International payment platforms (international payment solutions) for traditional business!

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International payment platforms emerged on the market not long ago. In the beginning we heard many questions like what it is? how it can be used? what is their difference with traditional bankers?


Please note! That in this article we are not going to review payment platforms related to cryptocurrency and stock exchange products, we shall not consider traditional payment gateways for online retailers as well. Here we mostly focus on traditional banking tasks, like international trading, international logistics and bank solutions with pure bank account for online retailers worldwide.


Since 2014 in the era of new global crises and new sanctions’ restrictions on businesses worldwide, banking industry has faced significant changes. Changes which modern people would hardly believe a decade ago. International and local regulators made decision to finish money movement freedom era, banking secrecy has become not an inviolable matter, new terms like banking risks, banking insurance and fines had appeared in business; as the result bankers started to close bank accounts of the clients where the risk of client’s operation they found not suitable for them, thousands of restrictions appeared for capital movement between countries, currencies and bankers. One of the results was the fact that banking account was almost impossible to open for some businesses and some passport holders. Secondly, one more important thing, which happened in 2020 was a global pandemic, which made visit to another country for bank account opening meeting almost impossible. Thirdly, electronic commerce was developing so fast, that traditional bankers couldn’t catch all the trends with new products launching. Grounds and features of these processes we may look more closely in other articles. It’s fantastically interesting.


But it’s really an interesting fact, that at the moment when it had become almost impossible to open bank account for some passports and businesses, solution appeared. And solution was payment platform. International payment platform – it’s financial organization, which has strong arrangement with the traditional banker or bankers and provide banking services to their clients by means of their partners, i.e. traditional bankers.


So what are the differences between international payment platforms and traditional bankers?


– Payment platform can use in its business process not only one banker, sometimes these bankers are in different parts of the world, thus payment platform may provide great possibilities in cross-border payments with different currencies.

– The base of payment platform is high-quality online platform, which should be easy-to-use, high-tech, and on-going developing.

– Usually payment platforms have more possibilities to accept more types of businesses and passport holders from higher risk countries. Sometimes it’s impossible to open bank account in a certain bank for certain type of business under certain passport holder as the beneficiary. But that may become possible in the payment platform which is using the same banker for their payments. It sounds untrue. But it’s really the fact. Furthermore, the major shareholders of payment platforms usually are traditional bankers, who really understand that they need more instruments and more space for development, which heavily regulated traditional banking sphere are not able to provide to them.

– More instruments for business operation. Some payment platforms have integrated systems for work with online retailers and online platforms, like Amazon, Ebay; some payment platforms have special conditions for currency exchange; some are specializing on financing some types of businesses, online retailers for example.

– Limit services of payment platforms. Of cause, payment platforms lack some services, which traditional bankers can provide. For example, they can’t accept and issue checks, work with letter of credit and so on. And the most important limit for some payment platforms, that they have to provide their company name to act as beneficiary and remitter for their client’s payment instructions.


It’s not the full list of all the differences between traditional bankers and payment platforms, but we suppose that those which are discussed above are the most important to consider. 


So what should the clients pay attention first of all if they consider to choose payment platform for their business?


– Jurisdiction. Of cause, you need to consider which jurisdiction the banker of payment platform is stationing. Some offshore jurisdictions may offer greater functions, but it doesn’t make sense if your partners neither can arrange payment there nor receive money from the jurisdiction.

– No doubt, that payment platforms which can provide their clients trustworthy payment instructions with beneficiary and remitter under client’s name, have great advantages to compare with the payment platform which can only show payment platform’s name as beneficiary and remitter. 

– You also should consider the payment route. Payment platforms which can provide clear payment route of correspondent well-known trustworthy banks in good jurisdictions for your payment routine have strong advantages for your business.


I would say that above criteria are fundamental while choosing payment platform for your business. After these criteria, you can continue to value other important things like: the possibility of opening account in the payment platform, banking commissions in operation, functions and usability of internet banking, currency exchange rates, possibilities of payment platform for financing your business, integrating it to your online business and so on.


This theme is very wide and actual. In future, we shall continue to introduce different payment platforms and their features as well as more actual subjects related to payment platforms.

