Legal Documentation in Hong Kong

[kelvin811]

Hey guys. I'm in Hong Kong right now and I was wondering if there are any good legal service companies to setup my business. I'm talking about something like an equivalent of LegalZoom or Rocket Lawyer.

Thanks.

 

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[GlobalWealth]

Unless you area resident of HK AND doing business in Asia, HK is not a good option.

 

[kelvin811]

Unless you area resident of HK AND doing business in Asia, HK is not a good option.

I see. Can you further elaborate why? Thanks.

 

[GlobalWealth]

You must be a HK resident to open a bank account for a HK company now. There are firms that will be a director of your firm for a fee, but they will also have some level of control of your company. They will also be the signatory on your company bank account.

Second, many HK banks are shutting down bank accounts of HK companies that are not predominately trading in Asia.

For many years people have used HK companies as a tax haven jurisdiction since they don't tax foreign source income and HK is a good jurisdiction for both companies and banking and they have good merchant processing.

But for the past few years they have been cracking down on people that don't actually do business in Asia.

I've had many clients who've had their bank accounts closed because of this reason. And this presents a major problem since they will only allow you to send your funds to another bank account in your company name.

And getting a bank account outside HK for a HK company will be exceptionally difficult.

One of my clients had 7 figures in his HK bank account and had this issue. They gave him 14 days to provide wire instructions on where to send his funds. He could not get any bank to open an account for his company so he ended up having to fly to HK and hire a local lawyer for 10s of 000s to get a cashier's check in his name.

It was a messy situation.

 

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