Common Investment Mistakes in Hong Kong A presentation brought to you by OpenCompanyHongKong.com

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Common Investment Errors in Hong Kong

Not having a defined investment plan; Not knowing the double taxation treaties; Not knowing the tax minimization

strategies; Not knowing the contractual law in

Hong Kong; Omitting due diligence in Hong Kong; Not knowing the investment regulations; Not knowing when to pay taxes in Hong

Kong.

• Some of the common investment mistakes in Hong Kong are the following:

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Not Having a Defined Investment Plan

• A good investment plan, combined with a solid portfolio and a fail proof strategy is what would help most investors in Hong Kong.

• One common mistake is to not plan ahead and set a time-frame for growth, possible risks and possibility to invest more assets in the future.

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Not Knowing the Double Taxation Treaties

• As many other countries in the world, Hong Kong has signed numerous double tax treaties that strengthen its economic relations and bring benefits for foreign investors.

• These agreements offer preferential withholding tax rates and apply for tax residents of one or both countries.

• The tax regulations are available for both natural persons and legal entities.

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Not Knowing the Tax Minimization Strategies• Another common mistake investors

usually make is not knowing the tax minimization strategies that are being used in Hong Kong.

• Tax minimization is the legal practice of reducing the tax amount due to the state.

• Our team of company formation representatives in Hong Kong can provide legal advice in this sense.

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Not Knowing the Contractual Law in Hong Kong

• Contract law is important in cross-border transactions.

• Entrepreneurs who sign contracts in Hong Kong with other individuals or companies have to pay attention to the law governing the respective agreement.

• This is also available for employment contracts in Hong Kong, which have to respect a set of specific regulations.

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Omitting Due Diligence in Hong Kong

• Company due diligence is important when entering into a business relation with another legal entity and even when signing contracts.

• The procedure is most useful when company mergers and/or acquisitions take place.

• Buyers can also perform a real estate due diligence before concluding the final agreement with the seller.

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Not Knowing the Investment Regulations

• Before entering the local market, investors should study which are the most attractive investment fields.

• This will allow them to set realistic targets for their business in Hong Kong.

• Our team of company formation agents in Hong Kong can offer more details on this matter.

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Not Knowing When to Pay Taxes in Hong Kong

• It is also important to know when to pay the corporate taxes and when to comply with the requirements of the relevant authorities.

• If such deadlines are not respected, the company can be fined.

• Businesses in Honk Kong must pay the corporate tax, the withholding tax and others.

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Consultancy Services in Hong Kong

• Our Hong Kong company formation specialists can offer assistance for any aspect of the incorporation procedure, as well as on the corporate taxation system available here.

• Please contact our team of company formation consultants in Hong Kong for more details.

Thank you for your attention!

• For more information please contact us at:

(+44)203-287 0408 (for international clients)

office@lawfirmhongkong.com

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