It is worth for you to consider forming a company in Hong Kong especially if you are engaged in trading business in Asia. The jurisdiction of Hong Kong has the following major benefits:
Small and medium-sized corporations and individuals can enjoy the privileges of large multi-national corporations by setting up their companies and bank accounts in Hong Kong and reducing their taxation expenses.
After you set up your company in Hong Kong, it is not obligatory for you to stay physically in Hong Kong while you can have remote control over your Hong Kong company. You do not need to employ any staff or rent an office. Your operating costs are reduced substantially while you can enjoy the benefits brought to you by the Hong Kong company.
One of the most substantial benefits of Hong Kong company is taxation which is among the lowest in the world, and the simplicity of the tax system. There is no capital gains tax, no withholding tax on dividends and interest, no collection of social security benefit, no sales tax or VAT, the estate duty will be abolished this year. Profit derived from offshore business is exempt from tax as well. For a trading company, offshore business refers to goods sourced outside Hong Kong, such as China, Korea, Japan, Taiwan, etc. and shipped directly to overseas countries such as USA, Europe, Australia, Middle East, Africa, and vice versa. If your business is of this kind, you can easily obtain tax benefits by booking such transactions in your Hong Kong company.