Enjoys 0% tax incentives with Hong Kong company registration for Google Ads

Rate this item
(1 Vote)

register hong kong company for google ads google admobCompanies incorporated in different countries are subject to different value-added tax (VAT) or goods and services tax (GST) rates for the same advertising service payable to Google. For instance, the VAT rate for Google Ads services in Vietnam is 5 %, and in Singapore, the GST rate is around 7 % to 8 % and will increase to 9 % from January 1, 2024.

Therefore, many companies working with Google Admob and Google Adwords tend to switch their eyes to countries with attractive VAT policies for company incorporation. And Hong Kong seems to take the spotlight since many businesses tend to register a company in Hong Kong to enjoy 0 % VAT incentives.

In this article, we will find out why Hong Kong company formation for Google Ads should be your number one option and how we can help you register a company with the Hong Kong company registry.

1. Everything you need to know about Hong Kong company registration for Google Ads, Google Admob

 1.1 What is Google Ads? Do you need Google Ads for your business?

Google Ads is a PPC (Pay-per-Click) platform that can help businesses gain visibility online. The most common type of Google Ads ad is the search ad, which appears on the search engine results page (SERP) for searches relevant to the advertiser’s products and services. But businesses can also use Google Ads to run display, shopping, and YouTube ads.

Google Ads is a powerful advertising tool that can help businesses reach billions of people using Google's various products and services. With Google Ads, businesses can target consumers searching for answers on Google, watching videos on YouTube, exploring new places on Google Maps, discovering apps on Google Play, browsing content across the web, and more. With Google Ads, businesses have the potential to reach a wide audience and generate leads and sales.

1.2 What is Googe Admob? Why you should use Google Admob?

Google AdMob is the perfect solution for developers (software companies, gaming entities) who want to generate revenue from their mobile apps. AdMob has a wide range of advertisers, innovative ad formats, and advanced app monetization technology, so you can be sure you're getting the most value for every impression.

By connecting Admob to Google Adwords, you can unlock and maximize the power of MMO (making money online) while reaching millions and billions of potential customers worldwide.

1.3 What is Value Added Tax (VAT) or Goods and Services Tax (GST)?

Simply put, Value Added Tax (VAT) or Goods and Services Tax (GST) is an indirect tax paid in addition to other duties due and applied to products and services in a country. These two terms can be interchangeable. The VAT or GST varies by country.

1.4 How much is the VAT/GST for advertising services payable to Google?

All invoices Google issues for advertising services will be subject to country-specific VA/GST regulations.

For example:

  • In Vietnam, the VAT rate for Google Ads is 5 % (applicable from November 1, 2022)
  • In Singapore, the GST rate for Google Ads ranges between 7 and 8 % and will increase to 9 % from January 1, 2024.
  • Meanwhile, in Hong Kong, all companies registering in Hong Kong can earn VAT incentives of 0 %. This policy applies to all goods and services,

Therefore, businesses operating in app development and advertising should choose to register a company in countries with preferential tax policies for Google Ads, Google Admob. In this case, you should register a company in Hong Kong.

2. 7 reasons why you should register your company in Hong Kong working with Google Ads, Google Admob 

2.1 Tax advantages for companies registered in Hong Kong

Businesses that choose to form a company in Hong Kong will enjoy many tax incentives, including:

  • 0 % Withholding tax;
  • 0 % Sales tax;
  • 0% Capital gain tax (Tax on dividends and interest;
  • 0% import tax;
  • Foreign-sourced income is exempted from corporate income tax;
  • The profit tax rate for domestic-sourced income ranges from 8.25% to 16.5% (still lowest in Asia).

2.2 Irresitible tax benefits for a company incorporated in Hong Kong providing Google Ads, Google Admob-related services

Especially Hong Kong companies working with Google Ads, Google Admob can entice further benefit of 0% VAT for Google service bills.

2.3 Hong Kong is a global economic and financial centre with much large banking infrastructure

  • Hong Kong is among the international financial hubs of the world with a highly developed banking system. This business environment allows foreign investors more choices in opening a bank account in this region.
  • Investors incorporating a Hong Kong company can choose a wide array of bank products from the typical traditional bank account and payment solutions like Paypal and Stripe to the ultimate digital bank account.
  • Opening a corporate bank account in Hong Kong connecting to Google Adwords and Google Admob will help simplify the transactions with Google.
Global Links Asia
Global Links Asia Global Links Asia, with a team of professional, experienced consultants, we take pride in partnering with world-renowned and larger banks in Hong Kong, Singapore, the USA, etc. We will review, advise and support your business to connect with suitable local banks and other digital-based solutions.

Contact our experts at Global Links Asia to know which banking option is the most suitable for you today!

2.4 A transparent legal system at the top of the world.

You can rest assured that Hong Kong is always at the top of the world regarding the legal system and government efficiency, in accordance with The IMD World Competitiveness Yearbook.

