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Advantages and Disadvantages of incorporation in Hong Kong? These must be understood!

Released Date: Jan 31,2022 Article Source: HUANZE

At present, many entrepreneurs are turning their investment eyes to Hong Kong. As an international free trade port, Hong Kong can well meet the needs of their international operations.

At present, many entrepreneurs are turning their investment eyes to Hong Kong. As an international free trade port, Hong Kong can well meet the needs of their international operations.Hong Kong company registrationIt can not only improve the international image of the company and create its own brand, but also enhance the competitiveness of the company and create greater profit space. soHong Kong company registrationAre there really only benefits?The following Ring Ze on the registration of Hong Kong companies have what drawbacks!

1Not suitable for domestic trading enterprises: the invoice of Hong Kong company is a proforma invoice formulated by each company according to its own situation, and the VAT invoice of China cannot be issued.

2Cannot handle domestic RMB business: Hong Kong companies are overseas companies and can handle international RMB business, but cannot handle domestic RMB business.

3No import and export right: verification sheet cannot be provided, and domestic company cannot export directly in the name of Hong Kong company. It needs to go through foreign trade company or factory with import and export right.

4Cannot be directly listed in the Mainland: Since Hong Kong companies are not incorporated in the Mainland, they do not have direct management rights in the mainland and must be registered with the corresponding industrial and commercial authorities in China.

5Disclosure of all information about Hong Kong companies: Companies are required by law to report certain data to the registry and disclose it to the public;To inquire the corresponding information of some directors and shareholders of the company, you can inquire on the official website.

6Annual review of the annual report: this link will produce thousands of yuan of annual audit fees, forSOHOSo the cost goes up accordingly.

Advantages and Disadvantages of incorporation in Hong Kong? These must be understood!

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