The Role Of Registered Hongkong Company In Developing Foreign Trade Business

With the promulgation of the new trade law and the liberalization of import and export rights, the pace of small and medium enterprises and natural persons entering international trade is accelerating.

But international trade is not as simple as buying and selling. It covers a lot of knowledge and fields, so there are also many risks.

The biggest advantage of small and medium sized production (trade) enterprises and natural persons in international trade is to grasp the information of products and foreign customers, and other complicated links do not have enough experience and manpower.

Looking for foreign trade companies to act as agents is the most important and the most economical way of foreign trade operation.

However, there may be a series of risks such as theft of trade residence, occupation of export earnings and so on.

1. Preventing trade information from being stolen.

Looking for foreign trade companies to act as agents, letters of testimony (or D/P, D/A, T/T) will first go through foreign trade companies, which is likely to be seen by other salesmen and Foreign Exchange officers of the letter of credit notification department.

Driven by interests, there is no guarantee that no one will use this information maliciously.

Once the information is stolen, it is very passive for the customers.

Moreover, no one can guarantee that a foreign trade company will always be used, and if there is any change, it will also affect the credibility of foreign customers.

Even if foreign customers are old customers, they will not be prized away, but with the increasingly fierce competition in international trade, China's profits will be less and less (for factories, customers and foreign customers).

And when the profit is low to a certain extent, the reduction of cost will have considerable attraction for either side.

At this point, if competitors (or customers' factories) steal your information and report lower prices to foreign customers, foreign customers may not be tempted to protect themselves.

Even if competitors do not take away your foreign customers, foreign customers will be able to bargain with you if they know that the price of others is lower than yours, which is also bad for you.

And through international trade in Hongkong or Off Shore Company, in the name of Hongkong (Offshore) company, signing a contract with foreign customers and accepting letters of credit in the Hongkong (Offshore) Company as the beneficiary, all trade information is controlled by you personally, so that trade information will be prevented from being stolen by others.

Two, avoid the occupation of foreign exchange receipts.

Looking for a foreign trade company as an agent.

The company's bank account.

Foreign trade companies are becoming more and more sluggish, and foreign exchange receipts may take place frequently. The first possibility is that foreign trade companies or other departments take up loans. The second possibility is that creditors of foreign trade companies (foreign trade companies are in a recession, debts outside are common), prosecuting foreign trade companies or forcibly deducting money; and the third one may be a credit bank withholding from foreign trade companies, which is more and more likely: the state will eventually push state-owned banks to market, and the premise of banks listing is to clear up assets and bad debts. Once banks clean up bad debts, it is inevitable.

The above three cases are fatal at any time. The goods are taken away by foreign customers, the goods are occupied or deducted, and they can not pay the factory's money, and the trade links are in the middle.

There may not be such a problem now, but this risk is bigger and bigger. Once it happens, it will be fatal for the middle trader.

The offshore trade operation method of Hongkong (Offshore) company can solve this problem completely: in the name of Hongkong (Offshore) company, negotiating documents at the Bank of its own control, whether it is spot or forward, or even foreign money coming back, is under the control of the Bank of its own company.

Suppose that when a trading company has a debt dispute, it can leave the foreign exchange in its own account for a period of time or to another safe bank account of the foreign trade company. After that, the RMB will be quickly pferred to the factory.

In foreign trade company accounts, it only takes one day (only one day's risk), which is much safer than the risk of being withheld at least one month before.

It is not even possible to pay the factory without paying the account of the foreign trade company directly by cheque endorsement.

Three, do not use capital to earn middleman profit.

There are both foreign buyers and suitable domestic manufacturers. There is no money. Manufacturers are unwilling to accept credit on credit only, and the middleman profits can only be abandoned.

Using Hongkong (Offshore) company can solve this problem: foreign buyers open letters of credit to your Hongkong (Offshore) company, and then you pfer the letter of credit to the factory.

It does not require a margin of money, but also can hide confidential information such as foreign buyers and prices.

Similarly, import trade is easy: the final buyer will open a letter of credit to your Hongkong (Offshore) company, and you will then pfer the letter of credit to the foreign seller.

Four, free pfer of foreign exchange funds, no foreign exchange control.

