Thinking of Using Hong Kong as an Offshore Jurisdiction

This is a jurisdiction that may have a few smallto reduce the possibility of money laundering , the
features regarding taxation but when it comes toHong Kong Monetary Authority ordered banks to
privacy it is most deficient.One disadvantage of Hongrecord whether Yuan deposits are made in cash, or
Kong companies is that annual financial statementsvia the conversion of other currencies. So they are
must be prepared, audited and presented to thewatching and recording the inflow of foreign
Government to prove that the company did nocurrencies, not good.It also urged the financial
business in Hong Kong and therefore owes no taxes.institutions to keep track of multiple accounts opened
Such statements must be presented within 18by the same customer, and to ensure that the
months of the date of incorporation. This is our20,000 Yuan per day exchange limit is not breached
opinion is grounds for finding a friendlierby spreading the transactions across several
jurisdiction.One has no idea where this informationaccounts.Note this exchange limit is about $2500.00
that you file is going to wind up. More troubledollars, fairly small and privacy invading.Hong Kong is in
follows:Directors and Shareholders are in both theMutual Legal Assistance Treaties read one with the
Government and Public record, note we saidUSA right here: Kong authorities can freely order
shareholders. No privacy here. There is nofinancial institutions to report customer identities,
requirement to report the Beneficial Owner to theetc.The Joint Financial Intelligence Unit can release
Government, if nominees are used but if he or sheinformation to foreign governments freely with the
wants to be a shareholder as one should, then theunderstanding that the information will only be used
privacy is gone out the window. No bearer sharefor investigations not as evidence which would
companies here.Another negative is that therequire additional requests for permission. This is just
company must have a Secretary resident in Hongred tape and will be approved. This is not a privacy
Kong, think more expense unnecessarily.There are nojurisdiction and we see no advantages to using Hong
anonymous bearer share corporations in HongKong.
Kong.Banking is not encouraging in Hong Kong.In order