Thursday, December 1, 2011
History and Advantages of Banking in Hong Kong
In 1997 the British returned Hong Kong to China. The city became one of China's two Special Administrative Regions. Many foreign investors were initially fearful of the impact of the city now being run by a communist power, and some investors pulled their investments out of their local accounts.
However, the governing model adopted by Beijing has proven very successful. The model provides this unique city with a high degree of autonomy in all matters except foreign relations and defense allowing Hong Kong to use its financial expertise to expand commerce between East and West.
Today international investors and businesses are returning to this city in part because of the Chinese connection. H.K. has become the point of access to Chinese trade for many international businesses without the legal and cultural obstacles of operating a business inside mainland China.
Many individual investors and businesses are choosing to open offshore bank accounts in Asia because these economies are anticipated to continue to grow despite the current global recession, as well as the greater account holder privacy the Asian jurisdictions offer. Investors and businesses see the stable economy and privacy protections as a strategy for minimizing business risks.
Other Advantages of Banking in Hong Kong:
Many offshore accounts are opened as Hong Kong corporate accounts, as opposed to individual accounts. Hong Kong corporations can be structured with nominee shareholders and can appoint a resident as the corporate secretary protecting the privacy of the beneficial owners of the company.
The increased sophistication of online banking services have made offshore accounts convenient and efficient. Bank accounts opened in H.K. offer the advantage of being multi currency, allowing account holders to exchange investments between currencies quickly and freely online.
The relatively low minimum deposits required by most Hong Kong banks to open an account also makes this an attractive option. Of course if you want to open an account with all the private banking services higher minimum deposits are required.
The policy of levying no capital gains tax, no tax on bank interest or stock market investments, and no tax on offshore sourced income makes the city a good choice for an offshore account.
The ease of opening an offshore bank account with a local bank makes it an attractive option for many. If you are in Hong Kong and have the proper documentation an account can often be opened in one day.
It is also possible to open accounts without visiting Hong Kong however this will take a little longer. It is possible to open a Hong Kong account with an international bank at a branch office in your home country or if you are using a professional service they will arrange to have the necessary documents emailed to you.
The Q Wealth Report is a quarterly journal that has been advising free thinking individuals for over a decade about offshore banking. To learn more about multi-currency banking in Hong Kong visit us.