In addition, the legal policy in Hong Kong emphasizes privacy and confidentiality protection. Shareholders and directors can be from any nation, and they do not need to disclose beneficial owners to authorities.

2.5 Developed Infrastructure with favourable geographical location

Hong Kong possesses a highly developed infrastructure with many transport hubs, an extensive network of airways, railways and roads connecting with the rest of Asia markets and Mainland China

The city offers unlimited business opportunities for every industry, with tens of thousands of international enterprises and investors benefiting from the Hong Kong company registration.

2.6 Attractive and business-friendly policies for foreign enterprises and investors in Hong Kong

The Hong Kong government has long been known for supporting foreign enterprises and investors looking to incorporate a Hong Kong company. Business-friendly policies have been made and made Hong Kong one of the world’s leading financial centers to this day.

From the ranking and research of the world's prestigious organizations such as IMD, and Worldbank, it can be seen that Hong Kong company registration for Google Adwords, and Google Admob will bring many opportunities for companies that want to register their presence in Hong Kong.

3. How to successfully incorporate a company in Hong Kong for Google Ads, Google Admob?

The process of registering your Hong Kong company working with Google Ads, Google Admons will include the following steps:

  • Step 1: Select company name and type;
  • Step 2: Register your company with the Hong Kong company registry;
Important note
You need to apply for a business license with the Hong Kong Government. This licence grants you the right to operate in Hong Kong territory.
  • Step 3: Open a physical bank account/digital bank account for the Google Ads, Google Admob services-related Hong Kong company
  • Step 4: Register and declare with the Hong Kong IRD (Inland Revenue Bureau).
Important note

Hong Kong is a highly prolific jurisdiction for international businesses, so the legal ceiling is relatively higher than in most places. This is why your company needs to do annual auditing and annual filing from certified auditors in Hong Kong.

Global Links Asia can help you prepare financial statements, file annual returns and tax returns with the IRD.

4. How can Global Links Asia help you achieve your dream Hong Kong company for Google Admob and AdWords?

Global Links Asia, with a team of experienced, professional consultants, takes pride in helping thousands of international investors and enterprises successfully register Hong Kong companies working with Google Ads, and Google Admob. We can support you:

  • Consult, and prepare documents for Hong Kong company registration;
  • Provide tax-accounting services, tax filing support, and prepare financial services for Hong Kong company;
  • Provide the Quickbooks accounting software license for Hong Kong Businesses;
  • Support in opening a physical bank account/digital bank account in the top financial center such as Hong Kong, Singapore, the USA, etc;
  • Frequent updates on the bank account opening process, and Hong Kong company registration.

5. FAQ when registering a Hong Kong company to work with Google Ads, Google Admob?

5.1 How long does it take to register a company in Hong Kong?

It normally takes 1 to 2 weeks to incorporate a company in Hong Kong doing Google Ads, and Google Admob-related services.

5.2 How many legal structure(s) can foreigners register with a Hong Kong company?

Hong Kong legally approves six classic forms of business entity for foreign enterprises and investors as below:

  • Limited Liability Company
  • Sole Proprietorship
  • Partnership
  • Subsidiary
  • Branch office
  • Representative office

Among all above-mentioned legal structures, the most popular choice for foreigners is the Limited Liability Company ( LLC) or Subsidiary for foreign companies.

5.3 Do you have to be present in Hong Kong when registering your Hong Kong company

The company formation in Hong Kong can be done remotely (100% online) with a professional service provider like Global Links Asia. You will have your digital or physical corporate documents delivered to you by Global Links Asia.

5.4 What types of bank accounts can be opened when registering your Hong Kong company for Google Ads, and Google Admob?

You can choose the following types of bank accounts:

  • Physical bank account
  • Digital Bank account

However, many entrepreneurs have difficulty opening a traditional bank account at a local bank such to interview visits, stringent procedures, or long waiting times. Even after going through all the requirements, the chance of opening one can still not be guaranteed.

That is why many opt for having a digital bank account and other payment solutions. With a simple process, remote opening, fast registration, and many added benefits, a digital bank account is a number 1 favourite of our clients worldwide.

The article was compiled and directly posted on the website by Global Links Asia on April 12, 2023. Copyright belongs to Global Links Asia. Please do not copy in any form unless agreed upon in writing by Global Links Asia.

PAYMENT METHODS

Liên hệ qua email

Liên hệ qua email

Liên hệ qua viber

Liên hệ qua whatsapp

Liên hệ qua telegram

Feel free to contact us via:

Viet Nam office: Nguyen Van Troi Street, Phu Nhuan District, Ho Chi Minh City, Vietnam.

Singapore office: 350 Orchard Road #11-08, Shaw House, Singapore 238868

Hotline: (+84) 938531588 / (+65) 3163 4102

Email: info@globallinks.asia

Liên hệ qua telegram Liên hệ qua viber Liên hệ qua whatsapp