Mr. A want to invest an property in Hong Kong at the cost of HKD4,000,000. And he would like to resell this property at HKD5,000,000. In the Tax Ordinance in Hong Kong, stamp duty is required for transferring property. And the tax rate is approximate 3% for Hong Kong Citizen and 6% for non Hong Kong Citizen. For the case of Mr. A, if he is HK citizen, he will required to pay HKD150,000 for stamp duty and HKD300,000 if he is not Hong Kong Citizen.
Our suggest arrangement
Mr. A can use a Hong Kong company to own the Hong Kong Property. And during he sold the property, he can just transfer the share of Hong Kong company. The cost of paying stamp duty is be much lower with only 0.1% required as per below:
Benefit of our suggestion
A cost saving for stamp duty for a Hong Kong Citizen will be HKD145,000 and HKD295,000 for non Hong Kong citizen.
Company A is doing trading business with sourcing products from Company C in China and sell to Company E in Europe.
The product is directly shipped from China to Europe. Then the bill of Lading will show up the Company C as shipper, and Consignee as Company E and notify parties as Company A. While the end customer and supplier information is found in the bill of lading and Company A may lost her end customer as Company E can directly communicate with Company C for the business.
Our suggest arrangement
Company A can set up a Company H in Hong Kong. Company H & Company A will be the middle agent to split the up the connection of Company C & Company E and the product will remain direct shipment from China to Europe. The only disadvantage will be more administration work to change the Bill of Lading.
When the products shipped out from China, the Bill of Lading will show up as:
Shipper: Company C
Consignee: Company A
Notify Party: Company H
Then the Bill of Lading will change before the cargo arrived Europe as below:
Shipper: Company H
Consignee: Company E
Notify Party: Company A
Supplier only have the information of Company C and Company E is totally separate and not easy for supplier direct deal with end customer.
They helped me a lot in establishing company in HK and then opening RO in China. Since I’m living in Guangzhou and doing source business, Representative office helped me to hire people legally, to maintain my business legally in China and make employment visa for my permanent stay in Guangzhou. They professional approach and care are always to help. Thanks! I really recommend them as reliable partner!
I would like to thank guys from Asia Corp Prom. I had problems with my banker all the time in Hong Kong, different checks and didn’t know how to reply, they professionally helped me to prepare accounting and my workflow for correct communication with banker HSBC. Now they are my contact persons in the banker, really helpful and I can concentrate on my business, not just on bank checks and reviews. Charges are really low, but really helped. Thanks! Really recommend that they are professionally know the banking industry in China and Hong Kong, which is really essential for business development.