Can you live a tax-free life in Asia? Yes, you can!
If you aim to live a tax-free life or nearly tax-free life, you need to understand the concept of “territorial taxation” as opposed to the more usual “worldwide income.”
Month: April 2021
Companies comparison and how politics affect them
A lighthearted look at the effect different political systems (and countries) have on the same situation – a tale of two cows.
How to register a company in Hong Kong as a Foreigner?
Does Hong Kong want your business? How to register a company in Hong Kong as a foreigner? and Can you open a bank account in Hong Kong?
Why it is often cheaper to pay consultancy fees
Why it is often cheaper to pay consultancy fees So you have decided to set up your offshore company. You think you know where to incorporate. You know how to form the company. Correct? Well, maybe. You did your research, you gathered all the information, and you think you possess the “know-how”. But do you know what you don’t know? In other words, are you aware of the things you did not even think about? The best way to illustrate what I am talking about is to give a working example. A couple of years ago, one of our clients set up a company in the Emirates – an IBC (International Business Company) incorporated in Ras Al Khaimah (RAK). His two main reasons for setting up the RAK company were: (1) RAK companies do not have a public register, so the names of the shareholders and directors are not available to public searches and (2) he did not have to file accounts. The client did not feel he needed our consultancy services. He decided a RAK company would be a good choice, and the company was formed. Then came the problem he had not thought about. His business was going to be fully ‘on line’, and he wanted to receive payments via PayPal… Fine, until he discovered that PayPal insists that the company and the bank account must be in the same country. Banks in the UAE are not opening accounts for RAK IBC’s (even now). The UAE bank turned him down. Therefore, the company was rendered largely useless for his purposes. The above example illustrates why we recommend clients to consider our consultancy services. We offer structuring advice based on your circumstances and your business plans. By ‘structuring advice’ we mean consulting you on choice of jurisdiction and whether it is suitable for your business, our advice on the most suitable bank/e-wallet, payment processor, general advice on setting up your business. Where do we start? First, we offer a 20 minute free – no obligation – consultation either by email or a scheduled call by Zoom or Skype. If you decide to go ahead with our structuring advice, we will go through your requirements step by step taking into consideration all the important aspects of your proposed business. We will then prepare and send you a detailed report for action or further discussion. In summary, you can save yourself time and effort as we will do the research for you, and we will recommend a practical and workable solution and structure.
Bank & e-Wallet – Which is less grief?
After establishing your new company, you will need to obtain banking facilities. This is where problems can begin. Banks are very heavily regulated, and this is reflected in their lengthy opening procedures. Typically, banks require 4 to 6 weeks to complete their compliance requirements. In all cases, the bank will require a business plan and a CV for each of the principals. Worldwide, banks generally require a face-to-face meeting, although we work with a small number of banks that do not require this. Banks will often not open accounts for companies based outside their borders. The solution can often be to open an e-wallet (also known as a digital wallet) account. E-Wallet providers are generally subject to less regulation than banks. They are much faster to open than bank accounts (sometimes the same day, usually within a few days). Digital Wallet providers rarely require a personal visit. Although there can be geographic limitations between the competing e-wallets, almost all jurisdictions and nationalities can be accommodated by one account or another (other than countries like North Korea, which are subject to UN sanctions). In broad terms, therefore, e-wallets are very much easier to open than traditional bank accounts. They are primarily operated as apps on a mobile phone and are designed to be convenient to use. do you have a problem with bank account opening for your hong kong company? Do you have a Hong Kong company but don’t have a bank account? Visit our e-wallet account packages specifically aimed at opening accounts for Hong Kong companies. Yes, I want to know more about e-wallet packages What are the advantages of an electronic wallet? E-wallets have other advantages compared to banks that include: – Zero or very low fixed maintenance fees. Low transaction fees, particularly in the same geographic area (EU, The Americas etc.). Frequently, attractive conversion rates between currencies are offered, along with the ability to maintain balances in a range of currencies. Cards (primarily Visa & MasterCard, but sometimes also Union Pay etc.) are usually offered. These typically are “pre-paid”, meaning that funds must be loaded from the e-wallet account onto the card as required. Some (but by no means all) e-wallets offer credit card processing giving you the ability to accept clients’ credit cards. In most cases, this is through a ‘shopping cart’ integrated onto your website, or ‘pay-by-link’, where a link is sent allowing the client to pay on the processor’s website. Fees can vary substantially between processors. What are the disadvantages of an electronic wallet? The downsides to e-wallets include the lack of guarantees should the provider fail – much depends on who regulates them and whether client funds are held in separated accounts (most are). Fintech is still a young ‘industry’, and this means frequent changes to the e-wallet landscape – companies come and go, and there are often changes to the terms and conditions within an existing company and at short notice. Probably, the solution is to open not one but two e-wallets – each specialising in a different aspect of your requirements. Once these e-wallets are operating, look at opening a conventional bank account for holding the bulk of your funds. Rate this article 5/5
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