Hong Kong Company questions

[georgehotze]

Hello. I would like to form an hong kong company because i see it has zero tax if the company makes transaction outside of Hong Kong.(Correct me if i am wrong) . I want it for my dropshipping business. For bank account i can use transferwise to make business.

1. As a non Hong Kong citizen - resident is it easy to open a business Paypal account or they ask for many documents i cannot obtain? The sames for Stripe and 2checkout payment processors?
2. As I can see there are many type of companies in Hong Kong (
Limited liability, Company limited by guarantee, Unlimited company, Company limited by shares, Sole Proprietorship. Which type will be the most convenient. I just want the company for dropshipping business and mostly payment processor. I am not planning to make business in Hong Kong. I just want to take advantage of the 0 tax rate.
3. Will i need to keep record of all transactions made abroad? (keep books). Does my accountant is Hong Kong need to convert all invoices to the local Currency?
4. Will my name be visible on public company records?
5. Can I invoice another company of mine (abroad eu company) for services? or it will be dangerous?
4. Do you recommend any good agent that can help me form company there?

Thanks for your time.

 

[negon]

georgehotze said:
1. As a non Hong Kong citizen - resident is it easy to open a business Paypal account or they ask for many documents i cannot obtain? The sames for Stripe and 2checkout payment processors?
Click to expand...

You can't setup a PayPal account for your HK company if you don't live there. PP don't accept it any longer. You will need to have someone there to do this for you as well as to setup a bank account!

as for qustion 2, where do you see this?

georgehotze said:
3. Will i need to keep record of all transactions made abroad? (keep books). Does my accountant is Hong Kong need to convert all invoices to the local Currency?
Click to expand...

yes, that's all required and that's why it's complicated to maintain a HK company cheap. You need some local tax consultant to help you with all of this.

georgehotze said:
5. Can I invoice another company of mine (abroad eu company) for services? or it will be dangerous?
Click to expand...

why should it be dangerous?

 

[devnull]

Upon starting an company in HK, you receive the business registration letter with the business adress, it is renewed every year. It is enough as proof for PayPal.

For stronger proof, you should have an Serviced Office and buy an mobile SIM to generate utility proof on this address, in case, if they require proof lesser than 3 months at once time point.

Worked for me, however the Banking with HK company is very hard. After 3 years, i still have no bank account in the name of HK company, it may be that the company is too famous.

 

[JohnLocke]

devnull said:
it may be that the company is too famous.
Click to expand...

What do you mean with that?

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[devnull]

Admin said:
What do you mean with that?
Click to expand...

Im running a big online business site with 1.5M annual turnover. Everyone when they see the company name and they know it immediately what my business is.

 

[darneroni]

in HK u will have to pay tax, then apply for offshore tax status which takes a year, and if approved they refund you..

i have a HK company but the costs to maintain are sky high as much as $4000-5000 per year including all fees, audit, accounting all that jazz

 

[AJ888]

Although this seems to be an old thread, I would still be interested how OP ended up? I am in a similar situation, but reading from the comments HK does not seem to be the ideal solution. What kind of setup would be instead if I may ask?