Free trade in foreign exchange is crucial to international trade, whether import or export.

But at present or for a long time, our country is still subject to foreign exchange control and is very inconvenient for trade in practical work.

While Off Shore Company is an offshore company, its foreign exchange account opened in China is an offshore account. In law, China does not consider it to be controlled by foreign exchange.

This offshore account is a free foreign exchange account, whether it is remitted or remitted; whether it is domestic or foreign, whether it is a company or an individual, foreign exchange is freely collected, and these three can be used intersecting each other.

The above is the overall concept, the specific advantages are as follows.

For exports, Off Shore Company can freely collect domestic and foreign commissions, pay marine and insurance premiums, facilitate the cancellation of tax rebates, etc. for export, Off Shore Company can not only freely pay domestic and foreign Commission, but also advance payment, import payment, opening or pfer of letters of credit, etc.

At present, tax refund is too slow for some foreign trade companies in some areas.

Because you have your own overseas company and you have sovereignty in your own hands, you can find out the foreign trade companies in those areas with fast export tax rebates.

If you already have the right to import and export factories for export cancellation, the tax rebate will be quicker. In fact, there is no tax at all.

(the state stipulates that the policy of "exemption from refund" should be adopted for direct export of factories, which is generally understood to be neither levy nor retreat).

Q: I want to rush to cancel the tax rebate, but I still have to wait for a while to get the money back abroad. So what should I do?

A few times ago, I had several votes to export, and the balance of the refund was less than the amount of export declaration, so that there were still many balances that could not cancel the tax rebate. Is Off Shore Company able to solve this problem?

Answer: no problem at all.

This is also the biggest advantage of Off Shore Company in the cancellation of tax rebates.

As you know, Off Shore Company's account in the bank is an offshore account. The remittance is free and free from foreign exchange control. As long as you have foreign currency in your account, no matter what time, no matter how many votes and amount you have, you can freely remit the foreign exchange to the domestic bank account and cancel the tax refund.

That is, it can be written off in advance, or the amount of the unwritten tax refund can be reissued.

China's domestic enterprises usually need to apply for quotas and a series of related procedures when they export products to developed countries such as the United States and Western Europe, which cost 12 times more.

At the same time, in order to protect the interests of their own enterprises, these developed countries often set restrictions on developing countries such as tariff barriers, anti-dumping, countervailing, green barriers and technical barriers.

If the company owns a Off Shore Company, exporting it from the enterprise to its own Off Shore Company, and then exporting it to the developed countries, it can circumvent the discrimination and restrictions of these trade and non trade barriers to a certain extent.

Seven, improve corporate image and credibility, facilitate the development of the international market, or expand the domestic market with international brands.

Eight, make full use of Off Shore Company to integrate the advantages of general trade, processing trade and processing trade.

Background knowledge: general trade is for processing trade.

It refers to the use of domestic raw materials and accessories to produce products directly exported to foreign countries or directly imported foreign finished products sold in the country.

Processing trade is characterized by raw materials and accessories from abroad, and processed products are also exported to foreign markets.

There are mainly two ways of processing trade: feed processing and incoming processing.

Importing processing enterprises need to raise their own funds to purchase raw materials and accessories from abroad, and then sell them to foreign markets on their own. Importing materials and exports are two separate pactions, and enterprises get profits from export products.

Processing trade is also known as processing and assembling trade.

The processing enterprises, namely the receiving party, do not have to pay the import material capital, and enter and export as the two aspects of a paction.

The ownership of the material and the finished product is owned by the foreign principal, and the enterprise obtains the processing fee, that is, the labor cost, but does not bear the risk of sale.

Blue Ocean Group (International) Co., Ltd. is headquartered in Hongkong. Its Shenzhen company is the headquarters of the group in mainland China. It is a professional service company with many years of business experience.

The company is composed of Hongkong certified public accountant, Hongkong practicing lawyer, senior business consultant and senior financial planner.

All members take the professional spirit to provide a professional overall solution for the internationalization of Chinese companies and the Sinicization of international companies.

Please call the toll free hotline immediately.

The senior consultant of Blue Ocean Group will provide the best plan for Hongkong company registration and bank account opening according to your actual situation.

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