Hong Kong, as a duty-free port for free trade, has natural advantages that the mainland does not have. Mainland enterprises can greatly expand their access to the international market through Hong Kong companies, and at the same time reduce their labor and operating costs. Imports, including maternal and child products, cosmetics, food, etc., are sold to the mainland to meet the annual demand for several trillions of online imported goods, which is a huge business opportunity.
With the increasing frequency of international exchanges, more investors choose to conduct cross-border e-commerce for international trade. Hong Kong, as a free trade port, has no trade barriers, and is a powerful springboard for mainland enterprises to enter the international market. So how? Use Hong Kong companies to maximize the benefits of cross-border e-commerce business?
Advantages of registering a Hong Kong company as a cross-border e-commerce company
As the technical foundation of trade globalization, cross-border e-commerce has very important strategic significance. It is very beneficial for not only the development of the international economy, but also the sales of individual products of enterprises.
1. The operating cost of Hong Kong companies is low: the cost of registering a Hong Kong company is much lower than that of registering other offshore companies. Hong Kong allows shell companies to exist without leasing an office in Hong Kong. The maintenance of the Hong Kong company is simple and the cost is extremely low.
2. Convenient and fast domestic replenishment and stocking: Hong Kong is a global free trade port, logistics and freight can freely enter and exit, and general goods are not subject to customs duties. It has unique advantages in warehousing. In cross-border e-commerce, it is indispensable to import goods from abroad. At this time, Hong Kong's geographical advantage is close to my country's Guangdong Province, which can play the role of convenient and fast domestic stocking.
3. E-commerce returns and exchanges are convenient: Doing foreign trade e-commerce will often cause returns and exchanges, but if the goods are returned to foreign countries and then shipped in, it is not only time-consuming but also labor-intensive. Now e-commerce is generally returned in Hong Kong. And foreign suppliers will directly ship the goods to Hong Kong, which is convenient for return and exchange operations.
4. Hong Kong is well-known: When it comes to cooperation with foreign companies, many foreign suppliers may not know a certain domestic trading port, but they will not be unaware of Hong Kong. Hong Kong has a high reputation in the world's shopping malls. As long as Hong Kong companies give people a reliable image, they can bring more opportunities for cross-border e-commerce work.
5. The collection and receipt of foreign exchange are both free: With the expansion of cross-border transactions by sellers, foreign exchange control has become a problem that we have to face. Therefore, in practice, more sellers and friends use offshore accounts to deal with foreign exchange collections, but if they want to have their own offshore accounts, they must first register a Hong Kong company. As an offshore company, a Hong Kong company is allowed to conduct offshore business operations in the mainland. It can be operated through an offshore bank account. Funds can be freely transferred in and out, and various foreign currencies can be exchanged and mobilized at any time, which is very convenient.
6. Integrate e-commerce supply chain: It can gather goods from multiple countries for distribution, inventory management, and send them to various regions of the mainland according to customer orders. This means that it can be a transit center for cross-border e-commerce, and all goods sent to China can be gathered in Hong Kong, which integrates the upstream and downstream supply chains of e-commerce as a whole.
7. Convenient tax policy: Because Hong Kong companies have no occupational constraints, they create infinite possibilities for conducting business in the e-commerce industry. The most important thing is that there are few corporate taxes in Hong Kong, which are profits tax and salaries tax. At the same time, Hong Kong is a transit port, and most goods are exempt from import and export, which can save a lot of tax costs for cross-border e-commerce enterprises.
The "temperament" of cross-border e-commerce is very in line with Hong Kong's offshore profits tax exemption. As a very good tax planning tool, sellers generally apply to the Hong Kong Inland Revenue Department for offshore exemption, so that they do not need to pay profits tax in Hong Kong.
Information required to register a Hong Kong company
1. The name of the company (must have an English name);
2. One shareholder or more (must be at least 18 years old);
3. One director or more (must be at least 18 years old and can be the same person as the shareholder);
4. Number of shares: at least one, all issued shares are deemed to have been paid;
5. Registered address (the address must be in Hong Kong, our company can provide multiple business addresses for guests to choose);
6. Legal secretary (Hong Kong company law stipulates that a limited company must appoint a legal secretary, and the legal secretary must be a Hong Kong citizen/permanent resident/legal person, which is provided by our company.);
7. Register of Significant Controllers: A register must be kept at the company's registered office or somewhere in Hong Kong. The Significant Controllers Register may be kept in hard copy or electronic form;
8. KYC form, proof of address within the past three months, front and back of the personal identification (ID) card of the director and shareholder, holding an ID photo.
