Putting money into Hong Kong as offshore investment good?

[Jake]

"As far as choice of jurisdiction, Hong Kong is very popular. The
banks there have relatively high interest rates and are also big on
privacy. It's also a highly legitimate financial center. They welcome
foreign investors. Lastly, it's not some third-world Carribean island.
It belongs to China, a UN Security Council member, and a nuclear
power. This last point is important, as the Chinese government does
not automatically recognize foreign court judgements. They will not be
bullied by some dinky state-level civil court. This gives you an added
level of asset protection against any future unforseen lawsuits,
palimony claims, etc."

Got this in an another forum and already put some my excess investments into Hong Kong. What you guys think? Would you invest into Hong Kong?

[momopi]

"As far as choice of jurisdiction, Hong Kong is very popular. The
banks there have relatively high interest rates and are also big on
privacy. It's also a highly legitimate financial center. They welcome
foreign investors. Lastly, it's not some third-world Carribean island.
It belongs to China, a UN Security Council member, and a nuclear
power. This last point is important, as the Chinese government does
not automatically recognize foreign court judgements. They will not be
bullied by some dinky state-level civil court. This gives you an added
level of asset protection against any future unforseen lawsuits,
palimony claims, etc."

Got this in an another forum and already put some my excess investments into Hong Kong. What you guys think? Would you invest into Hong Kong?

You can get some basic info on HK legal system here:
http://en.wikipedia.org/wiki/Legal_system_of_Hong_Kong

HK is better known for its low tax base:
http://www.lowtax.net/lowtax/html/hongkong/jhktax.html

However, depending on your needs, you may be able to benefit more from setting up a company where you reside. Since I'm more familiar with TW, I'll talk about TW instead.

Taiwan is not known to be a low tax base country for foreign companies, but it's not high either (lower than US). To establish a foreign investment company in TW, you need to deposit a minimum of NT 250,000 ($7,500 USD) at local bank as proof of funding, and pay an accountant to assist you with paperwork. The accountant's fee could range from NT 40,000 - 140,000 depending on where you go, plus NT 3,000 ($100) per month for monthly accounting services (payroll, expenses, etc).

Your accountant will assist you with the following:

1. Submit the company application to the Ministry of Economic Affairs for reservation of Chinese company name and business scope.
Required documents: Proposed Chinese company name and business items
Company information sheet: we can provide template
Copy of your passport, residence address and Chinese language name

2. Submit the application to the Investment Commission of the Ministry of Economic Affairs for foreign investment approval (FIA)
Required documents: Notarized and authenticated Power of Attorney (accountant will provide template)

3. Submit the application to the Investment Commission of the Ministry of Economic Affairs for investment appraisal
Required documents: Original inward remittance notice issues by bank
Original exchange memo issues by bank
Copy of passbook of the preparatory office of the Taiwan company

4. Submit the application to government authority for company registration:
Required documents: Articles of Incorporation
Shareholder agreement
(accountant will provide templates)
Copy of lease agreement from landlord or consent of leasing from landlord (if applicable)
Copy of house tax receipt (if applicable)
Original balance certificate of bank account of preparatory office of the Taiwan company


It's a little more complicated to setup a company in TW than certain tax havens, but the benefit is that once it's set up, there is NO ANNUAL FEE. You're still liable for business/income tax but there is no annual business registration fees.

Once your company is set up, you can use it to write-off all kinds of stuff as business expenses. This is very useful if you don't qualify for the out-of-country residence rule of 330 days per year for $80,000 income tax exclusion. You can also keep company profits in the company and not pay taxes on it -- use it to buy a "company car", lease "company housing", pay for "company trips", etc. The same can probably be duplicated in most countries where you reside.

[Vincentasht]

Hello

There are many jurisdictions with good rates and interesting solutions to open company for business.
I was collect the information about few months, but after this time I found world-offshore they helped me with an offshore company formation, without any problems.
They helped me to choose a jurisdiction for my own company. There are very communicative managers, who know their work very good.

I wish you good luck, and have a nice business solution
Best regards!
Vincent