I’m sharing my experience and what brought me to incorporate in Hong Kong.
If you’re looking for ways to save on your taxes, always consult your tax preparer or a CPA because everything in this article is from the eyes of a total newbie.
For starters, I’m doing this based on a recommendation from a friend. We had a long conversation about this, with parts of it already long-forgotten because the beers started to kick in. But as a man of my word, and because who doesn’t wanna keep more money in their pocket, I’m following through.
Anyway here goes:
If you search for “incorporate in Hong Kong” you’ll find articles that teach the benefits of incorporating overseas. Here’s one:
“The regulations around business accounting and auditing are also more lenient—where countries like the UK or Germany may be very strict about what can be classed/taxable as a business expense, you will find that Hong Kong allows for much more to be included, reducing any tax the company may owe, and possibly also reducing the amount of personal income you need to take from the business.”
There are a buncha agencies that’ll do all the incorporation paperwork for you, the one I used is here:
UPDATE: I took the link down because of the crappy support I got after I incorporated.
I chose this company because my assistant found several options and out of all of them, this company answered my questions as soon as I’d send them. I worked with a dedicated rep through Skype and she worked super quickly.
They’re not the cheapest option available, but if your time is valuable then you’ll spend money to save it. They did everything for me with minimal input and my corporate dockett was ready after only 2 days.
Again, the company I worked with was great at the beginning. But afterwards, it felt like they disappeared. At least until it was time to renew…
You never actually have to fly to Hong Kong to incorporate there.
The part you have to actually travel there for is to open up your company bank accounts.
I chose HSBC because it’s internationally recognized. [COMPANY] scheduled
my appointment with HSBC for me and all I needed to do was go there for the interview.
It was just a few questions about the business.
I left needing to submit 2 additional forms which I’ll email to my case manager, then 3-4 weeks after she receives them I will learn via text if my accounts and credit lines are approved or declined.
If declined, the buck doesn’t stop there, I’ll simply try again with another bank.
By the way, did I mention this is all new to me?
UPDATE: At the time of this writing I submitted all my paperwork but in the end, HSBC declined to open my bank account. I asked my buddy who encouraged me to incorporate in Hong Kong and he said a few of this other friends got denied too. Apparently, there’s been a wave of people incorporating in Hong Kong and taking advantage of the rules and the country is cutting down. It actually doesn’t matter to me, it really never did in the beginning.