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AbacusHKCPA - Company Formation and Company Registration by Hong Kong Accountants (HKCPA)

Abacus CPA
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Beijing
(
8610
)
6563 7980
E-mail :
Info@AsiaBS.com
Fax :
(
852
)
8102 2593
Hong Kong
(
852
)
8102 2592
Guangzhou
(
8620
)
2831 3599
Shanghai
(
8621
)
5836 2605
 
 
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Success Story

Enjoying largest benefit - using Hong Kong company as stepping stone

Background
  1. Mr. A is from USA with USA company "USA Ltd";
  2. Business nature is about management consulting;
  3. His business activity with China include :
    • invest in China to setup Wholly Foreign Owned Enterprise (WFOE);
    • sell service to China clients;
New arrangement
  1. Mr. A forms a Hong Kong company "H Ltd";
  2. using H Ltd as investor in China to setup the WFOE;
  3. and using H Ltd to sign service contract with China client;
Benefit
  1. setting up WFOE
    • Disclosing less information to China government
      • Originally, need to provide information of USA Ltd to China government;
      • Now, just need to provide information of H Ltd;
    • time to arrange document is shorter
      • USA Ltd documents needs to be translated into Chinese and be certified by China Embassy;
      • document from H Ltd is more ready for China use, and the certification process is more standard in Hong Kong - time and cost more under control;
  2. dividend from WFOE
    • when China company earns profit and need to pay back to investor, withholding tax in China applies;
    • if paying to USA Ltd, the rate is around 10%;
    • if paying to H Ltd, the rate is around 5%;
  3. service fee from China client
    • when China client needs to pay service fee to USA Ltd, withholding tax of 15% applies;
    • when China client needs to pay service fee to H Ltd, withholding tax of 12% applies;
Example : break-even
  1. Cost of setting up HK company = around HK$ 9,000;
  2. Cost of annual maintenance of HK company = around HK$ 20,000 (including accounting and audit fee);
  3. If China income is HK$ 670,000
    • saving 3% of withholding tax (China related transaction) = HK$ 20,100
    • the cost almost break-even of maintain the Hong Kong company.
Page Top
Service in Hong Kong
  1. Accounting, Audit & Taxation
  2. Document Certification
  3. Bank Account Opening
  4. Company Secretary
  5. Registered Address
  6. Nominee Shareholders & Directors
  7. Virtual Office
  8. Trading Support
  9. Trademark Registration
  10. Online Credit Card Payment Service

Service in China
  1. Accounting Service
  2. Trading and Logistic
  3. Other Service
 
 Company Formation
  1. Hong Kong
    1. Limited Company Formation
    2. Unlimited Company Formation

  2. China
    1. WFOE (Wholly Foreign Owned Enterprise)
    2. In Free Trade Zone  |  Consultancy  |  Restaurant
      IT  |  Manufacturing  |  Wholesaler  |  Retailer
    3. JV (Joint Venture)
    4. RO (Representative Office)

  3. Offshore
    1. BVI (British Virgin Islands)
    2. Samoa
    3. Seychelles
    4. Marshall Islands
 
  1. Why Abacus
  2. Contact Abacus
  3. Office Locations
  4. Working with Abacus
 
  1. Fee Table
  2. Payment Method
 
  1. FAQ's
  2. Success Story
  3. Glossary
  4. Useful Link

AbacusHKCPA - Certified Public Accountants base in Hong Kong (HK) - ACCA, HKICPA, providing services of

company formation, financial management, business advisory, tax planning, auditing and accounting.