And of cause, if you have questions on choosing and working with payment platform, we recommend you to seek for professional advice of CorpProm specialists.

Why company in Hong Kong is ideal platform for Amazon vendors?

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It’s clear information to most of us that recent years Amazon attracted thousands of suppliers from all over the world to its trading platform in USA and Canada, but also to some other countries, like Germany, and Mexico.

There’s nothing surprising about it, since Amazon offered the most valuable thing, it’s the biggest and the richest retail market in the world together with easy to understand and maximum transparent platform for work in the matter of logistics, finance and marketing. 

Many suppliers studying the work with Amazon trading platform question themselves with important issues. How to do business in this retail in legally and correct way, how to arrange profit return to their personal bank account, how to arrange payment to suppliers. It’s obvious that their home jurisdiction is often not the correct way to choose. Some country’s legislation doesn’t imply offshore business and has foreign currency restrictions.

We would like to recommend the work with Amazon using Hong Kong limited company. And there are many grounds for this. Let’s talk them in more details.

 

1. Registration of Hong Kong takes only one week. And there’s no necessity to come to Hong Kong.

2. Registration fee in general takes only 600 USD.

3.Total annual expenditures on limited company start only from 900 USD.

4. There are very little restrictions on nationality for limited company in HK. All restrictions are mostly related to companies in the UN sanctions list.

5. Jurisdiction in one legal field with China, and it’s easy to notice that most of real manufactures are in China.

6. Company in Hong Kong and retail business in Amazon provide rather reliable ways to open account in reliable financial system.

7. The English language is official language in Hong Kong, that’s why most of the law and requirements on accounting are easy to grasp.

8. It’s really easy to do accounting. Furthermore, it’s really hard to imagine more simple and more transparent requirement for accounting than in Hong Kong. The first accounting check starts only after 1,5 years from commencement day.   

9. Easy to understand taxation system and the lowest profit tax in the world. The only tax, which trading company with foreign employees need to pay is profit tax, which is only 8,5 % of net profit for companies with net profit lower than 4 million Hong Kong dollars. Furthermore, there are legal ways to lower the tax burden and the government usually annually supports the business with tax allowance.

10. The last and one of the most important things is existence of reliable partner in the name of CorpProm. And we are always here to support you in the questions of registration, company service and bank communication.

 

So dear colleagues, if you are already in Amazon or just thinking over Amazon system – limited company in Hong Kong with the reliable partner CorpProm – is the right option!

Notarize documents by High court in Hong Kong

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Many companies face the problem of notarization of documents at some point of work. In Hong Kong documents can be notarized in High Court, by public notary and by certified public accountant (CPA)/Auditor. This article will introduce the list of documents that can be apostilled by High court.

A document can be apostilled (type of legalization) by High court and thereby will have a legal force. Meanwhile Notary and CPA confirms the authenticity of signatures, documents, etc.

An apostilled document can be as follow further. Please note that no any documents are accepted by the High Court o

Hong Kong. For verification the original document must be provided.


  • Marriage certificate
  • Certificate of Absence of Marriage Record
  • Certificate of Registered Particulars
  • Birth and Death Certificate
  • Business Registration Certificate
  • Certificate of Incorporation
  • M&A

Our colleagues will clarify what documents can be certified and the best price offered.

Virtual Banking in Hong Kong

Information technology has spread through all areas of our life and influenced virtualization of bank sphere.

Traditional banks aren’t as mobile as virtual banking which can offer a new kind of services in banking and satisfy the needs of different groups of clients. The main feature of this banking is working only through Internet without traditional branch office and some operate only mobile app.

From the moment of opening the 1st virtual bank in the world “Security First Network Bank” passed 22 year. Only in 2017 year in Hong Kong was announced about intention to begin “A New Era of Smart Banking”. In 2020 year already 8 virtual banks has begun its work: ZA Bank Limited, Airstar Bank Limited, Ant Bank, Livi Bank Limited, Fusion Bank, Mox Bank Limited, Ping An OneConnect Bank, WeLab Bank. Za Bank Limited is the first virtual banks in Hong Kong launched an opportunity to issue a debit cards for new clients, and also started new foreign incoming payments.

