Hong Kong Incorporation Advantages

Oday, many investors and entrepreneurs are deciding on to set up their businesses foreign places – especially in jurisdictions like Hong Kong. The intent behind this trend is to in the main facilitate access into an worldwide market and to benefit  香港相睇 f rom tax friendly jurisdictions.

Hong Kong is considered as one of the nice towns to establish and run a business, as it rankings high on factors that be counted to agencies. Below are some of the elements that maintain to make a contribution to its fulfillment:

strategic region
efficient paintings-force
stable financial and political surroundings
appealing tax regime
pro-business environment
world-elegance infrastructure
an effective legal gadget
Ranking Category Hong Kong’s Rank Source
World’s exceptional monetary machine 1 World Economic Forum: The Global Competitiveness Report 2019
World’s exceptional worldwide economic centre 3 (1 in Asia) The Global Financial Centres Index 25 2019
World’s leading funding hub for FDI (Foreign Direct Investment) inflows in Asia 3 United Nations Trade and Development (UNCTAD): World Investment Report 2020
Best place for IPO and M&A hobby in Asia-Pacific 1 Baker Mckenzie & Oxford Economics: Global Transactions Forecast 2019
Detailed below are some of the key advantages of setting up a enterprise in Hong Kong and will serve to offer you with the answers to the question “Why pick Hong Kong to set up a enterprise?”.

To study the way to setup a organization in Hong Kong, please consult with Hong Kong Company Setup guide.

Business registration certificates

Strategic Location
Hong Kong is strategically located at the heart of the Asian continent. A five-eight hour flight will connect you to most markets inside the Asia-Pacific region.

If you need to faucet into the Mainland Chinese market you will find that Hong Kong is perfectly situated on the southeast coast of Mainland China, flanking the mouth of the Pearl River Delta. This facilitates travel to and from Hong Kong to Beijing, Shanghai and different principal Chinese towns inside a single day.

The Hong Kong International Airport (HKIA) is the eighth busiest worldwide passenger airport with a hundred airways servicing over one hundred eighty locations, such as foremost cities inside the Asia Pacific, North America, Europe and the Middle East and to approximately 40 locations in mainland China.

Cross-boundary ferries offer fast sea transport to and from six mainland ports and the coach service covers greater than ninety PRD cities and towns. The HKIA is regularly ranked as the ‘Best Airport inside the World’ and continually receives accolades and awards. Hong Kong is also a focus of all maritime activities in southern China and is one of the important ports of the sector in phrases of tonnage of transport the usage of its facilities, shipment treated and the wide variety of passengers carried.

Ease of doing enterprise
Hong Kong is renowned for being an clean region to set up a business. You can open your corporation in about week’s time in Hong Kong.

It is noted for its wonderful infrastructure centers and business premises are without difficulty to be had.

Intellectual Property Protection is taken significantly, with strict rules in region. There are diverse dispute resolution channels that organizations can avail of.

The simple and business friendly tax gadget draws overseas buyers to the metropolis. Foreigners who desire to setup enterprise in Hong Kong can effortlessly relocate with the aid of making use of for the appropriate work visa.

Ranking Category Hong Kong’s Rank Source
Ease of doing enterprise ranking 3 The World Bank’s Doing Business 2020 Report
World’s commercial enterprise surroundings ratings 4 The Global Financial Centres Index 25 2019
Best international locations for commercial enterprise 3 Forbes lists, 2019
World’s fastest place to start a business five World Economic Forum: The Global Competitiveness Report 2019
Global competitiveness 3 World Economic Forum: The Global Competitiveness Report 2019
Attractive Tax Regime
Taxes are the main challenge for any entrepreneur who intends to set up a business in a given jurisdiction. In this regard, Hong Kong boasts of being one of the lowest tax jurisdictions inside the international.

Personal income tax, or revenue tax as it’s far recognised, starts at 2% and goes as much as 17% for income above HKD two hundred,000.

Corporate tax is ready at sixteen.5% of assessable earnings for corporations and 15% for unincorporated organizations. In Hong Kong, organizations have two options for Profit Tax Rates:

Single-Tier Corporate Tax System – The Single-Tier Corporate Tax System-corporations are taxed at sixteen.Five% on assessable profits and unincorporated groups are taxed at 15%.
Two-Tier Profits Tax Regime – The Two-Tier Profits Tax Regime applies to both corporations and unincorporated agencies by way of lowering the tax fee for the primary $2 million of assessable earnings.
There is no capital profits tax, nor any withholding tax on dividends and interest or series of social safety blessings.

Furthermore, there may be no sales tax or VAT in Hong Kong.

For more facts on taxation in Hong Kong, refer to Hong Kong Tax Guide.

Ranking Category Hong Kong’s Rank Source
World’s lowest tax jurisdictions 1 The World Bank’s Doing Business 2019 Report
World’s maximum enterprise-friendly tax device 1 PWC & The World Bank Group: Paying Taxes 2019
World’s freest economic system
Hong Kong is one of the global’s most dynamic economies driven through the ideas of unfastened organisation, free change and loose markets open to all. The sturdy financial system over the last a long time has contributed to the GDP increase at a mean annual rate of 5% in actual phrases.

There are not any regulations on inward and outward investments, no foreign exchange controls and no overseas ownership regulations.

Factors including a valid banking gadget, almost no public debt, a sturdy legal device, extensive forex reserves and a strict anti-corruption routine serve to strengthen Hong Kong’s function as a enterprise pleasant location.

Furthermore, organizations that are set up in Hong Kong (i.E. Any Hong Kong corporation regardless of nationality) can now benefit via gaining preferential get entry to to the Mainland China marketplace from the Closer Economic Partnership Arrangement (CEPA) – a loose exchange settlement between the Central People s Government and the Government of the Hong Kong Special Administrative Region.

All items certified as Hong Kong foundation can be exported to the Mainland tariff unfastened. Moreover, Hong Kong carrier providers in 40 areas are eligible to obtain preferential remedy in providing services inside the Mainland.

Ranking Category Hong Kong’s Rank Score
World’s freest Economy 1 Index of Economic Freedom, 2019
World’s maximum aggressive financial system 5 (2 in Asia) Swiss-based International Institute for Management Development (IMD): World Competitiveness Yearbook 2020
Business Support & Assistance
A variety of programmes had been set up with the aid of the Hong Kong authorities and the non-public quarter to assist your organisation develop and improve in every thing of your commercial enterprise. A quantity of enterprise assist programmes and financial incentives to foster the growth of SMEs were hooked up.

Organisations together with the Hong Kong Trade Development Council help global companies do enterprise in the Mainland and Asia, and additionally resource Hong Kong organizations discover new markets.

The Hong Kong Productivity Council promotes accelerated productiveness and the use of greater green techniques at some point of Hong Kong’s business sectors.

The Support and Consultation Centre for SMEs is a comprehensive facts and advisory centre for SMEs. Financial assistance is to be had via a number of Government Funding Schemes.

Leave a Reply

Your email address will not be published. Required fields are marked *