There are many benefits to company formation in Hong Kong. As the business hub, it attracts foreign investors who form a significant part of its economy. The ease and simplicity of the process is also a key attraction for many overseas investors. If you wish to open a business in Hong Kong, you can get all the required formalities done in a brief period.
Companies can be registered in two ways – from the Companies Registry offices and by running a company through the company formation procedure at the Registration Office for setting up a business in HK. It is a fast and straightforward process that also saves on the cost of employing an accountant. Besides, there is no need to register the name of the business since it is self-explanatory. The benefits of company formation in Hong Kong include exemption from income tax, capital gains tax (CGT), property taxes, personal possessions tax, import and export taxes, and other corporate taxes.
If you are thinking of setting up a business in Hong Kong, you must consider company formation benefits. Companies will enjoy many services under the law. Taxation is also kept at such low levels that it becomes easy to attract foreign investment. The local market for many businesses is very lucrative and competitive. It also provides a good platform for foreign investors to promote their products.
Companies are also encouraged to set up their business in Hong Kong because they will enjoy many special privileges. Many foreign governments and agencies offer tax incentives to businesses wishing to establish operations in the country. They are also entitled to enjoy several grants and funding schemes. The free trade area with China is another significant advantage that business owners can enjoy. The government encourages foreign direct investment and retains the hand of the trade and commerce with China.
The British Virgin Islands is one of the most popular locations where most British business houses set up their companies. There is also the option of setting up a Hong Kong business through a simple application called registration of a Hong Kong company. The primary purpose of registration is to ensure that the business meets all the tax payment requirements in Hong Kong.
Another reason for considering a business in Hong Kong is the low rate of taxation. Many countries in Europe and America levy high corporate taxes, but Hong Kong’s rate is only 20 per cent. It is a vast difference from the corporate tax rates in the USA and the European Union. Moreover, Hong Kong company owners do not need to pay any stamp duty or other taxes.
It is possible to obtain a business loan in Hong Kong without meeting a commercial bank’s formalities. Many international banks are increasingly listing companies in Asian country. It has made it easier for foreign entrepreneurs to set up a company and venture into business. Additionally, several Hong Kong banks offer attractive financing terms for small businesses – the terms may include low-interest loans with long repayment periods.
In addition to easy financing options, foreigners are also attracted by the relatively low crime rate in Hong Kong. The city also offers a comparatively, stable business environment. The main trade centres are in the western part of the town. These areas have a more cosmopolitan feel than the areas around the Causeway or Lamma Island. The cost of living in the city is also beautiful, and it is one of the best cities to work in for expatriates from western countries. There is no better place in the world to run a business from it.