Seychelles + HK

[coromandel]

Hi, 3 questions for the pros here:


1. If I incorporate in Seychelles and open a HK bank account. Can I invoice my clients from a HK mailing address, receive $ to the HK account without being a HK tax resident/HK company (I want to have 1 company only in Seychelles)?


2. To open a HK account I need to travel to HK. Are there any reputable bank accounts I can open that won't need face-to-face meetings? (e.g. Singapore, Dubai?)


3. If I open a Seychelles company and am resident in the EU - to what extent will my Seychelles company be known to my local tax authority?


Thanks for your help in advance

 

[hugger]

see below for answers

 

[hugger]

Hi, 3 questions for the pros here:
1. If I incorporate in Seychelles and open a HK bank account. Can I invoice my clients from a HK mailing address, receive $ to the HK account without being a HK tax resident/HK company (I want to have 1 company only in Seychelles)?


2. To open a HK account I need to travel to HK. Are there any reputable bank accounts I can open that won't need face-to-face meetings? (e.g. Singapore, Dubai?)


3. If I open a Seychelles company and am resident in the EU - to what extent will my Seychelles company be known to my local tax authority?


Thanks for your help in advance

Answers to the questions above:


1. Yes. But it will be more difficult to obtain the bank account in Hong Kong using only a Seychelles based company. It will be much easier to open the Hong Kong bank account if you have a Hong Kong company (which in turn is owned by the Seychelles company).


Also remember that Hong Kong companies do NOT pay tax on revenue from outside Hong Kong.


2. Not that I have found. The Know Your Client (KYC) and Anti-Money Laundering rules mean that most banks want to meet the owner of the account.


3. That depends on any Double Taxation legislation between your country and the Seychelles

 

[coromandel]

Thanks Hugger, very helpful.


It seems Seychelles + Cyprus company/bank account is a popular option here on the forum.


I'm considering that as another option alongside the suggested Seychelles + HK company/bank account.


I'll be billing Fortune 500 companies (countries = all over) for consultancy work so I want to look legit to their accounts departments.


Any pointers I should consider in the comparison between Seych/HK vs Seych/Cyprus?


(My country has no DTA with Seychelles)

 

[Zqq]

The Seychelles and looking legit do not go together. The Seychelles is notorious for tax evasion and has been criticized for poor anti-money laundering legislation and enforcement.


Hong Kong company with Hong Kong bank account is and looks legit.

 

[coromandel]

Thanks, I understand the Seychelles part hence the 2nd company.


The company will invoice from either HK or Cyprus.


My question is choosing between the two and any implications in this choice.

 

[hugger]

Thanks, I understand the Seychelles part hence the 2nd company.
The company will invoice from either HK or Cyprus.


My question is choosing between the two and any implications in this choice.

My personal view is that Hong Kong is far superior to Cyprus. This is primarily based in the fact that Hong Kong is growing at a phenomenal rate and is linked to the China business juggernaut. Hong Kong is also very well respected as one of the major business centres of the world.


See the following survey from the World Bank and the International Finance Corporation ( contact us )


You may also want to have a quick read of this thread


/forum/f5/trans-funds-onshore-offshore-corp-account-evasion-avoiding-19485/

 

[coromandel]

Hugger,


I read your link with interest and found the information very useful.


My business is able to do it, so would it work to simply set up a HK company with HK bank account?


I'm making a couple of assumptions here:


* I would not need a Seychelles holding company. As there are 2 directors in different countries + no physical office + multiple country clients our rationale for HK is not tax but purely for business efficiency


* We are a known company with a public face so it's pointless having nominee/bearers in HK. We would personally be listed as s/h and directors and that's okay because of the assumption above


* Business income would accumulate in HK (I have a personal account in HK) and would not be repatriated onshore (i.e. EU). Assuming it doesn't get caught by CFC regs, it's legit.


Am I making any school boy errors in my assumptions here?

 

[hugger]

Hugger,
I read your link with interest and found the information very useful.


My business is able to do it, so would it work to simply set up a HK company with HK bank account?


......

The Seychelles company is only of value if you want the Directors of the Hong Kong company to be anonymous. (The Seychelles company would be the Corporate Director of the Hong Kong company)


If anonymity is not important, then a Hong Kong Company with a HSBC / Standard Chartered / Citibank, bank account would be a gold standard company with minimal tax. (If you have NO Hong Kong customers then you pay NO tax).