| Hong Kong – Hong Kong offers Anonymous | | | | The corporation is formed in Hong Kong, the lawyer |
| Corporations, Bank Secrecy, No Tax Information | | | | is in Hong Kong, and the bank account is in Hong |
| Exchange Agreements, No Tax on Offshore Derived | | | | Kong so this structure is all legal and fully enforceable |
| Income, No Capital Gains Tax, Stock Brokerage | | | | in Hong Kong which is the only jurisdiction that |
| Accounts at the Bank, A Bank with One Trillion dollars | | | | matters in this scenario since everything is located |
| in Deposits, Online Banking, Credit Cards, Accounts in | | | | there. This structure makes it impossible to look up |
| 10 Currencies including Chinese Renminbi, Unlimited | | | | the name of the owner of a corporation filed using |
| Government Bank Insurance, and you do not have to | | | | this trust arrangement. A nominee director, |
| go to Hong Kong to have bank account opened. The | | | | shareholder and founder are used whose name does |
| features and benefits of using Hong Kong are | | | | appear in the public registry but these persons do |
| extensive. The material contained below is in depth | | | | not know you at all. You wind up with an anonymous |
| and was written for a sophisticated investor client. | | | | corporation and have all the controls plus you control |
| We are eager to answer any questions you may | | | | the bank account. |
| have, just inquire | | | | Hong Kong Taxes – Hong Kong does not tax |
| Hong Kong Banking – We have now made it | | | | offshore-derived income. There is no VAT tax. No |
| possible to open up corporate bank accounts in Honk | | | | withholding taxes. No annual net worth taxes. No |
| Kong without a need to visit Hong Kong (no personal | | | | accumulated earnings taxes for retained versus |
| accounts please). Hong Kong today is one of the | | | | distributed earnings. There is no capital gains tax on |
| best private offshore tax havens in the world. They | | | | bank interest or stock market investments. You can |
| have not signed any Tax Information Sharing | | | | have an office in Hong Kong and still receive money |
| Agreements and have world-class banks. Hong Kong | | | | from offshore and have it tax exempt. Unless you |
| does practice tight bank secrecy with serious criminal | | | | conduct business inside of Hong Kong like having a |
| and civil penalties for any bank personnel who | | | | pizza store there, you will not be paying any Hong |
| violates such bank secrecy laws. Hong Kong is | | | | Kong taxes. It is a true offshore privacy and tax |
| actually a world-banking center like Switzerland used | | | | haven. |
| to be. It has at least 100 times more bank deposits | | | | Hong Kong Corporation Tax Return Filing – One |
| that countries like Panama, 69 of the world’s | | | | small disadvantage to Hong Kong Corporations is that |
| largest 100 banks, and a total of more than 1300 | | | | an annual tax return must be filed at the end of each |
| bank branches in the territory. | | | | year. If the person is not conducting business in Hong |
| The Hong Kong Bank We Use – The bank we | | | | Kong, there is no obligation to complete the return |
| open our clients’ accounts for in has well over | | | | but as a matter of expediency and maintaining a low |
| one trillion US dollars in assets. It is a massive, quality | | | | profile, the return should be filed with the HK Inland |
| bank by any standards. It has no legal ties with any | | | | Revenue with a brief explanation as to why the |
| bank located in other countries as to avoid coercion | | | | corporation is not carrying on business in Hong Kong. |
| by an opposing party using the banks with the same | | | | This is something the accountant will do for you. |
| name in other countries to affect this. Various | | | | If a person is carrying on business in Hong Kong but |
| countries have done such things in past. No worries | | | | has no profits subject to tax because all their income |
| with this bank. This bank is authorized to issue bank | | | | was deemed to be offshore derived, that person |
| notes for Hong Kong. | | | | should file a tax return with all the relevant |
| The bank has full online banking including the ability to | | | | attachments, which should also include a detailed |
| launch online wires, check balance and history, switch | | | | explanation as to why each source of income is not |
| from one currency to another, move money from | | | | considered to be taxable. This is usually as simple as |
| one account to another, etc. The bank offers | | | | stating it is offshore derived income from sales |
| accounts in 10 currencies: Australian Dollar, Canadian | | | | commissions, sales of property, brokerage fees, |
