How do I pick - HK or offshore entity?

• Many of our clients waive between these two options due to taxation, privacy protection, bank account opening, etc. Please see here for a clear comparison of the pros and cons of setting up a HK limited company vs. an offshore company.
• One key to help you decide is whether your business involves any business activities in HK. If your business has profits derived from HK, even if it is registered in offshore jurisdictions, your profits are still liable to HK Profits Tax and you need to file the Profits Tax Return compulsorily. In this case, forming a HK limited company would be more suitable. 
• However, if your company will not involve a trade, profession or business in HK that has profits arising in or derived from HK, i.e. your company will be operating and generating all profits wholly outside HK, it is possible that your company can be claimed as an ‘offshore business', and you may consider establishing an offshore company to fit your business nature, without the need to file tax in HK (final decision to be concluded by the IRD).

How much is the maintenance fee from the 2nd year onwards?

• The maintenance fee of an offshore company starts from HK$6,500 per year. 
• If you have subscribed a HK registered business address for receiving mail such as bank letters, business letters, Government letters, etc., the renewal fee is subject to your joined plan. Please find the rate here. 

How to open a bank account for my offshore company?

• Our experienced advisory team will arrange the entire bank account opening process with the bank which is the most suitable to your business, and help prepare your documents based on the requirements of different banks.
• We have numerous offshore bank partners, such as BlueOrange powered by Baltikums Bank, ABC Banking Corporation, Meinl Bank AG, CIM Bank, Euro Pacific Bank, Rietumu Banka, etc..

Is it still suggested to prepare accounting & audit reports?

• Yes from a good business practice angle. Although it is not required to prepare and submit audited financial reports to the HK IRD yearly for an approved 'offshore business', we would suggest the company to develop its accounting and audit reports still in order to keep track of the business's financial performance and be able to think ahead for better planning. 
• If you are concerned about the accounting and audit arrangement part, no worries! We have a full accounting team in here with in-house qualified accountants, on standby to help you start from scratch - from preparing the very first financial statements (P&L account, balance sheet, trial balance), arranging audited statements under SME, PE or main GAAP format, to providing advice for your tax compliance and strategies with extensive knowledge of HK tax regulations. You will never miss a local deadline nor be messed up with the cumbersome accounting work anymore. Chat with our team to see how our solutions can fit your specific needs. 
• What's more, our Equiom internationl accounting and tax team is ready too to solve your overseas statutory accounting / tax queries.