Tax Services in Hong Kong
Intellectual Property Structuring & Royalty Routing Services
Often the most valuable assets that a business owns is its Intellectual Property (IP). IP rights generally secure know-how or in other words secure the rights that the owner has developed, invented and / or created over the course of years while doing business. IP rights are one of the most important areas of todays commerce. In the current business world the security and protection of a company’s rights is a key necessity to any infringement by competitors. Mühler McKay has broad experience in IP securitisation and registration in Hong Kong, China (PRC) and worldwide.
There is however an important second area to Intellectual Property (IP) rights, which is intellectual property structuring and royalty routing. If companies do not own IP rights that they are using to do business, they enter into licensing agreements with the owner of the specific IP rights and pay royalties for the usage. Third-party and intra-group IP rights utilisation has become an integral part of revenue generation and allocation for businesses in Hong Kong and elsewhere. By the use of intellectual property structuring and royalty routing services, IP rights can be used to achieve tax efficient structuring of businesses and groups of companies.
The company that uses or exploits the IP rights has to pay royalties, which form the payment of licence fees or commissions to the owner or owning corporate entity for the use. Intelligent intellectual property structuring of the ownership of such IP rights in addition to intelligent royalty routing can lead to more tax efficiency and to considerable tax savings for Hong Kong and international businesses.
Our intellectual property structuring and royalty routing services generally include:
- Securitisation of relevant Intellectual Property and IP rights
Mühler McKay can help to secure all necessary and to your business available rights.
- Tax efficient set up of your IP rights by using intellectual property structuring and royalty routing services
We can help you with structuring your IP rights in a tax efficient manner. This normally includes incorporation or formation of a company that shall own the IP rights in a favourable jurisdiction and then either transferring ownership rights of the IP rights to the company or securing the rights in the name of the company.
- Intellectual property structuring and royalty routing services
When choosing where to set up the IP Holding company, our intellectual property structuring and royalty routing services keep all details of your particular business in mind. It is essential to consider the applicable comprehensive double tax agreement / arrangement (CDTA). The key is to find a jurisdiction that fits your needs and your business.
- Drafting of necessary international licensing agreements
The IP Holding company then licenses the IP rights to customers (for example to operating group companies) around the world. In return, the customers will pay royalties. The intellectual property structuring and royalty routing has to be planned carefully.
- Preparing Transfer Pricing and other documentation
Tax Authorities might have questions in regard of your intellectual property structuring and royalty routing, therefore it is vital to have the correct documentation prepared and to work together with experienced experts.
- Supporting services
Mühler McKay also provides supporting services for business operations such as assistance with incorporation services / company formation services, advising on tax efficient legal structures for (groups of) companies (corporations, for instance a Hong Kong Limited Company, partnerships, branches, representative offices), bookkeeping and accounting (according to Hong Kong principles) as well as audit arrangement, general corporate compliance like provision of company secretary services (in Hong Kong) as well as providing a registered address or virtual office in Hong Kong, obtaining obligatory registrations, permits and licenses, as well as employment advice, including Hong Kong work visa application and general intellectual property structuring & royalty routing services.
The Hong Kong based intellectual property structuring and royalty routing experts of Mühler McKay have the appropriate experience and expertise to guide you and your business through the entire process and to assist you on an ongoing basis. Intellectual property structuring and royalty routing services are one key to a substantial boost in security and profits for businesses worldwide.
We appreciate the opportunity to assess your situation and to assist you and your business with any intellectual property structuring and royalty routing needs and opportunities. Mühler McKay offers comprehensive intellectual property structuring and royalty routing services which include arranging IP rights in a tax efficient manner in order to bring down your effective global tax rate, satisfy international tax compliance obligations and mitigate taxation risks.
Please contact us or visit us in Hong Kong for your first consultation for our intellectual property structuring and royalty routing services.
Mühler McKay based in Hong Kong is a business advisory firm with worldwide reach and renders, among others, intellectual property structuring and royalty routing services to a diversified international client base from various industries and sizes.