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   Lower transaction fee in selling property Background Mr. A is 100% shareholder of H Ltd (a Hong Kong company); H Ltd owns a Hong Kong property for long term investment and no finance required from bank. The arrangement Mr. A needs to sell the property to Mr. B; Market value of the property is HK$ 5,000,000; If H Ltd sells the property to Mr. B, stamp duty payable is around 3% of HK$ 5,000,000 = HK$ 150,000 (the rate as at 7/2008); If Mr. A sells share of H Ltd to Mr. B, then, Mr. B owns the property indirectly. Benefit Share transfer stamp duty is HK$ 1 per HK$ 1,000 value; Therefore, stamp duty will be around HK$ 5,000,000 / 1,000 = HK$ 5,000; Even both buyer and seller need to pay the stamp duty, it is only around HK$ 10,000; There is saving of around HK$ 140,000. Page Top