The Hong Kong Trust

The Hong Kong trust is regulated by the Hong Kong Trustee Ordinance which is quite similar to the British Trustee Act. Hong Kong trusts can be set up for many purposes including for charity and private use. Hong Kong trusts are generally used for the protection of assets. Other types of business entities which can be incorporated in Hong Kong include private companies, limited liability partnerships and sole proprietorships.

Trusts have been used for a very long time and continue to prove their beneficial qualities. In addition to setting up a trust for asset protection and property transfer, you can open offshore accounts or apply for a second citizenship. You can be given access to registered agents who give help with reputable programmes for second passports. These are important for financial security, physical safety and better chances of protecting assets. Don’t be afraid to go to the contact us page and ask for information on how a second citizenship along with your trust can work for you.

Hong Kong trusts which are recognized are those which have been created by writing. When creating a Hong Kong Trust the trust deed must contain the following information: the address of the trust, the assets to be placed in the Hong Kong Trust, the purpose for forming the trust and the date by which the trust should be dissolved. Hong Kong Trusts are not obligated to be registered as this is allowed by trust legislation in the jurisdiction. Hong Kong Trusts have no need to file annual financial statements to the tax authorities in the low tax haven if the trust has no assets in Hong Kong or does no business in the low tax haven. Hong Kong trusts doing business in the territory is obligated by law to files its annual audits and financial statements with the tax authority there.

A Hong Kong trust must have the following characteristics. The trust must have an appointed trustee. The assets which are placed in a Hong Kong trust are placed in the care and management of the appointed trustee. The assets or wealth in a Hong Kong trust must be managed according to the laws laid down by the trust deed, the distribution of the Trust assets must be done in the same manner. The assets of a Hong Kong Trust which has been placed in the care of a Trustee are separate from the asset of said trustee. Hong Kong trusts cannot have more than four (4) appointed trustees.

Hong Kong Protective Trusts are set up in the names of beneficiaries who, at a certain age or at the outcome of a specified occasion inherit the assets placed in the Hong Kong protective trust. The trustee will grant permission to the Trust beneficiary as to when income can be attained from the Hong Kong trust. These types of Hong Kong trusts can have a lifespan of up to 80 years under the laws of the country. Hong Kong protective trusts are governed by a trust deed.

Hong Charitable Trusts are those trusts which are set up for purposes which may be beneficial to a society or a population of people. Hong Kong Charitable trusts. The Hong Kong trust which will be recognized as charitable are those set up for the following purposes: the advancement of education, the relief of poverty, the advancement of religion and any other purpose which might benefit a society. These charitable trusts are exempted from local taxes in Hong Kong. Hong Kong charitable trusts are exempted from paying Stamp Duty on transactions carried out behalf of the trusts. Hong Kong Charitable Trusts are also exempted from estate tax.

 
 

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