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Business

Benefits of Setting Up Company in Hong Kong

An investor always researches upon the best location to set up their business. 

Amongst the leading business centers of the world, Hong Kong is rated the 4th best destination for launching your business. The city is every entrepreneur’s dream come true in terms of lucrative business opportunities. The government has devised favorable policies and environment for investors from across the globe.

No other city in the world may offer simplified taxation, straightforward legal system, high end infrastructure and skilled work force. Work life balance is another element which attracts the foreign business holders. You can set up a company and once your business is well established, you can consider the immigration of your family as HK offers a fine life style for all. 

The registration of companies poses to be a huge challenge in many cities but Hong Kong is the only destination which helps you launch and implement your business within days of submission of the required documents. 

Central Location

Hong Kong has made it to the Forbes list for being the best business destination due to its strategic location. In simpler words, it’s the gateway to the MainLand Chinese markets. 

The Free Trade Agreement (FTA) signed with ASEAN in 2017 has made business trading , dispute settlement, intellectual property protection a lot more effective in Hong Kong.

Workforce

Most businesses are able to recruit the right talents easily as the current working population is well educated and highly skilled in line with the job market. However, if you require foreign talent then a work visa for the employees is all you need to obtain. Once the visa is issued, the foreign employees can be taken on board easily. 

Most personnel are able to communicate effectively in English and Chinese, however, you can educate them further and impart customized technical trainings for the job in question. 

Tax System

The taxation policies formulated by Hong Kong are simple and business friendly, once can comprehend the tax system easily. The corporate taxes are two tiered; you have to pay 8.25 percent for quantifiable profits under 2 million HKD and for the exceeded part, you need to pay 16.5 %

 A lot of businesses benefit from the Offshore Claim issued by the Inland Revenue Department (IRD) 

The city has 3 main types of taxes:

• Corporate profits tax: Inward profits taxed at 8.25 to 16.5%. 

• Property tax: 15% on the net computable value of the property

• Salary tax: 2% to 17% of assessable incomes.

You can avoid a number of taxes in HK, these include:

• Value-added tax (VAT), Goods & Services Tax (GST), or Sales Capital gains tax

• Dividend tax

• Withholding tax

• Hotel accommodation tax (HAT)

• Capital Gains Tax

Infrastructure:

The high end infrastructure of Hong Kong add significant value for investors, the well maintained airport (which is also amongst the busiest in the world) along with a huge number of trams, railways make the mobility of commutation of people and goods very convenient. 

The transport network is strong, well maintained, and very efficient for individuals and businesses. 

Registration and Hassle Free Set up:

Hong Kong company registration involves the submission of key documents, which can be discussed and sorted with an expert. Once the documents are approved by the concerned authority, it doesn’t take more than 5 to 7 days to get started with your business.

Moreover, having a physical office is not mandatory for approval. You can set up your business in Hong Kong from anywhere in the world.  Even after the setup, HK provides you with tools to boost your business and grow in the right direction.  

The nationality of business owners is not a matter of concern in Hong Kong. The type of business, its operations and location have no restrictions either. You can apply for online registration, without any physical presence of any of the stakeholders. However, annual tax and company filing are mandatory.

Transparent Legal System:

Hong Kong has one of the safest economies, the up to date policies and active legal system has worked on several policies to give a crime free work place to everyone. Fair businesses practices, regular audits and fair legal system are the key attraction elements of Hong Kong company registration.

Well Developed Banking Sector:

Hong Kong has more than 100 licensed banks, 23 deposit taking machines and countless local representative offices. The city’s stock market is recognized as the second largest in Asia. The Stock Exchange of Hong Kong (SEHK) comprises of 1673 companies, which have collectively raised a whooping HK$3,833.4 billion. 

Freest Economy

You can derive maximum benefit from Hong Kong’s leniency in taxation on import/export and open markets.

The final word

Hong Kong is often compared to New York and London when it comes to financial stability and life style.

Prior to setting up, you can hire an expert agency which can guide you through the detailed process and enable you register a business in Hong Kong such as Get Started HK. They can help you set up your business in the world’s safest, fastest growing and number one business hub. 

Many entrepreneurs pick HK as their preferred business location due to its well established education and health sector. The quality of life is commendable with up to date and modern facilities for its citizens. One can set up a business and also settle down in Hong Kong for an easy and hassle free life style.

Hong Kong is a multicultural hub with endless growth opportunities for students and entrepreneurs.