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

Disadvantages

  • 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

Delaware

  • 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

Don't Leave Money On The Table...

 Use The Same PPC Hacks On Your Amazon Campaigns!

You have Successfully Subscribed!

Share This
%d bloggers like this: