Setting Up A Hong Kong Company For your Amazon Business

Michael Michelini is with us on how to setup a Hong Kong Company for your Amazon business covering the tax efficiencies and the perks of doing so, the disadvantages to watch out for and who should look to Hong Kong.

  • Getting deeper into Amazon and moved to Thailand

Why and what perks?

  • Michael came out to China to get the benefits of speed
  • Wanted to develop products faster
  • If you’re on the ground in China or Asia it’s a lot faster
  • Wanted to setup a company and a trading office
  • Differences of Hong Kong and China – Michael was guided by a lawyer that directed him to setup a Hong Kong structure first
  • Known to be a good B-2-B trading entity for buying from factories in China or Asia
  • SIngapore is also a good location for Amazon Sellers or Brand Owners

Lower Taxes

  • Lower to no tax, Michael advises to pay taxes somewhere
  • Usually people choose to pay in HK for 16.5% or 8.75% on first 2m Hong Kong dollars revenue
  • Usually 30-40% in China
  • Can get lower taxes and English Banking
  • Trusted as a first world country based on the UK laws and systems


  • Partner in a CPA company
  • Not been as easy for virtual based companies in Hong Kong without a physical presence/office in HK.
  • Banking has got harder for Digital Nomads now
  • Audits are more challenging and mandatory in HK with a licenced CPA to check your book-keeping
  • Make sure there’s no funny things happening
  • This is not free and a couple of thousand dollars a year
  • Upkeep is a little expensive compared to US
  • Pay higher fixed but less tax in the round
  • Register as Non-US Entity on Seller Central with 10% ownership or above in the Corporate Structure then you’ll need to be a US Company
  • Set it up as the Hong Kong company owns the US company


  • Wyoming is also pretty hot
  • Not such an expert on US corporate structure
  • Picked Delaware as it’s the most common structure for most companies structures
  • Look at Wyoming as well
  • You can incorporate in any and you pick one
  • Delaware is popular as it has no state tax and low annual fees
  • The federal tax you have to pay
  • Michael’s first company was in his personal name and his company was in a New York city address with huge taxes and three levels of taxes
  • Where Delaware has no City tax just federal

Who is Hong Kong for?

  • Need half a million to a million in revenue
  • A comfortable seven figures
  • Hiring in Asia
  • Where do you want your IP or Brand owned
  • Own it in HK or Asia and can do wholesale orders globally from HK
  • You can look like a Factory, Supplier from China

The Steps to make it happen for Tax Efficiency

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