AmPlus Business Services Limited

 

 

Hong Kong Company Formation

Offshore Bank Account Opening 

HK Harbour

FAQ - Offshore Company Formation

1.

What is an offshore company?

2.

Why use an offshore company?

3. 

What is the difference between an offshore company and an IBC? 

4.

Which jurisdiction should I choose for my offshore company? 

5.

Do jurisdictions place any restrictions on offshore companies carrying out local business? 

6.

Can an offshore company open a bank account in Hong Kong? 

7.

Is it possible to register a BVI company with a Chinese name in Hong Kong? 

8.

What is a shelf company? 

9.

How long does it take to complete the set-up of an offshore company in Hong Kong?

10. 

Do we need to be present in Hong Kong during the offshore company formation process?

   
   
   
   
   

 

   

1.

What is an offshore company?

 

An offshore company is generally defined as:

 

i. a company which is incorporated outside the jurisdiction of its primary operations (sometimes known as a non-resident company) or

 

ii. any company (resident or otherwise) incorporated in an offshore financial centre which is usually a small, low-tax jurisdiction specializing in providing corporate and commercial services to non-resident offshore companies, and for the investment of offshore funds.  Please refer to the weg page Offshore Company Formation Overview for more details

 

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2.

Why use an offshore company?

 

Creating an offshore company brings a number of advantages including privacy protection and tax benefits, as well as facilitating international trade and offshore banking.  Please refer to the web page Advantages of Setting-up Offshore Company for more details.

 

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3.

What is the difference between an offshore company and an IBC?

 

An International Business Company (IBC) is an offshore company formed under the laws of some jurisdictions as untaxed company which is not permitted to engage in business within the jurisdiction in which it is incorporated.  An IBC is generally incorporated in a tax haven and is essentially the same entity as an offshore company designed exclusively for international business and foreign investment.

 

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4. Which jurisdiction should I choose for my offshore company?
 

The most important factor in choosing a jurisdiction is to be sure that your company will be incorporated in a country that has :

 

i.  good reputation

ii.  political and economical stability

iii. sophisticated corporate laws

iv. reliable means of communication

 

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5. Do jurisdictions place any restrictions on offshore companies carrying out local business?
 

Many jurisdictions will not allow offshore companies to do local business. Most, however, will allow you to open a bank account and hold your company meetings there.

 

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6. Can an offshore company open a bank account in Hong Kong?
 

Yes, an offshore company can open a bank account in Hong Kong and follow the same opening procedure as a Hong Kong limited company.  However, additional information and documents may be required to submit to bank. e.g. company's business nature and principal activity, personal information of company's director, Certificate of Incumbency and Certificate of Good Standing...etc.  Please refer to the Web Page Bank Account Opening Requirement under Guide  section.

 

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7. Is it possible to register a BVI company with a Chinese name in Hong Kong?
 

Yes, apart from a English name, a BVI company can register a Chinese name as an additional name with an extra fee.

 

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8. What is a shelf company?
 

The term “Shelf” refers to the fact that incorporation documents are literally purchased of a bookshelf filled with pre-registered companies that are instantly transferable to the buyer. Other common names include a “Shell company” and a “Ready-made company”.

 

To incorporate a new company, it can often take up to 2 weeks to process the official corporate documents.  Hence, company names are normally pre-registered to save waiting time. The cost to purchase a ready made company and a tailor made company (a company with your own chosen name) is the same.

 

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9.

How long does it take to complete the set-up of an offshore company in  Hong Kong?

 

For a tailor-made company, it needs around 7 to 10 working days to complete the legal procedures for forming an offshore limited company.  For a ready-made company, it take around 1 -2 working days to complete the registration.

 

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10. 

Do we need to be present in Hong Kong during the offshore company formation process?

 

No, you don't need to be physically present at the time of company incorporation. However, depending on the bank you choose, you may have to meet with the bankers personally in Hong Kong at the time of account opening.

 

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