Regional holding company for asset management in Asia

The client, a private investor with production assets in China and Vietnam, owned shares directly through an individual, which created a high tax burden on dividends and complicated the consolidation of asset management in the two countries. A holding structure was needed to consolidate ownership of shares under a single company, reduce the effective tax rate on dividends from China, and simplify the group's banking services.

1. HK Private Limited Registration — opened a Hong Kong holding company with nominee director and shareholder services to maintain beneficiary confidentiality.
2. Corporate Account Opening — prepared a package of documents and passed a compliance check with Standard Chartered Hong Kong.
3. Application of DTT Benefits — obtained a Hong Kong tax residency certificate and applied the reduced rate under the Hong Kong-China Double Tax Treaty.
4. Transfer of Shares — organized the legally correct transfer of shares in production assets in China and Vietnam to the balance sheet of the new holding company.

The structure was deployed in 18 business days. The effective tax rate on dividends received from China was reduced from 10% to 5% thanks to the application of DTT incentives. The client received a single point of asset management across two jurisdictions and simplified group banking services.