There are different pros and cons for setting up a HK company compared with setting up an offshore (Seychelles / BVI / Marshall Islands) company. As each client’s situation and requirement is different case by case, client is suggested to seek professional advice before processing.

Below please find a comparison between HK and offshore company in various main categories:
  HK Company
  Offshore Company
Corporate Director Under the new Ordinance, every HK company is required to appoint at least 1 natural person director. Only having corporate director(s) is not allowed. There is no such restriction on director, meaning the company can appoint purely corporate director(s) without natural person. However, its regulatory system might not provide very high confidence to your targets.
Nationality of Director Unlike forming a Singapore company that requires the foreigner to partner up with a local Singapore citizen, there is no limit on the nationality of the director(s) for setting up a HK company. There is no limit on the nationality of the director(s) for setting up an offshore company.
Reputation Standing HK company earns a high reputation standing as an entity type when compared with other offshore jurisdictions here in HK, mainly because of its sound regulatory system and financial infrastructure. On the contrary, due to the relatively loose regulatory environment, offshore jurisdictions may give your partners and clients a rather flimsy impression when considering your business background.
Taxation Corporate Profits Tax rate is 16.5% in average (subject to change every year) for business operated in HK. Easier to get tax exemption if the business is completely operated offshore. It is also not required to prepare audited financial reports generally.
Privacy Protection Relatively low level of privacy protection since the registration is open for public search. Easier to achieve anonymity & privacy protection as the registration is not open for public search.
Opening Bank Account Easier to open company bank account even for foreigners. The account opening fee is low too. More proofs, documentations and requirements are needed to open bank account. And the account opening fee is higher compared with a HK company.
Enter into China Market HK company setup could be a better choice if you plan to set up a company or rep office in China later. Not a very preferred entity as certain restrictions might apply. Also, you could not enjoy CEPA benefits.
Discontinuance of Business It is required to follow deregistration procedures. Generally the whole process will take around 6 - 9 months. Easier process to close down the company.