Offshore Company Formation – The Pros and Cons

Offshore company registration in Hong Kong allows the use of limited liability and nominee directors in the formation of an offshore business. The law on offshore business incorporation in Hong Kong requires the appointment of a company secretary as required by the local offshore business laws.
Before any offshore business can be successfully done in Hong Kong, a business name must be approved by the local Hong Kong Companies Registration Department. A company secretary is also appointed as a condition of registering offshore company incorporation in the city. The secretary will be responsible for all the legal requirements that apply to an offshore business, including the application and approval of an offshore company’s Articles of Association.
Another essential requirement of an offshore company is to appoint one or more company’s directors. A company’s directors are usually appointed through a Hong Kong nominee director company, which has been chosen from among the nominee director companies in the Hong Kong list of nominated directors. When there are only two or three directors to be appointed, the company secretary is assigned to coordinate the naming of the directors among the various nominee director companies and the company secretary.
There are different types of company registration, and each type has its own set of requirements. If you are planning to do business in the Asian region, you need to choose one of the offshore business registration methods available. It will allow you to choose a suitable company registration method, which can meet your international requirements.
After registration, the registration fee for an offshore company in Hong Kong is considerably less than what it would cost in mainland China. The fees are usually relatively low as compared with the costs involved in creating a business in China. Therefore many companies prefer to establish an offshore business in Chinese territory instead of the UK.
The offshore business registration procedure is not overly complicated in Hong Kong; however, it is a good idea to seek the help of an experienced solicitor for this. An experienced offshore company lawyer will be able to guide you through the process from start to finish, whether you are doing business in mainland China or Hong Kong and the Hong Kong Offshore jurisdiction.
To conduct an offshore business in Hong Kong, you will have to get a registered office in the territory and hire a solicitor to do the formalities. If you are doing an import or export business in Hong Kong, you will need to get a license to conduct your business in the territory from the Hong Kong Commercial Court. Besides, your business will also need to get a license from the Commercial Office of Hong Kong to operate its office. The licensing procedures are straightforward, and only a few hours are needed to complete them.
For all these reasons, if you are planning to do business in China, you should consider an offshore business in Chinese territory rather than Hong Kong for your business. However, if you are looking for a low-cost route to setting up an offshore business in Hong Kong, you can still have an offshore business in China. The Chinese registration process and license requirements are far more burdensome.
Most offshore companies set up in Hong Kong do not bother about these issues, but some do. It is because they can get their money back in one form or another if their business fails, so they are more inclined to stick to the necessary procedures rather than invest time in the registration process.
The advantages as mentioned above of offshore company incorporation make it evident that there are benefits associated with offshore company registration methods. However, it would be best if you also considered the disadvantages of the same. It is essential to take a balanced view of the pros and cons when you want to get yourself a company registered in offshore jurisdictions.
If you are interested in setting up a business in Hong Kong, you should find out how you can get firm incorporation there. A business registration company offers a lot of benefits and is one of the most effective ways to incorporate an overseas business. You can then open an online account and pay the nominal registration fee, and you will have access to a business directory. You will also be able to access all the necessary business information about the business before you sign an agreement with it.