Setting up a company in HK

[Lau84]

Hi, I am a HK resident and I would like to set up a company in HK to export furniture and other items from China to Australia. I have a partner in Australia that will do the warehousing.

Can someone please tell me what is the best way to set up a company, that will benefit both me and my australian partner. If I understand it correctly, if we set up a company in HK that carries all of the business outside of HK then we are not liable to pay tax inside of HK?

Can anyone please also recommend a good advisor / consultant I can visit in HK? I am looking for someone that will help me structure the business correctly from the beginning. I am experienced in the business model as I have been selling on Amazon for many years, however I was in a high tax country then. Now that I have moved to HK I would like to take full advantage of the opportunity here, and therefore I'm trying to set up everything properly from the beginning to save as much tax as possible (legally) as well as avoiding potential problems in the future.

Cheers!

 

[LoveMyLife]

Whereas you are a resident of Hong Kong, company directed by you is considered to be doing business in Hong Kong. And this company will have to pay corporate tax in Hong Kong from a worldwide income.

Every Hong Kong company which has a director is Hong Kong is a tax redicent of Hong Kong and no tax exemption will be given.

You will have to create a proper companies structure outside of Hong Kong.

 

[GiGoGo]

I'm also an HK resident. If the place where you are taking decisions is in HK, you should pay the tax no matter if the company is in Cayman, US, Seychelles. I'm very happy to pay the 8.25% corporate tax, so no matter for me and then easy to use it as source of funds for buying property.

The trick to avoid paying the tax would be living outside HK on tourist visas while being HK tax resident, in this case you can show to the IRD that the place of business wasn't in HK.

 

[Lau84]

Thank you for your responses. You have really helped clarify my questions. You are right GiGoGo 8.25% corporate tax seems like a deal to me (compared to what I was paying as a Spanish resident!)