May you have heard the term “promoter”? Well, you may have discovered the need to clarify that word for the first time, so you must understand what a “promoter” under the law, promoters are required to explain this word for the first time to protect the business from fraud and deception. But do you know why a promoter is essential?
You may have already heard about the power of a promoter to get an offshore company in Hong Kong-registered for tax benefits. If a promoter is appointed to take care of a start up business Hong Kong, he may also be asked to manage the offshore company and ensure that the rules and regulations are being strictly followed. A promoter could even be asked to make sure that the offshore business is appropriately managed, and that all transactions are carried out by authorized people with direct legal authority to do so.
If you run a successful business in Hong Kong and wish to set up an offshore company, you will have to make use of a promoter. However, there are different types of promoters, and you should understand them if you want to use one for your purposes.
The first type of promoter is the “Commercial promoter”. The Commercial promoter is one who is concerned about the commercial aspect of the business. It will be concerned about how to promote the business. For example, suppose you are an entrepreneur running a franchise. In that case, the Commercial Promoter you hire could be a franchisor who wishes to make sure that your franchise is promoted that you can make profits.
The next type of promoter is an International Organisation. The International Organisation could also work for you if you wish to make your business run smoothly with minimal costs.
The third type of promoter is the “Non-Profit Representative”. The Non-Profit Representative is a promoter who works for a non-profit organization who wants to help you find ways to benefit from the opportunities that open when a person establishes an offshore company.
The fourth type of promoter is the “Regulatory Representative”. This person works for the regulatory body of Hong Kong to protect the interests of companies that wish to set up offshore companies. However, this person is not required to make any contributions to the start-up of the offshore business. Still, he can provide information to the regulator about the company’s financial status. His role is to help the regulator to assess the company’s suitability for registration.
Once a promoter is chosen for your offshore business, you should be careful to choose a good one. It would be better to choose a promoter from an industry you know well, such as finance or business, or from a country where you have plenty of business experience.
You may be able to do some research on the promoter’s background yourself by asking his previous employers or former clients. You could also approach the Hong Kong authorities and ask them about his qualifications. It would be better to choose a promoter who has a large client base. It will allow him to deal with several offshore businesses, each of which can offer valuable insights into his personality, skills, and abilities.
The promoter should also be someone with whom you feel comfortable. It should not come from a country where the language is difficult, and there is a risk of misunderstandings.
Before you decide to appoint a promoter for your Hong Kong business, you should make sure that you have consulted a consultant.
If you are planning to set up an offshore business and are not sure about whom to hire, then you could consult a lawyer or a tax consultant, who can recommend the best person for the job. It will ensure that the person you choose will be able to handle the tax issues related to your business. Your consultant will also be able to advise you about the other promoters you might consider for the business.