Hong Kong Monetary Authority (HKMA) expects that virtual banking development will help to promote high technology and innovation not only in this sphere. The focus is on local business, mostly personal banking, but corporate services for SME are becoming more and more popular.

Our company will help to understand the specifics of opening bank account in Hong Kong and China.   

Profit tax in Hong Kong

This article is about features of the profit tax in Hong Kong


1. The Hong Kong tax system is based on the territorial principle. If the company’s profit is originated from outside Hong Kong, there are legal ways not to pay corporate tax in Hong Kong. Income from foreign sources is not taxed, even if it was moved to Hong Kong. Anyway there are corporate bodies who prefer to become tax resident of Hong Kong, even if they are working outside, mostly because of low profit tax and easy to follow tax policy.

2. Legal entities that make business and profits on the territory of Hong Kong must pay income tax in Hong Kong on a regular base. It also applies to other jurisdictions that are registered as tax residents in Hong Kong. There are some minor details that can be stipulated as activity in Hong Kong or activity outside Hong Kong.

3. The company’s loss is accumulated for over a period of 5 years, and income tax will be accrued only after company’s full repayment of its loss.

4. In Hong Kong the corporate tax is progressive. Currently, the standard rate of corporate tax in Hong Kong is 16.5%. The tax rate for small corporations with income is less than 4 million GK dollars, the tax rate is only 8%. This is almost the lowest income tax rate in the world.


Our company helps to understand all the features of taxation in Hong Kong and can be tax agent between corporate body and Inland Revenue Department.

Public Bank Holidays for 2020

Dear Colleagues!

2020_Public_Holydays – you can download the document which marks all public holidays in USA, Hong Kong, China in 2020.

This information is valuable for those who work with international finance daily. You can plan your remittances more precisely utilizing it in your daily operation!

Office hours of CorpProm during New Year Holidays 2019

Dear Valuable Partners, please note that our offices in Guangzhou and Hong Kong will be closed as below schedule: 25, 26th Dec 2018 and 31st Dec 2018 up to 4th Jan 2019. Please take it into consideration while planning your work. We wish you a Marry Christmas and a Happy New Year! Wish you Good Luck, Prosperity, Health and Happiness for the coming year!

Public Bank Holidays for 2019

Dear Colleagues! 2019_Public Holiday_ENG – you can download the document which marks all public holidays in USA, Hong Kong, China in 2019. This information is valuable for those who works with international finance daily. You can plan your remittances more precisely utilizing it in your daily operation!

Inland Revenue department

Dear Partners!

We found an interesting case recently happened and published by Inland Revenue department, that we would like to share with you.

Background

(a) Company A, Company B and Company C (collectively referred to as “the HK Companies”) are companies incorporated in Hong Kong. Their respective parent companies and common ultimate holding company are incorporated outside Hong Kong.

(b) The HK Companies are principally engaged in property investment. They collectively own a commercial building for long-term investment and letting purposes.

(c) The Group, of which the HK Companies are members, adopts a sole ownership holding structure where one property holding company holds the entire interest in one property. In order to standardize property holding structure, and enhance management and operational efficiency, the Group has planned to amalgamate Company B and Company C horizontally into Company A (“the Amalgamation”).

The arrangement

(a) Company B and Company C will be amalgamated into Company A by 30 June 2017.

(b) The Amalgamation is governed by the amalgamation provisions in Division 3 under Part 13 of the Companies Ordinance (Cap. 622). The legal effect of the Amalgamation on and after the effective date of the Amalgamation includes:

(i) Company B and Company C cease to exist as entities separate from Company A;

(ii) Company A succeeds to all property, rights and privileges, and all liabilities and obligations of Company B and Company C; and

(iii) Any agreement entered into by Company B and Company C may be enforced by or against Company A.

(c) After the Amalgamation, Company A, as a sole owner, will principally and solely engaged in the rental business of the entire building.

Source : The Government of the Hong Kong Special Administrative Region Inland Revenue Department Advance Ruling Case No. 62 dated 22 August 2017