Archive for August 2017

Why Opening Your Company in Hong Kong is Good

Hong Kong is a worldwide economic center offering sophisticated and secure economic services. It is home to many local and worldwide banks making this town one of the top banking facilities on earth and the next largest in Asia after only Japan.

In recent decades, while the economy of Mainland China has undergone a process of scrutiny, Hong Kong has reworked all once again, now right into a service-based economic system further to an important gateway to the world’s largest market. Hong Kong is offering these thanks its colonial history and global harbor for the rich combination of cultures that provides it its unique character.

Banks in Hong Kong are steady and secure

Banks in Hong Kong got here because the current international financial system is in better form than many US and European banks. In keeping with the Hong Kong Monetary Authority (HKMA), charged with licensing H.K.’ s banks, the capital adequacy ratio of the banking sector, the liquidity ratio, the categorized mortgage ratio, and different banking asset-quality indicators remain favorable.

In few years, HKMA issued a record suggesting that the local banks might have no issues complying with the most current modifications to worldwide capital adequacy regulations, noting the banks’ capital ratios have been above present standards.

There are three kinds of banking institutions in Hong Kong: licensed banks, limed-license banks, and deposit-taking companies. Only those institutions authorized by the HKMA as licensed banks are permitted to accept deposits and to provide checking and financial savings accounts.

The Licensed Banks should be integrated and must publish their annual audit reports as well as month-to-month returns showing property and liabilities and disclose inner reserves, realized earnings, and internet possessions. The audit reviews are reviewed for compliance with banking laws and violations of the laws is punishable by fines, imprisonment, or both.

Overseas-owned banks can open a company in Hong Kong, the only thing they need to do is to they apply for a license to enter the financial services market. You can find nearly 200 overseas owned industrial banks from 30 countries doing business right here and plenty of local representatives of abroad banks may additionally be working in the city.

Hong Kong’s Favorable Tax Policy

The town does not think about itself as an offshore banking center but rather a low tax jurisdiction that presents offshore account holders favorable tax legal guidelines.

The tax rates under other jurisdictions the taxes are levied only on income earned in the town and never on income eared outside. Further, you may find no capital income taxes, no withholding taxes, no sales taxes and no annual net worth or earnings taxes on firms which keep income.

The tax rate for people‚Äôs salaries is 15% and the business earnings tax is sixteen.5% for corporations and 15% for unincorporated businesses. There’s no tax on dividends, interest or royalties earned.

Other Reasons to Have a Bank in Hong Kong

In addition to the robust and stable banking local and favorable tax laws, other reasons Americans and Europeans think about Hong Kong a nice banking jurisdiction incorporate:

The official language is English

There is a protracted held tradition of protecting account holder’s privacy

Local bank accounts and bank cards can be obtained in numerous currencies and it is possible to store gold in an account as well

H.K. banks provide exceptional interest rates on CD’s