| Dollar, Euro, Japanese Yen, New Zealand Dollar, Pound | | | | earnings for work conducted outside of Hong Kong, |
| Sterling, Singapore Dollar, Thai Baht, US Dollar, and | | | | etc. This is to show that there was no onshore Hong |
| Renminbi (Chinese Ruan). One statement will show | | | | Kong income derived for which taxes are owed. If |
| your holdings in any or all of these currency accounts. | | | | there is no activity in the corporation a return can so |
| You can get assigned a private banker with an | | | | be filed showing no business activity. Again the |
| account of $150,000 or more and then you can also | | | | accountant will do this for you. |
| use Swiss Francs for banking in addition to the other | | | | If the business has not yet commenced then the |
| 10 currencies. You can buy CD’s in the bank. | | | | company can just file a negative or nil tax return and |
| Rates will usually not be over 2% per annum on USD | | | | technically it can even not file but later on this could |
| deposits, generally lower for most other currencies. | | | | be questioned by Hong Kong Inland Revenue so we |
| We have banks in other countries with higher rates | | | | suggest doing a simple filing. Again the accountants |
| and we also offer anonymous bearer bonds paying | | | | will do this for you. The lawyer we use to form the |
| 8.5% from other countries. Hong Kong is for privacy | | | | corporations in Hong Kong has certified accountants |
| and security, not high bank interest rates. Another | | | | in Honk Kong on staff who will do the annual filing for |
| consideration is access to a Hong Kong stockbroker | | | | you and it is already included in the fee. You just |
| that can provide you with investment opportunities | | | | supply the data to them and they will do the rest. If |
| paying significantly higher yields. | | | | you are going to conduct a real business venture |
| Hong Kong Bank Security – Once you are the | | | | using the Hong Kong Corporation and Hong Kong |
| signatory on the bank account no other signatories | | | | bank account then you will need to file a real tax |
| can be added or and it is impossible to remove you | | | | return even if the company had no onshore income. |
| as a signatory without your written consent. Having | | | | There will be no tax due but a filing is necessary and |
| share certificates for the corporation is not enough | | | | the cost of the filing is included in the price. |
| to change the signatories at the bank. Nominees are | | | | If you have a serious business it will be incumbent |
| unable to effect a change at the bank for the | | | | upon you to have the books and records prepared |
| signatories. No additions or deletions of signatories | | | | independent of our accountants who are just going |
| without the written consent of the existing | | | | to prepare the filing for you, they are not going to |
| signatories. No changes at all without this. Any | | | | be your accountants or bookkeepers in general. If |
| attempt would be accepted by bank with their ID in | | | | you are just going to use the corporation and bank |
| a pending state. Then bank would contact you for | | | | account for savings or holdings then there really |
| written permission. You say “No way, I knew | | | | isn’t much of anything to file and the accountant |
| nothing about this.” Then they go to jail. Hong | | | | will do it for you. Feel free to ask questions. It |
| Kong banks are very used to nominees and | | | | sounds more complicated than it really is. For many |
| understand how to protect the owners/signatories of | | | | of you it will be as simple as telling the accountant |
| the bank account. No worries. | | | | the corporation has not engaged in any business for |
| Hong Kong Bank Insurance – This is Hong Kong | | | | the tax year and then forgetting about it. |
| government-backed bank insurance. This measure is | | | | What Is Included With the Hong Kong Corporation - |
| in place until the end of 2010, which can be extended | | | | I) Certificate of incorporation |
| at the option of the government. It was already | | | | II) Business registration certificate |
| extended once, after first being put into place to | | | | II) Original formation documents and minutes |
| reassure depositors during the worldwide financial | | | | IV) Minute booklet |
| crisis. The government is backing all bank deposits to | | | | V) Share certificate booklet |
| any amount. The insurance covers HK dollar accounts | | | | VI) Two chops and a seal (a chop is a corporate |
| and all foreign currency accounts such as USD, Euro | | | | stamp, not a tool for eating with) |
| etc. There are certain types of specialized accounts | | | | VII) One certified copy of formation documents |
