B.String Business Consulting Ltd.

Success Story Using Hong Kong Company about Taxation Lower tax rate in Hong Kong No tax in Hong Kong - Offshore operation tax exemption Trading Business Service providing business No tax – for Royalty income Investing in Europe - enjoying Double Tax Agreement (DTA) about Transaction Lower transaction fee in selling property about Trading Avoid disclosing supplier information - protecting trading business about China market Enjoying largest benefit - using Hong Kong company as stepping stone Using Hong Kong HSBC bank account Acting as finance centre for international trading group RMB bank account for China trade and business Hedging for RMB appreciation   No tax – for Royalty income Background Mr. A owns intellectual property or technology that can be licensed to other company for commercial use. The arrangement Mr. A setup Hong Kong company H Ltd, and register H Ltd as the owner of the intellectual property (IP); H Ltd licensed use of the IP to a USA company for production use; H Ltd received royalty income base on the use of the IP in USA. Benefit The royalty income received by H Ltd is not subject to Hong Kong profits tax; Such income will be taxable if the use of IP is located in Hong Kong. Page Top