Thought I’d just add to this in case anyone is searching and is wondering about the true cost of a Hong Kong set-up. I’ve just gone through all invoices and totalled it all up. All costs are in USD.
$1089 - Incorporation Costs with Registration / Secretary / Address
After 12 Months
$795 - Yearly Renewal / Secretary / Address Costs
$55 - Admin Fees for Director Resolutions to Withdraw Dividends
This isn’t too bad. But soon it begins to sting…
After 18 Months
$350 - Profit Tax Return Year 14/15 (NIL Value As < 18 months audit not required)
$1375 - Audited Reports with Profit Tax Return Year 15/16
$40 - Printing and Admin Fees
After 24 Months
$795 - Year Renewal / Secretary / Address Costs
$1375 (TBC)+ - Audited Reports with Profit Tax Return Year 16/17
$2500 - Offshore Profits Claim
The offshore profits claim is the biggest hit - the expense is for a tax advisor to justify it - but once it’s done it should be good for up to 5 years OR if your business nature changes.
And this is excluding the $40/month Xero subscription and all the hours of book-keeping and receipt collecting that goes with it.
Of course all these costs are variable. This is just my experience. I think my yearly audits are expensive, but I think the incorporation and renewal costs are relatively cheap by comparison.
If you can be approved on the Offshore Profits Claim and are making good money then after Year 2 things should be pretty nice I guess. But there’s definitely a whole bunch of costs in getting to that point that I’m not sure many people appreciate!