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Starting a business in HK just to invoice myself, then closing the business

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  1. #31

    Join Date
    Feb 2010
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    7,441

    As Football says, are you prepared to pay company tax on your transfers? You may get around this by doing transfers slowly and then closing the company down within one year (say 11 months or so) but it will be still illegal obviously you have received cash for services or products rendered and with no real expenses it will be nearly 100% profit. You could do this but if you ever come back to HK you could be up for tax evasion or something.

    Another option we were discussing about getting cash out of China was to develop a research project with a foreign company. This is for R&D of some product/service. Registered the contract with the right department allows you to get the bank approval to send cash out of the country.

    I don't know which country you are talking about but that is one way that was put to me.


  2. #32

    Join Date
    Oct 2009
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    133

    The OP hasnt come back so its prob a run up.


  3. #33

    What's the problem?

    So many negative comments! Read the original post and take it at face value - He's had his money in a country with high interest and currency restrictions. He's retired and wants to extract his life savings into the wider world.

    What he's looking for is tax-avoidance which is legal, rather than tax evasion which is not. Hong Kong lives and breathes this stuff - that's what all those ads for off the shelf companies are about: people creating corporate identities and shuffling funds between them to take advantage of the way tax laws are structured.

    You know the type of thing - pay yourself a salary that puts you just below the tax threshold, and once a year pay yourself a (tax free) dividend to get the money out of your company. This is where phrases like "for services rendered" and "other valuable considerations" come into their own. Perfectly legal, very common, and the accountants fees tend to be *much* less than the tax saved.

    He's stated that he's allowed to pay money out of the country if he's invoiced for it - so the scheme he's considering would probably be within the letter of the law there, if not withing the spirit of it.

    Certainly in HK this sort of thing goes on all the time and, when properly structured, is perfectly legal.

    imshah likes this.

  4. #34

    Join Date
    Oct 2005
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    14,414

    Malcolm

    You don't work in finance do you?


  5. #35
    Quote Originally Posted by jimbo:
    Malcolm

    You don't work in finance do you?
    nope. Why?

  6. #36

    Join Date
    Oct 2005
    Posts
    14,414
    Quote Originally Posted by Malcolm99:
    nope. Why?
    Because it shows you don't know the rules and regulations of moving funds from one country to another etc.

    Those of us you disagree with have a working knowledge of Finance and or Money Laundering rules.

  7. #37

    Join Date
    Mar 2011
    Location
    Tung Chung
    Posts
    435

    Many of the Asians in America use illegal wire services but I would not recommend doing that because you would have to deal with organized crime.

    Disclaimer: This information is for learning purposes only and in no way endorsing money laundering lol.


  8. #38

    So edcucate me...

    The OP stated the laws of the country where the money is allow it to be transferred on presentation of an invoice.

    If he makes some sort of transaction here - say buying an asset of some sort -and receives an invoice he would then legally be able to transfer the funds to pay the invoice.

    If he then chooses to resell the asset and receive funds for it in HK that would also be legal.

    Where's the problem?

    I'm not being facetious or trying to pick an argument - I'd like to know who's laws would be being broken. I'm assuming the cash is legally his to start with.


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