be a “black listed” country in terms of tax treatment such as Cayman Islands and the Channel, just to name two. Instead, Hong Kong occupies a unique niche in international banking and thus represents a very attractive place to do offshore banking.
Despite all this, Hong Kong is not 100% free of regulations and there are some requirements on anyone trading in Hong Kong. For example, one still has to commit to KYC (know your client) requirements when creating an IBC. Additonally, other minor information about your trading activity has to be divulged to the general public, i.e. directors and shareholders has to be known and financial statements has to audited and published. Other issues of importance is that the company secretary must be a resident of Hong Kong.
Ultimately, however, if you’re looking for an offshore haven for your assets, Hong Kong represents an ideal place due to low regulation, low tax regime and good banking and trade reputation.
