Tax residency – Most countries deem a company to be a tax resident in the jurisdiction in which it is centrally, or effectively, managed and controlled. By appointing a Hong Kong professional director, your company will be managed and controlled from Hong Kong and will therefore enjoy the tax benefits under Hong Kong’s double tax treaties. Alternatively, if the intention is to mitigate taxation of the Hong Kong Company by your home country or in Hong Kong itself, offshore professional directors will be required to ensure that central management and control is indeed offshore.
Compliance with local regulations – An experienced professional director such as Sovereign, will ensure that your company remains in full compliance with all local regulations.
Focus on essential activities – Foreign companies frequently create a Hong Kong branch office or subsidiary in order to facilitate business development in the Asia region. If the company’s fiscal and administrative affairs are managed by a professional director, your employees will be free to focus on external business opportunities.