Small Fund Set-up in Hong Kong

blueraincap

blueraincap

Hi, I know this question has been raised more than a few times, but my situation is a bit different and would like to have suggestions.

The total investment will be less than US$500k and from friends/family, based in Hong Kong/Japan. And Japanese residents CANNOT have their IB accounts linked, so the IB Friends/Family is not an option.

I would like to keep it simple and cheap as it won't be able to cover much cost.

Setting up as a Corp (limited) in HK will incur taxation.

Any ideas for a suitable setup?
 
Could be possible to setup a contract for a regular individual to individual loan with a variable rate? The loan as a date of expiration then you pay back the borrowed capital. Your friends and family lend you capital, you add or substract a monthly/quarterly/annual variable positive or negative rate.
 
that sounds decent actually on paper, as they will be equity-linked creditors. But the accounting for interim withdrawals and new investors will get pretty messy. Also, will cause confusion in the beginning
 
one thing I am not sure is whether a Corp (limited) set up in HK and opens an IB account for stock trading, will incur tax. There is no capital gain tax in HK but obviously a corp set up for the sole purpose of trading stocks, will be looked at differently.
 
Not an expert but it seems doable as hk is one of the most business friendly place.

I will post a link late if you cannot find relevant information.
 
You definetely can't trade hk stocks tax free with the hk ltd, not so sure about non hk stocks, ime the ird is more nosy than I wished for and you need to submit yearly audits, it's cheaper and less troublesome if u register in less complicated offshore locations, although the problem will be with opening the bank account for this company. It's definetely harder than it used to be in HK for instance ( to open offshore company bank accounts ).
 
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