Every entrepreneur out there dreams of growing his/her business into a respected and profitable brand with presence across the globe. However, such growth requires you to make bold steps, and the first one is registering your company offshore in a high-potential jurisdiction, such as Hong Kong.
Hong Kong has stood out as the investors’ paradise of all times because of its pro-business policies by its administration. World Bank has ranked Hong Kong at the top of the global Ease of Doing Business Report in the last couple of years, which explains why most of the multinational that we know of today have some presence on the island. So, if you also want to grow your business, it is time to incorporate it in Hong Kong. Here are some of the top benefits to anticipate for opening a business in Hong Kong.
Hong Kong is an International Junction
The first benefit of registering a business in Hong Kong is that it is strategically located in the heart of Asia. Particularly, it serves as the main gateway to mainland China and also acts as a connecting point between the East and West.
Notably, Hong Kong’s robust economic ties with other ASEAN countries and trustworthy environment for investors make it a reliable ground for entrepreneurs from all over the world. So, if you only thought of the Hong Kong market, it will surprise you to realize that growing your enterprise both in Asia and globally is a lot easier.
Straightforward Tax Regime
Notably, Hong Kong practices a low-rate and straightforward tax system, which means that investors can retain the bulk of the profits from their enterprises. For example, your incorporated company is required to pay 8.25.5% and 16.5% corporate tax for the first HK$2 million and over HK$2 million profits, respectively. Besides, there is no withholding tax on dividends and interests.
If most of your company operations take place outside Hong Kong, it is possible to qualify for zero tax. However, make sure to work with a professional accountant to confirm the transactions that qualify for zero-tax.
World Class Infrastructure
Hong Kong is not just a world-class commercial hub; it also boasts of top-notch infrastructure. Simply put – Hong Kong has everything that you want to see in an investment destination. For example, the Hong Kong International Airport was among the top ten busiest airports globally in the first quarter of 2019. Hong Kong’s roads, broadband internet connectivity, and ports are also excellent.
Foreigners Can Own 100% of their Hong Kong Companies
Many jurisdictions out have a lot of restrictions on company ownership, and they try to encourage foreigners to enter into partnerships with residents, but it is different in Hong Kong. Here, foreigners are allowed to own 100% of the company’s shareholding. Indeed, a foreigner can also be a sole director and a shareholder in a company registered in Hong Kong.
The above benefits have made Hong Kong a magnet for investors, and you should not be left behind. To make your company registration in Hong Kong easy and fast, you should consider working with an expert agency. A good agency can help you to prepare the required documents and provide the support your company needs, especially during the early days of establishment.