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Starting an offshore company in Hong Kong

Discussion in 'Business & Tax Advice' started by 1337python, Jun 3, 2014.

  1. 1337python

    1337python Regular Member

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    Hello BHW,
    I'm here to ask if anyone here has started an offshore company in Hong Kong to cut taxes? What are your experiences with it?

    I'm really interested in starting a company there, because Hong Kong corporations don?t pay tax on business outside of Hong Kong.
     
  2. Panther28

    Panther28 Elite Member

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    Your better off sticking to your own country for cost purposes. Technically any business can cut their tax bill to $0.00 legitimately.
     
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  3. 1337python

    1337python Regular Member

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    Not really, taxes in Lithuania are just ridiculous. You basically have to give about 60% of your income if you pay all of your taxes properly.
    Also it would be way more efficient to just build a corporation in Hong Kong, than to pay thousands of dollars to get around the system.
     
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    Last edited: Jun 3, 2014
  4. Panther28

    Panther28 Elite Member

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    are you self employed or working through a business structure atm?
     
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  5. 1337python

    1337python Regular Member

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    I'm currently self-employed and by being so I still have to pay about 30% of my income.
    The matter is, I'm interested in Hong Kong, not my countries taxes, because they're bullshit and you can't really do anything about it.
     
  6. Duffers5000

    Duffers5000 Elite Member

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    What do you plan on doing with all the money you save up in Hong Kong ?
     
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  7. Panther28

    Panther28 Elite Member

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    Ask an accountant directly how much would your tax bill be if you setup a private limited liability company (UAB); and payed yourself $500 a month, and then claimed all the rest of your expenses as business expense. Tell him you want to get a tax rebate every month from the government. He will show you how to do it, and you can get back to your business.
     
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  8. 1337python

    1337python Regular Member

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    What's different with money in Hong Kong, than in America, Europe and other countries?
    Ok, so if I were to do that - paid myself 500$ every month, and my let's say my real income is over 5k$. Would I have to spend the rest and claim it as business expense or what?
     
  9. mlwdleads

    mlwdleads Newbie

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    starting a corp in hk is really easy and brainless though if you would ever like to go that route
    however, if you would like to open a bank account under that corp, you would then need to visit the bank personally
    the company i have used in the past however, has direct and good relations with certain banks and opening the accounts are usually a walk in the park, you just need to be physically present
     
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  10. 1337python

    1337python Regular Member

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    Well it's a no-brainer that you have to be physically there to open a bank account, I think it's custom for most of them.
    What company did you use?
     
  11. Panther28

    Panther28 Elite Member

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    Well you could, or you could purchase assets, or also build up cash reserves. (which is an asset too)
     
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  12. 1337python

    1337python Regular Member

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    What's the upside to purchasing assets if I'm the only one in the LLC ( UAB )
     
  13. Panther28

    Panther28 Elite Member

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    its the answer to your main question :) cut your personal taxes. All governments around the world want business to succeed, so the tax rules are built in favour of business, not in favour of single people. Basically, since your doing the tax administration for the government, and providing opportunities, you get a bonus. (correction- YOUR BUSINESS GETS A BONUS)
     
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  14. Duffers5000

    Duffers5000 Elite Member

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    Well off shore money is offshore. You will be hammered for tax if you decide to bring it back home in any way shape or form.

    You will pay taxes on profits. A well run company should be showing minimal profits. Its in your interests to invest all profits back into your company to grow it.

     
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  15. Panther28

    Panther28 Elite Member

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    you can learn alot if you get some of the public accounts for the large companies listed on the lithuanian stock market. you will be able to see how they do it. Just remove a few of the 00000's at the end of the accounts to make them a bit more understandable, and closer to the level you are at currently.
     
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  16. 1337python

    1337python Regular Member

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    Okay I'll do just that, and try to learn something from it. Do you have Skype maybe? If you would be willing to answer any questions I have regarding taxes since I'm pretty green in this field as I had just realised, haha.
     
  17. Trepanated

    Trepanated Supreme Member

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    I lived in Hong Hong for a few years and knew a couple of really good accountants.

    I haven't kept in contact with them but I'm sure I will still have their business cards somewhere.

    I will see if I can dig them out. If I can I will be happy to ask them if they would have a chat with you.
     
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    Last edited: Jun 3, 2014
  18. 1337python

    1337python Regular Member

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    That would be really great, I would appreciate that a lot!! Drop me a PM if you manage to do it :)
     
  19. liftitbuddy

    liftitbuddy Newbie

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    OP, I am an attorney and CPA in the USA. I have helped many clients form offshore businesses and bank accounts. I have a good relationship with agents in HK and also HSBC. Please PM me if I can be of assistance.
     
  20. mlwdleads

    mlwdleads Newbie

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    yes well there are certain industries which would be happy to open a bank account for you and start the corp, and after which transfer it to you

    talking about hk specifically, the company i used was profit accounting.