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Hong Kong Company Formation

Offshore Bank Account Opening 

HK Harbour

Offshore Company Formation Overview 


An offshore company is generally defined as:

 

1.  

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


2.

Any companies incorporated in an Offshore Financial Centre (or OFC).

 

An OFC is usually a small, low-tax jurisdiction specializing in providing corporate and commercial services to non-resident companies, and for the investment of offshore funds.  Many of these jurisdictions are known as tax havens.

 

Traditionally, tax havens are free from foreign exchange controls and have introduced specific legislation and corporate structures (widely known as International Business Company or an IBC).

 

An 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.  

 

OFCs that have allowed the formation of IBCs include the British Virgin Islands, Samoa, Seychelles and Marshall Islands.

 

Characteristics of an IBC vary by jurisdiction, but will usually include:

 

  No taxation if the company not engages in local business


  High degree of confidentiality 


  Wide corporate powers to engage in different businesses and activities


  Simple company director and officer requirements


  Lesser reporting requirements


  Simple and inexpensive company administration

 

 

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