Advantages of incorporating in Hong Kong

Why should you choose Hong Kong for setting up your business

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Advantages of incorporating in Hong Kong

Nowadays, most investors and entrepreneurs are gearing up to line up their business overseas – especially in areas like Hong Kong. The first reason behind this trend is to enter into the international market and to profit from tax-friendly jurisdiction.

Hong Kong is perceived together of the simplest cities to determine and run a corporation because it scores high on factors that make a difference to businesses. a number of these factors include:

  • Strategic location
  • Productive workforce
  • Attractive tax regime
  • Pro-business environment
  • World-class infrastructure
  • An effective system
  • The stable economic and political environment
  • These are a number of the main factors that still contribute to its success.

There is something about Hong Kong that draws foreigners from everywhere on the planet to introduce their business in Hong Kong; but what's that thing which makes Hong Kong so attractive and such a perfect place to try business? The Heritage Foundation and the Wall Street Journal have mentioned Hong Kong together of the freest economies of the world.

What’s more? the straightforward legal system, elite location, developed communications and free import and export of products for a business of all industries to succeed and flourish within the Hong Kong economy.

Detailed below are all the questions and therefore the major benefits of fixing business in Hong Kong that demonstrates why Hong Kong is and can remain a well-liked and invaluable jurisdiction.

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Hong Kong is strategically located near China which plays an important role in accessing the Chinese market. Indeed, Hong Kong has taken several measures to position itself as a gateway to China with developments just like the Hong Kong Innovation Circle, that inspires Chinese enterprises to conduct a research project in Hong Kong.

What’s more? Hong Kong’s location is merely a 1-hour drive from the Pearl River Delta, the world’s largest manufacturing zone. This offers Hong Kong access to around 450 million consumer markets in southern China alone.

Word To The Wise: Two-thirds of the worldwide middle class will soon be from Asia. Additionally, to the present, many entrepreneurs are showing interest in the continent from everywhere on the planet. Being within the heart of Asia, Hong Kong is usually the primary choice for entrepreneurs. Last but not the smallest amount, Hong Kong is simply a 4-hour flight from most of Asia’s major regional markets.

With Hong Kong’s Closer Economic Partnership Arrangement (CEPA) with China, it's undoubtedly the foremost business-friendly economy from which to require a hold of Asia’s future opportunities.

Hong Kong is understood as being a simple place to line up a business. you'll find out your company in Hong Kong in around 3 to five days. Hong Kong is additionally regarded for its excellent infrastructure facilities since business premises are easily available. property rights also are taken very seriously, with strict regulations in situ.

Not only this, but Hong Kong also has various dispute resolution channels that companies can use like ADR For Financial Disputes. Also, the business-friendly and the easy legal system draw foreign investors to the town. Foreigners who wish to set-up a business in Hong Kong can easily relocate by applying for an appropriate work visa.

Organizations that incorporate in Hong Kong have access to its developed airport, subway, roads and sea links. Hong Kong’s international airport is the busiest altogether of Asia and therefore the Pacific, handling quite 50 million passengers seasonally and hosting direct flights to over 150 international destinations.

Additionally, general commuting within Hong Kong is concluded to be the simplest within the world by Forbes Magazine as taxis are affordable and conveyance is well developed.

More than 100 international shipping lines operate from Hong Kong, connecting to over 5,000 destinations worldwide. additionally, to the present, a brand-new rail link is within the making, named the “Guangzhou-Shenzhen-Hong Kong Express.” It'll greatly split current journey times between Hong Kong and Guangzhou. On an equivalent token, Wuhan is going to be 5 hours from Hong Kong, and Shanghai is going to be an 8-hour trip.

Taxes and policies are the first concern for any entrepreneur who intends to line up a business in a given jurisdiction. In this case, Hong Kong enjoys the status of being one among the least tax jurisdiction within the world. Thanks to the prevalent business culture in Hong Kong, there is a business-friendly tax and legal infrastructure.

Salary tax or income tax starts at 2% and goes up to 17% for income above HKD 1,20000. Corporate tax is fixed at 16.5% of assessable profits for companies and 15% for unincorporated businesses. Moreover, there's no need for any capital gains tax, nor any withholding on dividends and interest or collection of Social Security benefits. Also, there's no trade tax in Hong Kong.