| not covered, which are listed as follows: | | | | VIII) Appointment of corporate secretary for a year |
| CDs or time deposits with a term in excess of five | | | | providing a registered office address for a year. This |
| years, secured deposits, structured deposits like | | | | address can be used for mail and courier receiving of |
| equity linked accounts, bearer instruments like a | | | | documents but does not include forwarding or |
| bearer certificate of deposit (does not affect | | | | receiving of parcels. |
| corporation having bank accounts that are bearer | | | | IX) A box to contain all papers in. |
| share corporations). The insurance does not cover | | | | In addition, to keep the corporation anonymous there |
| stocks, bonds, mutual funds, insurance policies, or unit | | | | is included a private trust agreement for nominee |
| trusts bought and held by the bank. The funds for | | | | shareholder, director and founding member so the |
| immediately (immediately is the word Hong Kong | | | | owner is not registered in the public registry yet still |
| uses) compensating depositors come from a standby | | | | has all the control over the corporation while |
| credit facility provided by the Hong Kong SAR | | | | remaining anonymous. This trust agreement also |
| Government’s Exchange Fund. So the deposits | | | | includes a General Power of Attorney executed by |
| are insured up to any amount until at least the end | | | | the nominees. The firm in Hong Kong will also file |
| of 2010 and the deadline will most likely be extended | | | | your annual return for you at no additional cost. |
| again until the world financial crisis is over. | | | | Using the HK Corporation for Bank Accounts in Other |
| Hong Kong Bank Credit Cards – The bank will | | | | Jurisdictions – To use your Hong Kong |
| issue you a secured Visa or Master card. The card will | | | | Corporation in a country other than Hong Kong for |
| have to have your name on it. You cannot not get a | | | | opening a bank account or a stock brokerage |
| corporate name only card. They do not issue | | | | account there is an extra fee of $800. Why this fee? |
| anonymous cards. The cards are secured by a | | | | The Hong Kong lawyer will need to issue a full set of |
| deposit exceeding the credit line of the card. The | | | | notarized and apostilled corporate documents. These |
| bank is not going to extend to you a line of credit. If | | | | documents need to also be approved and signed off |
| you want a card limit of $10,000 the deposit will be | | | | on by the High Court of Hong Kong. This is the |
| $12,500 typically. This depends on what currency the | | | | reason for this extra fee if you wish to use the |
| card is in, if you are a private banking client, etc. This | | | | corporation to open a bank account or stock |
| bank has at least 10 different card programs. | | | | brokerage account outside of Hong Kong. |
| Bank in Renminbi or Chinese Yuan – With this | | | | Attorney Client Privilege - The formation of the Hong |
| Hong Kong bank you are able to bank in Chinese | | | | Kong Corporation is done by a Hong Kong lawyer so |
| Renminbi also called the Yuan. You can even get a | | | | attorney client privilege flows through the entire |
| checking account in this currency. You can hold this | | | | transaction from start to finish. |
| currency in your account. Much business in Hong Kong | | | | Due Diligence – What is needed is a notarized |
| is now conducted in Renminbi. You can have time | | | | copy of a passport and driver license. We also need |
| deposits in this currency. You can even get a credit | | | | a utility bill for proof of address. This has to be a |
| card in this currency which is really only going to | | | | working address that can receive correspondence. |
| work in Mainland China but they do have 370,000 | | | | You can tell the bank to hold your statements and |
| merchants and 60,000 ATM’s taking this card. | | | | not send them but some things like signature cards, |
| This card is going to grow, this is the beginning. | | | | online banking forms etc will need to be send |
| You can move up to 80,000 Renminbi a day to an | | | | physically by courier. |
| account in Mainland China, if you happen to have a | | | | There is no bank reference letter required. In some |
| bank account in Mainland China. This is the Chinese | | | | countries banks will not issue a bank reference letter |
| currency that is being used to clear international | | | | any more. In other countries a bank reference letter |
| payments but it is not yet fully convertible at this | | | | is considered to be a “suspicious transaction” |
| time. It is just starting so you are getting in on the | | | | and is reported to the authorities as such because it |
