Hong Kong banks are the future of asset protection
Hong Kong banks are the future home for those seeking asset protection. Banking and corporate law in this region offers many attractive asset protection features and benefits.
A New York Times article from September 22, 2010 headlined “Searching for bank secrecy in Asia” suggested that Hong Kong and Singapore were the new jurisdictions of choice for those seeking offshore bank accounts that were safe, secure and opaque. The article cites numerous sources and studies suggesting that those who once chose Switzerland for their offshore bank accounts were now creating accounts in these regions instead.
The article quotes Richard Murphy, founder of the British investigative organization Tax Justice Network, as saying: “Singapore is where the Swiss can now find the bank secrecy they have lost at home and Hong Kong is a close second.”
Asset Protection in Hong Kong Banks
The Hong Kong Treasury and Financial Services Bureau clearly does not view this region as an offshore tax haven for those trying to evade taxes in their home countries. Rather, the Office considers it an attractive jurisdiction for offshore investors and companies due to the region’s simple and fair commercial banking and tax policies.
The region’s banks and government have a strong tradition of protecting the privacy of the bank account holder. Local laws also allow the formation of corporations that allow the identity of shareholders and beneficial owners to be protected. Hong Kong company law requires that the name of at least one shareholder appear in the public register. To maintain the anonymity of corporate shareholders, a nominee shareholder may be used for registration purposes. A trust agreement is created between the corporate shareholders and the nominee shareholder that establishes the corporate shareholders as the beneficial owners and those in control of the corporation.
There is also the advantage of not taxing capital gains or interest on deposits, and corporations only pay taxes on income earned in the actual region.
The local Hong Kong government even provides bank insurance for bank accounts. During the current financial crisis, the government insured bank accounts without a maximum account limit. However, limits on the amount of deposits covered by government insurance may be reset as the crisis eases, so check with the bank before opening an account to determine the maximum deposit covered by government insurance. You may find it beneficial to open more than one account if your deposits exceed the limit.
For many, the ability to create Hong Kong bank accounts and hold assets in a variety of currencies is a huge advantage in today’s chaotic financial markets. Most banks in HK also offer online banking, including transferring funds between accounts and currencies online.
Add to all of the above the ease with which foreigners can open a bank account and/or create an offshore corporation and it is easy to see why Hong Kong is a popular choice for those looking to incorporate a business or open a bank account overseas. Foreign.