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running Ecom Company from HK - what set up to use to pay as little tax as possible?

G

Gfjvchnvhb

New member
Jul 26, 2024
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#1
Hello,

I am trying to set up a somewhat legal structure for a scenario where I live in Hong kong and run an ecommerce company that sells to people in the US.

Everything is outside of HK...except for me.

How would I go about both owning the company and not having to pay the 8/16% tax bracket? I've read that I can build corporate substance else where (hire ppl to be directors or something) - but I am confused into how to accomplish this or who to talk to.

I am open to suggestions into the best structure for living in HK while running an Ecom business.
 
#2
Yes. If you manage the company from Hong Kong, you at subject to tax there.

Do you have a permanent hkid? There are quite some locals which take some off-shore company, especially for crypto. But there is a risk that the IRD goes after you. Traditionally, there were not many tax audits and protection from IRD, but times are changing. Hence, I definitely would not recommend it if you don't have a permanent hkid.

The proper way is as you suggest to incorporate elsewhere and hire directors there. But then, you'll pay taxes there. Unless you choose Guernsey or Isle of Man they won't tax at all. BVI would be another option. But bear in mind that you will need to pay at least 20k USD per year for that. Even if dividends are then tax-free in Hong Kong, you may be better off with the 8.25% corporate tax combined with 500k HKD salary which is taxed moderately.

One advice, you may want to incorporate a US LLC and then register it in Hong Kong. You won't save on taxes but probably won't need the audit.

Additionally, if you are not yet in Hong Kong, you can set up the US LLC now, hire you now and then you'll only pay personal income tax on your salary for the days you actually work from Hong Kong.
 
Last edited:
#3
daniels27 said:
Yes. If you manage the company from Hong Kong, you at subject to tax there.

Do you have a permanent hkid? There are quite some locals which take some off-shore company, especially for crypto. But there is a risk that the IRD goes after you. Traditionally, there were not many tax audits and protection from IRD, but times are changing. Hence, I definitely would not recommend it if you don't have a permanent hkid.

The proper way is as you suggest to incorporate elsewhere and hire directors there. But then, you'll pay taxes there. Unless you choose Guernsey or Isle of Man they won't tax at all. BVI would be another option. But bear in mind that you will need to pay at least 20k USD per year for that. Even if dividends are then tax-free in Hong Kong, you may be better off with the 8.25% corporate tax combined with 500k HKD salary which is taxed moderately.

One advice, you may want to incorporate a US LLC and then register it in Hong Kong. You won't save on taxes but probably won't need the audit.

Additionally, if you are not yet in Hong Kong, you can set up the US LLC now, hire you now and then you'll only pay personal income tax on your salary for the days you actually work from Hong Kong.
Click to expand...
where can I read more on these set ups for 20k? at our level, it makes 100% sense.
 
#6
You could also try reaching out to @James Turner or @Don to see if they can assist you. Both are active members of this forum, and @James Turner has been a long time advertiser here whom we are happy to support.
 
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#7
Gfjvchnvhb said:
where can I read more on these set ups for 20k? at our level, it makes 100% sense.
Click to expand...

I have no idea how much HK checks - but note that you would have to pay a realistic salary to the local director.
You can't just pay $500 a month to someone to run a 7-figure business. They would then (rightly) say it's all a sham arrangement and that you're secretly running things from wherever you're based.
 
#9
Offoffshore said:
Hello. Are you able to elaborate on what bank/EMI do you use as non-resident UK ltd?
Click to expand...
I am not sure what it is about. I recommend him Guernsey, Jersey, Isle of Man or Caribbean. For those, WorldFirst or Amnis would do the job. Who was talking about UK Limited, and even non-resident?
 
#11
Gfjvchnvhb said:
Hello,

I am trying to set up a somewhat legal structure for a scenario where I live in Hong kong and run an ecommerce company that sells to people in the US.

Everything is outside of HK...except for me.

How would I go about both owning the company and not having to pay the 8/16% tax bracket? I've read that I can build corporate substance else where (hire ppl to be directors or something) - but I am confused into how to accomplish this or who to talk to.

I am open to suggestions into the best structure for living in HK while running an Ecom business.
Click to expand...
upgrade your account to mentor group gold and get solution in 1 minute! You can't do it otherwise you have a huge budget to setup a company with substance and plan your private live accordantly!
 
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