With the development of foreign trade and SOHO in recent years, more and more investors choose foreign trade SOHO, that is, to engage in personal foreign trade. There are many advantages to registering a Hong Kong company for personal foreign trade. Hong Kong companies do not have registered capital requirements and do not need to file taxes every month. Today we will take a closer look.
Domestic personal foreign trade operation process (1) Operation process: Individuals take goods from factories and export them to American customers through foreign trade companies.
(2) Capital flow: If the contract amount is 1 million, the cost is 900,000 and the profit is 100,000.
The operation process has the following problems that are the most troublesome for individual foreign trade:
(1) Passive fund operation
All funds must pass through the foreign trade company account. Customers need to check the foreign trade company when the funds arrive, and often they cannot check in time. Not only are the inquiries delayed, but many foreign trade companies also use customers' funds without the customers knowing.
(2) Difficulty in profit withdrawal
In order to pay less tax, foreign trade companies require customers to provide invoices for 100,000 yuan in profits. It is difficult to buy invoices in the market now, and a fee for buying invoices is required.
(3) Customer information is not confidential
All transactions must go through foreign trade companies, so their own customer information and operation procedures are exposed to foreign trade companies, and bad foreign trade companies will snatch customers' orders.
(4) Low profits
All operations must go through foreign trade companies, so foreign trade companies need to charge considerable agency fees. At the same time, buying invoices is also time-consuming and costly, which will inevitably lead to less profit of 100,000 yuan.
(5) Insufficient customer confidence
Due to the uneven quality of domestic and foreign trade import and export companies, individuals often change foreign trade companies during foreign trade cooperation. Foreign customers feel that your company is always changing and feels unreliable, and they may lose the opportunity for long-term cooperation.
The benefits of registering a Hong Kong company for personal foreign trade The above 5 headaches can be solved by registering a Hong Kong company.
(1) Control of funds and flexible allocation
After registering a Hong Kong company, you can open a bank account. Foreign customers' funds can be directly deposited into the Hong Kong company account, and the costs are transferred from the Hong Kong company account to the foreign trade company, and the 100,000 yuan profit is intercepted in the Hong Kong company account. Advantages: First, you can know the inflow and outflow of funds in a timely manner; second, the 100,000 yuan profit is in your own hands and is not subject to the restrictions of the foreign trade company; third, you do not need to issue an invoice to the foreign trade company, and the money for issuing invoices is also saved.
(2) Easy profit withdrawal
All funds are in the Hong Kong company bank account. Offshore accounts are generally equipped with online banking, which can be transferred anytime and anywhere.
(3) Confidentiality of customer information
All foreign customers sign contracts with their own Hong Kong companies, and foreign trade companies cannot obtain this customer information, so it is not easy for foreign trade companies to poach their customers. Unless foreign customers need a certificate of origin, but there are not many customers who need a certificate of origin.
(4) Stronger customer confidence
No matter which foreign trade company you change, foreign customers will not know, because the contracts they contact are all Hong Kong company contracts, which gives foreign customers the feeling that your company is stable and reliable, and they have stronger confidence in doing business.
Through the above examples, we can see that registering a Hong Kong company has many benefits for personal foreign trade, and it is extremely convenient for long-term trade and capital allocation. There are so many benefits for personal foreign trade to register a Hong Kong company. If you need to register, you can entrust a qualified agent to handle it.
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