What Are The Differences Between Registered Mainland Companies And Hongkong Companies?

Because of the special historical conditions and geographical location of Hongkong, the mainland enterprises have created favorable conditions for outward development. Therefore, the establishment of a company in Hongkong can serve as an external window and easy to obtain trust and cooperation from foreign cooperative enterprises.

On the other hand, as China has just opened up, overseas investors like to set their regional headquarters in Hongkong as a springboard to invest in China.

At the same time, China can enjoy preferential policies for tax relief and exemption from foreign enterprises.

We all like to choose to register Hongkong company. What is the difference between this company and the registered mainland company?

Registered capital requirements of mainland companies

At present, the general trading companies have registered capital of 500 thousand, if the company wishing to register import and export rights is 1 million higher.

The registered capital of Hongkong company is at least 10 thousand HKD, and no capital verification is in place.

The mainland company needs a fixed office address. The Hongkong office does not need to have a practical office address in Hongkong. The registered address is only to contact the government.

On the tax treatment, the mainland company has to declare tax every month, with profit, income tax, value-added tax and business tax.

Hongkong company has no VAT and business tax, only profits tax is equivalent to domestic income tax. Its tax rate is 17 .5%. And if your business is in line with overseas profits, you can apply for tax exemption, so that you can not pay tax after filing tax.

The tax return period is very long. First tax returns are reported 18 months after the establishment of the company, and 1 times in 1.

This is also the biggest difference between Hongkong and mainland enterprises, and many friends use Hongkong company to see this.

Mainland enterprises can apply for domestic import and export rights. Hongkong companies are unable to solve the import and export rights of foreign companies.

After the establishment of the Hongkong company, it is still necessary to find the domestic agent export. However, the payment will no longer be written off to the mainland company, but will be pferred to the Hongkong company for the first time, and then pferred to the agent company.

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If it is just beginning to operate foreign trade, it can register Hongkong company, because at the bottom of the threshold, it can set up offshore accounts, and it will be convenient to use foreign exchange remittance later.

If the volume of business is large, we can reconsider the registration of domestic import and export rights, and the two companies will work together to solve different problems.