|
In this issue of China Briefing we have invited a number of other professional firms to provide concise overviews of the most popular locations for holding investments into China. However, the offshore incorporation industry is large, highly competitive and exceedingly diverse. Many of the other jurisdictions available are also suitable for holding investments, however some are better choices for the China aspect than others. The British Virgin Island(BVI) for example have long been the most popular location for holding offshore investments, yet it’s position as a non-sovereign entity creates additional administration costs - which can be quite expensive – when dealing with China. Also, given its reputation specifically as an offshore centre, Chinese authorities can be reluctant to issue business licences for BVI entities for long periods. Put simply: jurisdictions that are not sovereign states and which do not have direct diplomatic relations with China can prove awkward to use in the PRC. That inexpensive incorporation may not be that attractive when all the additional administrative costs and charges have to be added on. Therefore, for such reasons, we have chosen to highlight the most suitable jurisdictions for use at this present time: Mauritius, and it’s highly effective double tax treaty with China; Singapore, with recent legislative changes making it an attractive place to park repatriated profits; Hong Kong, for much the same reason an it's obvious proximity to China; and tiny Macao, whose own offshore incorporation industry has very recently undergone new legal changes focusing the scope of its activities towards IT, research and administrative support services. Other jurisdictions – such as Delaware in the United States - are also highly popular and may be considered by your corporate structuring team, especially by American businesses. But right now, in an ever – changing and intensely competitive industry, we feel the four locations we feature are the most suitable for holding your PRC investments.
|
