Benefits of Dedicated Relationship Manager Services for Offshore Company Formation

Hong Kong has been reputable in the importing and exporting industry for many years thanks to the favorable tax, the Free Trade Agreement with Mainland China, and transparent company regulations for foreigners. However, if the owners are not properly instructed to maintain the companies in Hong Kong, the consequences will be dreadful to deal with. Therefore, choosing another offshore jurisdiction for incorporation and running its business would be a better choice. 

Let’s follow the following case to see why and how our clients choose to switch their businesses to Seychelles companies instead of continuing with the Hong Kong companies.

CASE STUDY:

Mr. Alexius’s Hong Kong company has been operating for 3 years. It is a wholesaler in trading pharmaceuticals, medical devices, and other secondary products such as beauty products and food supplements. The company has a strong nexus with China, European countries, and Bangladesh for imports/exports. Its business model is online based, with no physical office and local staff needed, he works with his clients via contracts and e-mail correspondence.

1. Challenge for Hong Kong offshore company:

Without the proper instruction on how to maintain the offshore company annually from the previous company secretary and company formation provider, Mr. Alexius did not carry out the annual compliance processes, which include accounting, auditing, and tax filing reports to the government correctly. As a result, his company has been struck off and subjected to a certain amount of penalty from the government for the late tax and annual return filings.

He reached out to Global Offshore Company to find an optimal solution for his Hong Kong company as he didn’t want to pay a lot of money, but still wanted to continue with his business and have an offshore bank account for operation. 

2. Solution to deal with the situation: 

Phase 1: Handling Hong Kong Offshore Company:

• The option for him is to deregister his Hong Kong company with the current Registered Agent by submitting all the missing financial reports and paying the government penalty. He also needs to close his current Hong Kong offshore bank account to ensure that his company is completely closed.
• Otherwise, he can choose to abandon the company by not paying any annual fees and carry out the annual compliance obligations. However, abandoning a company, whether it’s in Hong Kong or elsewhere, can have legal implications such as prosecution and fines, negatively affecting future business activities. But the specifics can vary based on the laws and regulations of the destination where the company is registered. However, clients are advised to consider carefully and seek advice from the tax authorities and Hong Kong company Registered Agent before proceeding with the abandonment of the company.

Phase 2: Opening an Offshore Company

The client can set up a new offshore company with a offshore bank account to continue his trading activities: 

After a thorough consultation and dedicated relationship manager services from G.O.C, the owner finally made the decision to incorporate the company in Seychelles and open offshore bank accounts doing the same line of business with two neo banks, Currenxie and Payoneer.

Setting up an offshore company in Seychelles can offer multiple advantages, depending on the specific needs and circumstances. 

Here are some reasons individuals or businesses might decide to establish an offshore company in Seychelles:

• Seychelles International Business Company (Seychelles IBC) enjoys zero corporate tax benefits for foreign-sourced income. 
• In Seychelles, there is no accounting & auditing for IBC companies, compared to annual financial reports and tax filing requirements in Hong Kong. This will save at least USD 1,500 in expenses for your business.
• The company information will be kept confidential and cannot be found online either, keeping you much higher privacy compared with offshore Hong Kong companies. 
• Keeping a transparent business by submitting financial records biannually at the registered office in Seychelles.
• Offshore Seychelles companies also have more banking options than in other offshore countries 
• Moreover, the Seychelles incorporation is fast, remote and simple, only takes 2 to 3 working days (except for the Public holidays) after all the documents have been submitted and the compliance check has been cleared.

For these reasons, Mr. Alexius did not hesitate to switch the registered jurisdiction to Seychelles to save up annual company expenses and enjoy the ease of company maintenance.

Phase 3: Opening business offshore bank accounts

After the Seychelles company was incorporated, he applied for an offshore business bank account with Currenxie and Payoneer under the instructions of our executives to level up the successful rate for the application.

The pharmaceutical industry is frequently viewed as high-risk by banks due to its inherent nature. Consequently, pharmaceutical companies often face significant challenges when attempting to open offshore bank accounts at reputable institutions, which have stringent requirements and long processes. With detailed instructions, personalized strategy, experience, and exclusive relationships with banks, Mr. Alexius promptly opted G.O.C for banking service.

We have collected all the documents, reviewed and pre-qualify with our banking partners to ensure the highest success rate for his company. We also filed the application form, explained and clarified his business activities with the bank compliance teams, and appealed the application in case of rejection. 

After 15 days of working closely with the bankers, with a delightful result, we finally succeeded in opening 2 bank accounts for Mr. Alexius.

We received recognition for our effort and services from Mr. Alexius. He praised us for the fast processing time and that documents were streamlined to a minimal level. He is very satisfied with the consulting, offshore company incorporation, and offshore banking services.

3. Key takeaways

1. What have the clients achieved with Global Offshore Company consulting services?

• The Client has successfully closed down the Hong Kong company under our consultation and instruction with minimized fee and streamlined documentation/process. 
• Clients received personalized consulting services based on their business profile and requirements to get the offshore bank accounts that are best suited for their business transactions.
• The newly setup IBC has registered 2 offshore bank accounts successfully when its business is pharmaceutical trading, which is being restricted by many banks. 
• As our premium client, the client gets dedicated support before and after the company and bank accounts are opened 
• Thanks to the exclusive relationship with partnered banks, G.O.C is able to support clients negotiate for a better money transfer rate once onboarding with our referral and dedicated support.

2. How are our solutions different from other service providers?

• Global Offshore Company provides clients with tailored solutions based on their business goals.
• Before proceeding with the company incorporation process, we always do the pre-qualification for the client’s business to check out the approval rate for their offshore bank applications. 
• Thanks to the exclusive relationship between G.O.C and the bank partners, we are able to connect the bankers and the clients for ongoing support which makes our service stand out from other providers. 
• We provide flexible procedures and streamline documents but still comply with the compliance requirements of offshore company incorporation and offshore banking opening process.