What are the Benefits from Hong Kong Trading Company?

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What are the Benefits from Hong Kong trading
company?
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• If you are a Hong Kong trading company
  manufacturer who exports you will generally be
  taxed and attract expenses in 3 ways
• Export duty
• Freight costs
• Insurance fees
• The range of costs involved varies enormously due
  to different tariffs imposed on different types
  of products.
• However, it cannot be avoided, and therefore
  exporting directly from China does attract the
  additional tax cost levied by the Chinese
  government.

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• Minimizing your tax burden should always be in
  mind, and in order to get the best deal on tax
  and doing business in China in general we can
  look at using Hong Kong as an exporting hub.
• Before we can export from Hong Kong trading
  company though, Hong Kong company formation is
  preferable. A local presence allows Chinese
  manufacturers to act as a local Hong Kong trading
  company in Hong Kong, and gain certain benefits
  not available to Mainland Chinese companies.
• No Export Tax
• All products except fuel, tobacco, and alcohol
  are exempt from export duty and taxes. This gives
  HK companies a financial advantage when exporting
  that Mainland counterparts simply don't have.
•  

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• No Restrictions On Capital Profit Transfers
• Unlike Mainland China where the transfer of funds
  either in or out of the country is heavily
  regulated and subject to fees, in Hong Kong there
  are no restrictions meaning that a local company
  could transfer back into China more easily.
• Profits Generated Outside Of Hong Kong Are Tax
  Free
• If your China company is making profit on goods
  in the mainland, but exporting via the HK company
  they won't be subject to tax there, as only
  profits made in Hong Kong are taxed with
  corporate income tax, and then only at 16.5. The
  DTA network must also be mentioned (double tax
  treaty), as many safeguards are in place to
  minimise the risk of Hong Kong companies and
  individuals being taxed twice, both locally and
  abroad in Austria.

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• CEPA
• CEPA is a revolutionary free-trade agreement
  aimed at enhancing the relationship between
  Mainland China and Hong Kong.
• It allows greater and easier access to both the
  Mainland and HK markets for companies on both
  sides of the border.
• It may be that you require to import goods or
  services in order to conduct your business in
  China, and if you use a Hong Kong company to do
  so then they may well be subject to a 0 tariff.
  The aim of CEPA is to "progressively reduce or
  eliminate tariffs and non-tariff barriers on
  substantially all the trade in goods between the
  two sides so moving forward we can expect to see
  more and more tax savings if using a Hong Kong
  company in tandem with a Mainland HQ.

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• Ease Of Doing Business
• The very nature of Hong Kong stems back to its
  Colonial British history.
• As an overseas territory of the United Kingdom,
  Hong Kong's laws and business practices were
  built on the same foundations as those in
  Britain, namely 'common law.

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Contact us

• Sail Smooth, LTD.
• Locations Miami, FL, AP-018004
• Phone [phone]
• Website www.sailsmooth.com.hk
• E-mail info_at_sailsmooth.com.hk