As an international financial center in the world, many people choose to register their companies in Hong Kong due to various advantages such as policies, environment and culture. Somebody can ask, ‘Is register Hong Kong company and register foreign trade company same?’
What is the difference between a registered Hong Kong company and a registered foreign trade company?
I. different registered funds:
Hong Kong registered company formation cost does not need to examine capital, lowest 10 thousand Hong Kong dollar, it is the economic responsibility that represents shareholder only.
Registered capital of foreign trade companies need to verify in place, if you want to register a company with the right to import and export, 1 million registered capital for small and medium-sized enterprises higher requirements.
II. Different registered office addresses:
Hong Kong companies can not be registered in Hong Kong field office, do not need to rent office buildings.
Foreign trade company registration must have the office of the business building, especially the import and export company, the government will go to the office site inspection every year.
III. Different employees:
After Hong Kong company is registered, because need not be in Hong Kong field office, also need not go hiring employee, even if be the home office is ok, receive bill and receive money with Hong Kong company directly can.
Foreign trade companies registered after the lease of business buildings need to hire staff, but also a very important cost expenditure.
IV. Different nature of account:
Hong Kong is an overseas company. The accounts opened in Hong Kong are not subject to the mainland's foreign exchange control. The amount of the account can be transferred to any enterprise or individual account in or out of China without approval.
If the overseas payment for goods is transferred to the account of a foreign trade company, it is necessary to handle the verification and tax refund, and the profit part of the account can be retained in the account, or transferred to the foreign exchange account of an individual in the mainland, and then used for foreign exchange settlement. Appearance company has actual import and export right very hard, receive foreign exchange to need to declare.
V. different trade requirements:
Registered Hong Kong company does transshipment trade, need to pass inland factory or foreign trade agent, but can open company account, accept foreign currency directly, without foreign exchange restriction.
Registered foreign trade companies have the right to import and export enterprises, registered capital needs to reach more than 500,000 yuan, or import and export or to entrust factories or foreign trade agents.
VI. Different taxes：
Hong Kong registered companies less tax, low tax rate, no value-added tax and business tax, the main tax is profit tax. The Hong Kong tax system USES the ‘geographical origin tax principle’, which means that a business is not operated locally and profits are derived from overseas. The Hong Kong tax return period is 18 months after the establishment of the company and once a year thereafter.
Register foreign trade company tax kind is more, have value added tax, business tax and income tax to wait, of income tax declare tax to do a month, and have profit to pay tax immediately.
Hong Kong enjoys a good reputation in the world, and the registration of companies in Hong Kong is a fast way to build a brand, while at the same time enabling the enterprise brand to enjoy a higher value status.
For more information about the advantages of ‘Is register Hong Kong company and register foreign trade company same?’, please visit JV Consultants Limited (http://www.jvchk.com).