1. Industry research suggests that China will soon rank first in the world as a source of clients. Have you experienced an increase in demand for your company incorporation services from this region?
The demand from Chinese clients has seen a significant increase during the past few years. However, we expect a plateau, or even a slight decrease, in line with the policy and economic changes in early 2015.
2. What is the single most important advantage your jurisdiction provides for Chinese clients?
1) Hong Kong has well-established systems which provide a positive image for Chinese enterprises.
2) As Hong Kong is an international financial center, money inflow and outflow are easier than in China.
3) Hong Kong has an English-speaking business environment which means better communication with international financial institutions.
3. It has been suggested that price remains a major factor for consideration for Chinese clients. Do you agree with this statement, and how do you think this will change in the years to come? Are you noticing a shift in emphasis on price to an emphasis on the quality of offshore structures?
We totally agree with this statement. However, price is still a good tool to differentiate Chinese clients. The clients that are willing to pay a higher price usually have a better understanding of the service they need. When they require a higher quality of professional service than a basic or standard service, the average price will increase further.
4. Opening up a bank account for newly set-up companies has been a challenge for some jurisdictions in the past few years. Is this the case in your jurisdiction? How quickly can a company in your jurisdiction have their bank account set up?
It is an international trend for bankers to take a more stringent approach in account opening, including Know Your Customer and due diligence processes, proof of real business activities, anti money-laundering issues, etc. Local banks will need around 1-2 weeks to review an application. International banks will need around 2-4 weeks.
5. If you could describe the incorporation industry as it relates to China in one word, what would that be?
Improvement needed. While some of the firms provide services according to international standards with good quality, others offer competitive prices with comparatively low quality services.
Source: Midland Consult
