Thinking about incorporating in Hong Kong

[Naka]

Hi guys, I have been playing with the thought of incorporating a limited in Hong‌ Kong for a while.

Normally I am from Germany and the equivalent would be a‍ GmbH. However, to make one 12.500€ would be required in the beginning and besides this⁠ there are higher taxes, more paperwork and more kinda taxes. My residency is in Germany,⁤ but I am only staying there for 1-2 months per year. Mostly I am in⁣ Asia (Thailand, China, Korea and Japan). Also visited Hong Kong and Singapore many times and⁢ I prefer HK. Since my main business is app developing (mostly get paid from Facebook,︀ Apple and Google) but would also like to sell and export goods from China. In︁ fact I already know some manufactures in Shenzhen, etc.

I would use Neat.hk offer to︂ incorporate + getting their bank acount. On there I would just receive all the payments︃ I get from Facebook, Google and Apple. Later on I would probably make a real︄ bank account and start importing/exporting/selling goods to Europe and North America.

Since I am quite︅ a newbie to business I have several questions:

1. Do I have to give up︆ my german residency, because they would tax the HK Limited like a german GmbH if︇ german authorities think I am running the business while I am in Germany (even tho︈ I am in Germany only 30-60 days per year)?

2. If I am the CEO︉ of the HK Limited, could I easily apply for business visas in other countries such︊ as Thailand, China or HK?

3. In general, is it a good idea to incorporate︋ in HK, if I am in the app developing business and later wanna source and︌ sell products from China?

4. If I incorporate in HK and become the CEO of︍ the HK Limited, would HK report this to Germany? I don't plan to pay myself︎ any salary in the first year, instead reinvesting most of the money.

best regards

 

[LoveMyLife]

1. Yes. As long as you hold at least paper residency in Germany, you are‌ german tax rasident and all companies directed by you will be considered to be a‍ german tax resident. So you have to give up your residency there. As long as⁠ you are citizen of Germany, you can come to Germany just with passport.. If you⁤ do not have a chldren attending a school in Germany, there is no reason to⁣ have a residence permit there, if you can live most of the year overseas.

2. Having business in HK does not mean, you can apply for visa in any of⁢ countries you mentioned. Thailand has Elite visa program. It is expensive, but if you can︀ afford it, you can live there. China - forget about it. Hong Kong - if︁ you want to have a HK company, you shall not apply for visa in HK.︂ If you do that, your HK company will become full tax resident of Hong Kong︃ and will be tax in Hong Kong on its worldwide income.

3. Generaly, yes. Depends︄ on amount of transactions. Accounting and audit are very expensive in HK. If you will︅ receive payments from all sources one per month, it can work. If you will receive︆ payments on a day basis, costs can be too high.

4. Just in case if︇ you in tax exemption certificate application file germany of place of directors residence. It is︈ bettet to obtain residence permit in some country with territorial taxation forst, and incorporate HK︉ company afterwords. If you will be able to prove having residence visa in Thailand, they︊ will report it to Thailand.

 

[Naka]

I mean not resident visa, but business/work visa. For example, if I deal with chinese︀ suppliers/manufactures it shouldn't be a problem to apply for a business visa since I am︁ working with chinese companies, right?

You mean if I apply for visa in HK they︂ me to pay income tax in HK? Otherwise I only need to pay the corporate︃ tax, right?

At the moment I am just using tourist visas all the time to go around︈ in Asia. I would first incorporate the HK company and after this give up the︉ residency in Germany.

 

[LoveMyLife]

Any kind of work visa︀ in China will make you chineese tax resident and you will have to pay there︁ taxes from all your worldwide income. And you will also have to pay corporate tax︂ fro all foreign companies in China, also.

If you will have a HK visa, you︃ will have to pay corporate tax of HK company. Dividends will be paid to you︄ tax free. All other income from a foreign country will be tax free as long︅ as it is pasive. All active income - as income of sole proprietor, will be︆ taxed in HK.

If you incorporate first, and you apply for corporate tax exemption, HK︇ tax office will inform Tax administration of Germany every year.. Change how you will do︈ it.. Obtain residence permit on some territorial tax country first and incorporate a company in︉ HK afterwords.

 

[Naka]

Can someone else go along with the info above?

From what I know I can‌ apply the tax exemption status two years after incorporation, until then I would need to‍ pay the 8,25% profit tax (until I hit the limit) anyway for corporate tax, no⁠ matter where I live, I don't necessarily need a HK visa to pay corporate tax⁤ from what I know.

Would be nice to hear more information, also from other guys⁣ who incorporated in Hong Kong.

 

[Naka]

Anyone here who got some information? Would like to hear more opinions on this.

 

[Spinat]

They won't be less paperwork in Hong Kong it is a joke with the HK‌ company formation service, furthermore you risk your company to be in bad standing if you‍ don't pay their ridiculous high accounting, auditing and other shitty fees.

Search the forum for⁠ HK formation there is lot's of info already.



Code:


site:offshorecorptalk.com hk company

 

[Naka]

Hi, first of all, thanks for your reply.

Basically, I incorporate to receive⁤ the money I make from ad networks such as Adsense, Facebook, Unity and some other⁣ networks. I can decide how often they are going to pay me, so I can⁢ keep the number of transactions low if I want to.

From what Neat told me︀ I can choose any accountant I want to work with. I know there are many︁ companies providing incorporation + auditing services for a delusional price. A complete rip off in︂ my opinion.

I will contact Neat know to ask for the ongoing costs of their︃ address, secretary and also the prices of their accountant/auditing team.

 

[erni]

ask them‍ so make sure you get some guarantess or something.

HK is a total RIPP OF⁠ if you ask me. It's for the big players not for the average joe.