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Hong Kong is a trap, a fake good offshore jurisdiction

#22
Laurent Timmermans added an information about Hong Kong tax authority:

Even worse now... the tax department made a talk at the HK institute of CPA's (HKICPA) to discourage them to file offshore tax claim due to international tax agreements and automatic exchange of information.

So, it means that if you think about Hong Kong company formation, it means 15,6% corporate tax and no withholding tax. The Tax return is not difficult to fill out but still you need to pay a CPA (Chartered accountant) to do an audit whatever your turnover.
 
#23
dotbloup said:
They also changed the section about audit. I don't know if it is now mandatory for small company
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It is mandatory according to my accountant in Cyprus ;)
 
#24
dotbloup said:
Audit:
Actually, in Europe, there is no audit of companies starting from 1 euros of profit. In Hong Kong, every single companies with at least 1 HK dollar has to be audited. The vast majority of HK company discovers it after one year.
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It's most often not something they mention when you approach them for an offshore company registration. Most often they only mention the setup costs and renewal fee.
 
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#26
Gunter said:
I was considering to incorporate my HYIP business in HK because no one else have done this before.

If I can't incorporate in Seychelles or Belize and if I can't get bank account this is even after these outrageous fees the best option. Do you know if this business hihourly.com is accepted there?
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With the profits you are doing and that I read in one of your other threads I would not waste money on an HK entity. You need something fast and cheap so you can switch once required.
 
#27
Admin said:
With the profits you are doing and that I read in one of your other threads I would not waste money on an HK entity. You need something fast and cheap so you can switch once required.
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I wonder which jurisdiction is fast and cheap so you can switch once required
 
#28
Dave said:
I wonder which jurisdiction is fast and cheap so you can switch once required
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Seychelles and Belize are the fastest, most often it can be done within a few days which is sufficient most of the time if you are into such business.
 
#29
dotbloup said:
Laurent Timmermans added an information about Hong Kong tax authority:

Even worse now... the tax department made a talk at the HK institute of CPA's (HKICPA) to discourage them to file offshore tax claim due to international tax agreements and automatic exchange of information.

So, it means that if you think about Hong Kong company formation, it means 15,6% corporate tax and no withholding tax. The Tax return is not difficult to fill out but still you need to pay a CPA (Chartered accountant) to do an audit whatever your turnover.
Click to expand...

anyone has experience with Laurent Timmermans?
Someone describes his YT channel as an epic fail but from my point of view he has been honest, much better then many chinese agents selling bullshits out there in HK

I need to open an other bank account for my company and since it's been extremely hard to get the 1st one im looking for some good advice.

In case out of HK, where do you suggest me? (hk company but bank account abroad)
 
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#30
perrymason said:
anyone has experience with Laurent Timmermans?
Someone describes his YT channel as an epic fail but from my point of view he has been honest, much better then many chinese agents selling bullshits out there in HK

I need to open an other bank account for my company and since it's been extremely hard to get the 1st one im looking for some good advice.

In case out of HK, where do you suggest me? (hk company but bank account abroad)
Click to expand...

Perry, omg, agents in HK... There are so many scammers. I think about this game they use to catch westerners and hide fees.

With the L. Timmermans company athenasia that can't be worst
Bank account opening - Athenasia

I wanted to say something. Hong Kong... for the future even with 15,6% of corporate tax will always be worth it for Europeans who want to escape crazy EU regulations.
 
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#31
Sorry Dotbluop but I can't understand. The fact that hk is full of scammers, ofc, but I guess every financial place it is.
Beside the scammers, I think Asia is full of unprofessional people that wake up in the morning to believe they could do any job. Result is a market of cheap and bad services/products. That's why it's hard to find a local agent.

About Timermans, I can't see how he would be bad. I cannot judge his service from a youtube channel nor I would call him unless someone i know and trust would introduce me to him or same for other local companies run by westerners. imho it is always the same, how to find a good supplier if you dont want DIY.

just to be correct, we keep posting 15,6% as hk corporate tax, which the real one is 16,5% not that different, but i think it's better not spread mistakes
 
#32
Thank you for the warning OP even if you are banned and can't reply I want to let you know it is a good post :) I was considering a HK company for some time but now I won't.
 
#33
dotbloup said:
I can see that several youtubers share their trip to Hong Kong & thanks to their HD cam they make believe it is a paradise land. However, there are many things that people don't say about Hong Kong.
reference:

  • Every HK company has to undergo an audit at the end of the financial year. An auditor should be hired on top of the accountant
  • The Tax exemption is not automated. Every year, some paperwork should be performed to be allowed to get a 0% corporate tax. This costs a lost of money link / This can cost more than paying taxes or accounting in Cyprus for small businesses.
  • If you have a bank outside of Hong Kong you can't use the payment system to pay hong kong government, you have to go through a local company to pay government fees or taxes and usually they ask for 10% commission
  • Tax investigation is painful in Hong Kong. They ask everything including Invoices, receipts, bank statements but also.... your personal tax statement. They ask lots of due diligence because if you fail, you have to pay 15,6% corporate tax and that's the goal of the Hong Kong Government. They want you to pay this corporate tax.
  • They can seize or freeze your assets in Hong Kong (reference)
  • If something goes wrong you have to fly to Hong Kong.
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awesome share too bad you got banned hope you join the forum anytime soon again :)
 
#38
means that every year there is about 500/1000 hkd to pay to hk government.
on the hk bank account, in case you want avoid the banks fee (it's up to banks, so might be different) you must keep at least 5.000 USD or equivalent amount in other currency.
If under that amount my banks charge me 100/120 HKD month
 
#40
This is a great share. Personally I left my Hong Kong Company last year without to renew it and do any accounting because the agent I had to manage and administrate the Company asked for an installment of 7000 USD to start the accounting, he estimated the total costs for accounting and filing of tax report to be aprox 10- 12,000 USD for the first year! LoL he must have thought I'm total stupid :D
 
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