If you would like to understand more about taxation in Hong Kong, ask our Hong Kong Tax Guide.

Hong Kong offers a highly-skilled, well-educated and trained workforce. The workforce is especially an area talent pool of experienced professionals and entrepreneurs who are known to be well-versed with the growing business culture.

The employees of Hong Kong are generally considered to be hard-working, competitive and are constantly seeking to reinforce themselves. Although English is the most applied language in business settings, you'd be happy to understand that the bulk of the workforce also can communicate with Mandarin and Cantonese, due to the country’s link to China.

Hong Kong has the simplest business support and assistance. An interesting number of associated programs are authorized by the Hong Kong government and therefore the individual (private) sector to assist your company to grow and develop in every aspect of your business.

Also, an outsized number of business support programs and financial incentives to encourage the expansion of SMEs are established. Even the chief organizations, like the Hong Kong Trade Development Council, support international companies to try to do business within the Mainland and Asia and also assist Hong Kong companies to seek out new markets.

The Hong Kong Productivity Council promotes increased productivity and therefore the use of more efficient methods throughout Hong Kong’s business sectors. The Support and Consultation Centre for SMEs may be a comprehensive information and advisory center for SMEs. Financial assistance is additionally available through some noted government funding schemes.

Hong Kong falls into the category of the world’s most dynamic economies driven by 3 major principles, such as:

  • Free enterprise
  • Free trade
  • Free markets

The brute force of the economy over the past 20 years has contributed to the GDP growth at a mean rate of fifty annually.

Currently, there are not any such limitations on outward or inward investments, no foreign ownership, and no exchange controls. Factors like a stable banking industry, almost no debt, a robust system, sizable exchange reserves, and a strict anti-corruption regimen serve to strengthen Hong Kong’s position as a business-friendly region.

Additionally, businesses that are already found out in Hong Kong can now benefit by gaining preferential access to the China Market from the CEPA (Closer Economic Partnership Arrangement) – a trade agreement between the central people’s government and the government of the Hong Kong Special Administrative Region.

All goods qualified as Hong Kong origin could also be shipped to the Mainland tariff-free. Moreover, Hong Kong service suppliers in 40 regions are likely to receive preferred treatment in affording services within the Mainland.

Hong Kong supports liberal immigration policies. The nationals of 170 countries and territories are allowed to enter Hong Kong with no visa from 7 to 180 days. People on short-term visitor visas might conduct business negotiations and sign contracts.

The government has proposed appropriate work visa provisions, assuming the requirements of business entrepreneurs who might want to relocate to Hong Kong to run their company or who may aspire to interact with foreign professionals to figure in their organization.

There are a plethora of policies for the hiring of foreign professionals, employment of Mainland talents and professionals, those hoping to enter for investment and more. Dependent visas allow the holder to undertake almost any sort of legitimate job in Hong Kong.

For more information, ask “Hong Kong Work and Business Visa Schemes.

The incorporation of your business in Hong Kong isn't only a wise decision but is additionally very cost-effective and easy. What’s more? Hong Kong is proudly ranked because of the fourth easiest place to try to do business as per a recent survey by the International Bank for Reconstruction and Development. It takes just 3-5 days to include a Hong Kong company.

Global corporate bank accounts are easily available, and there's no requirement to possess a physical office to finish formation, and business offices also are admissible.

So, what are the wants to make a corporation in Hong Kong? Well, these are

  • You must have a minimum of one director and one shareholder.
  • A copy of the administrators & shareholders’ passport or HKID.
  • A copy of the residential address proof of director/shareholder.
  • A copy of the registered incorporation documents, if the shareholder maybe a company.
  • A Hong Kong company secretary.
  • A completed company incorporation form, which might be provided by Future Perfact Global, with the company’s detailed particulars.

Hong Kong company incorporation is certainly a viable option for nearly any entrepreneur because it requires only a minimum issued capital of 1 share at HK$1.

If you too want to line up a corporation in Hong Kong, then we can help. Request a quote now and provide wings to your business with our top-rated services.