Issue invoice to hong kong based company, how to solve?

[sonato]

I consider to setup a Hong Kong company for my business, 1 it's easy to setup total anonymous, found my way through the mentor group finally, 2 it is far away from all the trouble in the USA nad Europe.

Is it that easy just to find a accounting program, generate invoices to my customers and put the hong kong company name on that invoice?

Or does it require anything specific in order to invoice other people. I was also considering to invoice the Hong Kong company later on from another offshore company located in the BVI which is in the process to be setup. Same question apply here, can the BVI company invoice the Hong kong company just as I require it to be or are there any tax laws or accounting laws I need to take care of?

 

[clemens]

To send an invoice to a Hong Kong company does not require any permission from anyone. The question is if you will have troubles to transfer money from an Hong Kong bank account that belongs to a company there because of all the strange political laws they have in that country.

 

[JustAnotherNomad]

It will probably be difficult to get access to banking for that company.
My biggest concern would be that your clients will have issues getting your invoice accepted if you can’t present a tax residency certificate for the company.
Other than that, it should be smooth sailing.
Maybe check with a HK accountant about any specifics that would need to be contained on the invoice per HK law.

 

[sonato]

have issues getting your invoice accepted if you can’t present a tax residency certificate for the company.

certificate for the Hong Kong company you mean right?

 

[JustAnotherNomad]

Yes. Because your company won’t be paying any taxes in Hong Kong.
If your customers are audited, they could otherwise face issues getting the invoice accepted. It’s probably not extremely likely that that would happen, but it’s not impossible either.

 

[sonato]

What is this certificate called which I will need for the Hong Kong company?

Is it only if I want to invoice the HK company or always require this certificate?

 

[JustAnotherNomad]

It’s called a tax residency certificate. It’s nothing specific to Hong Kong. The certificate states is issued by the tax authorities and declare that the company actually exists and pays its taxes.
As an offshore company doesn’t pay any taxes in Hong Kong, the Hong Kong authorities won’t issue such a declaration. And if a client of yours is audited, they may demand it as proof that your company paid its taxes. Otherwise they may have to pay additional taxes in their own country.
It’s not likely that it will happen, but it isn’t impossible either. Basically if you can’t get the certificate, your client will know there’s something fishy about your taxes.