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

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  1. #1

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    Nov 2011
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    Starting a business in HK just to invoice myself, then closing the business

    Hi. I have money in another country where I've been living and I can't simply transfer it out to my own foreign bank account because the country's banking laws are very strict. The money is just my life savings that I transferred there and invested in banks to earn their high interest rates. It's all my legitimate money, no taxes owed. I'm retired.

    My bank says the law allows me to transfer my money out if I have an invoice from a foreign company that I have to pay. So someone suggested to me that I go to HK, start a business, and send myself an invoice for the money I want to get out.

    How much would it cost to start a simple business? I don't think I have to have a HK corporation, a sole proprietorship might be sufficient. I'm just a consultant. I want to spend as little as possible. Just start a HK company, open a HK bank account for the company, invoice myself, and ask the foreign bank that is holding my money to transfer it to the HK company's bank account in HK.

    I want to stay in HK as briefly as possible, because the hotels are so expensive.

    After the transfer is received in HK, I have no need for the business anymore and would want to close it. I would need to close the business's bank account and deposit the money to a personal bank account. I'd like to keep a personal bank account in HK, probably at HSBC, even after I close the business.

    Is this doable? Can I do it by myself or do I need to pay for assistance? How much will I have to spend?

    Would I have to pay HK taxes on the money that is transferred into HK?

    Can i close the business quickly and with minimal expense?

    Would i then have to file a HK tax return and is that simple enough to do by myself? The business would not earn any money, its purpose is only to get my money out of another country.

    Thanks for listening. I would greatly appreciate any advice.


  2. #2

    Join Date
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    Clearly this would trigger all the "money laundering" alarms in the banking system since it appears to be exactly that.

    konab and Football16 like this.

  3. #3

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    Oct 2005
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    Glad it just wasn't me that thought that.


  4. #4

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    Why on earth would you transfer your "life savings" to a country that has banking laws that prevent you from transferring the money out again?? Just to earn some interest?? Seriously?

    Setting up your own effectively fake company isn't going to work. As PDLM and jimbo have already said, it screams money laundering...depending on where you are in the world, that's a prison sentence. And let's not even get into fraud for invoicing yourself for goods/services that you've never provided.

    Loz_2, jimbo and cw1483 like this.

  5. #5

    Join Date
    Oct 2009
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    Money Laundering 101, do not post your intentions on a public forum for all to see. Especially when your email address, IP address and any identifying information is logged and can be subpoenaed in the future to show premeditation and conspiracy.

    You sound like someone who either came into a amount of cash overnight (Stolen), or Law Enforcement trying to setup a sting op. If you need your money washed and cleaned, going the cheap route is not the best way. Best to have someone in the business who has done it before handle these things for you. If you want to do it cheap, I guarantee you that you will lose your money.

    Typically when money is cleaned, the surcharge is 15 to 20% based on the amount of $$$ and the originating currency, the money is sent to various offshore companies/countries where the money is cleaned for a certain amount of time before being changed from Black to White.

    If it is indeed your actual life "life savings" you should consult a financial planner not ask a loaded question like this on a public forum.

    Oldtimer and Dreadnought like this.

  6. #6

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    Mar 2011
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    Hilarious!


  7. #7

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    Sep 2007
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    Contact my friend Leo, he should able to help:

    Leo Getz - Financial Planning


  8. #8

    Join Date
    Nov 2011
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    2

    My money is 100% clean, legal and tax has been paid on it. I was afraid I'd get these kinds of responses. Everyone on the internet, it seems, is eager to think the worst of anyone who posts anything and accuse them of everything under the sun. I'm very disappointed.

    You immediately think I must be a criminal instead of just someone with a problem. A lot of expats have difficulty transferring their money, and it has nothing to do with money laundering. It has to do with the fact that governments are becoming increasingly overbearing with their regulations.

    Never mind, I obviously won't get any help here.

    Gweilo86 likes this.

  9. #9

    Join Date
    Nov 2010
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    jdonn, which country are you in? North Korea or Iran?


  10. #10

    Join Date
    May 2010
    Posts
    107

    I genuinely cannot see how anything the OP is suggesting even remotely resembles money laundering. I'm kind of shocked by the responses.

    OP, as you've already suggested, this forum probably isn't the best place to get the advice you are looking for. However, what you are doing sounds clever and I would certainly investigate it more. Out of curiosity though, why are you thinking of HK as a route to doing this rather than any other country?

    Have you considered purchasing securities of precious metals instead of trying to get the money out of the country in cash?

    Luckycat... plenty of countries have these ludicrous laws. I've had similar problems with South Africa.


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