| ground floor. To truly diversify your currency holding | | | | means an offshore bank account is being opened. |
| portfolio hold Renminbi. The Renminbi will soon | | | | Banks inside the same country rarely require a bank |
| become a fully convertible currency and then | | | | reference letter. |
| probably soar in terms of exchange rates. It is | | | | Time Frame – It takes 2-3 weeks to form a |
| expected that the Renminbi will soon have its own | | | | corporation and have the bank account opened for it. |
| wire transfer facilities clearing in China or Hong Kong | | | | The time clock starts ticking when we have an order |
| and it is doubtful that the USA will have access to | | | | form, notarized ID documents, Utility bill and payment. |
| view or affect these wires. | | | | Hong Kong Shelf Corporations – We have a |
| Stock Brokerage Accounts – The bank has a | | | | reasonable supply of shelf corporations on hand. This |
| stock brokerage division. Online platform and full | | | | speeds the process up by a week or so but then |
| service. Play the major markets around the world | | | | you have to accept a name you did not chose. Not |
| USA, UK, Canada, Japan, Hong Kong, China, Australia). | | | | suggested for those operating a business but can |
| Bonds, options, futures, forex, and equities – | | | | work for those in a hurry who just wish to use the |
| everything including margin accounts. You can also | | | | account for savings or as a holding entity. Shelf |
| open up a European stock brokerage account | | | | corporation fees are the same. |
| through us using your Hong Kong Corporation as the | | | | Cost – The fee for the Hong Kong Corporation |
| vehicle if you wish access to other additional markets. | | | | complete and the opening of the Hong Kong Bank |
| If you are an American or Canadian citizen or | | | | Account without coming to Hong Kong in the |
| resident you can have a bank account in Hong Kong | | | | above-described bank is $7000. This is paid by wire |
| BUT NOT A STOCK BROKERAGE ACCOUNT AT | | | | transfer. We do not take credit cards. The minimum |
| THIS BANK. This policy is to avoid some new tax | | | | deposit at the bank is $1000 and should be included |
| withholding laws. We can however get you a stock | | | | along with the wire for the professional fees. |
| brokerage account at another stockbroker in Hong | | | | How to Order – First step is to fill out our online |
| Kong with an online platform that allows trading | | | | order form. |
| major markets in the world. This will require an extra | | | | Next send us by email a scan of the notarized copy |
| whole set of certified documents approved by the | | | | of the passport and driver license plus a utility bill |
| HK court so we must charge an extra $800 for this | | | | showing your real address. This can be sent by email |
| service if you are unable to get a stock brokerage | | | | as an attachment to: |
| account at the bank. When you sue the same bank | | | | If the documents are correct and acceptable we will |
| for the stock brokerage account there is no extra | | | | then provide courier directions to send hard copies. |
| staff time or need for an extra set of paperwork. | | | | Next we will send you coordinates to wire the fee to |
| Anonymous Hong Kong Corporations – Hong | | | | us. |
| Kong Corporations are basically private limited | | | | After the fee is received we will begin forming the |
| companies being very private and limiting liability for | | | | corporation. After the corporation is formed we will |
| shareholders. There is no paid in capital requirement. | | | | begin the bank account opening process. |
| It is possible to get a corporation formed in Hong | | | | Bank forms, signature cards will be sent to you by |
| Kong that is anonymous. Your name as the owner | | | | courier with the corporate documents included and |
| will not appear in any public registry or database. If | | | | you will have to execute the bank forms and return |
| the client desires to be an anonymous owner of the | | | | to us by courier. When the forms are returned the |
| corporation he can do so with a trust arrangement | | | | bank account will be opened several days later. |
| having the trustee (the Hong Kong Lawyer) hold the | | | | The online banking will come after that requiring 7-10 |
| shares for him (as a beneficiary) and the client holds | | | | additional days after account opening. Credit Cards |
| the trust deed, which is conclusive proof of him being | | | | require a security deposit and take about two weeks |
| a real owner of the shares. This trust law and | | | | after the account is open, and the deposit is |
| arrangement is valid and lawful in Hong Kong. | | | | received. |