As we all know, Hong Kong is one of the most important economic zones in the world, and most foreign investors register companies here for commercial purposes. According to research, 80% of Hong Kong companies are registered as foreign trade, 18% are registered as offshore organizations or brand representatives, and the remaining 2% are composed of other types of companies. This demographic data shows how much legislators in the region help businesses. It seems that most overseas investors setup hong kong company to start a trading business. Here are some advantages of starting your own business in HK.
The biggest advantage of beginning a business in Hong Kong is that China is easier to reach. Hong Kong is located close to Central Asia and a perfect connection between East and West.
Western investors’ atmosphere of trust and strong economic links with ASEAN countries have made Hong Kong the playground of all the world’s ambitious and successful enterprises.
In particular, a common understanding of Western and Eastern world views on business and culture can benefit in numerous ways, and each business owner can gain.
Free Economy and Trade:
At the beginning of 2019, the Heritage Foundation recognized the benefits of Hong Kong as the freest economy in the world. For more than 20 years, the Hong Kong Special Administrative Region has been at the top of the list because it protects freedom of trade and monetary policy while preserving government integrity and transparency.
Hong Kong agrees to establish a Hong Kong company to involve nearly all companies that must of course be legitimate, such as trading, production, e-commerce, consulting, and even financial assets. Without restrictions by the Hong Kong government, Hong Kong corporations can open bank accounts anywhere.
Moreover, products imported into Hong Kong are not taxed, save for cars, alcohol, cigarettes, hydrocarbon oil, and methanol.
Hong Kong is a free port and all export products are exempt from tax and consumption tax. A license is required to transport certain items in and out of Hong Kong; however, the licensing process is not complicated.
Hong Kong-registered companies also benefit from its simple and low tax system, with a corporate tax rate of 16.5% (top-level) and a personal income tax of 15%. When registering a business in Hong Kong, the country has the third-highest taxation, and it does not enjoy sales tax or sales tax, capital gains tax, withholding tax or dividend tax, despite the fact that it provides such a large number of tax benefits. Hong Kong is not considered an international tax haven.
Get Started HK and the developed airports, subways, highways and sea passages. Hong Kong International Airport is the busiest airport in the entire Asia-Pacific region, with a quarterly passenger throughput of more than 50 million passengers and direct flights to more than 150 international destinations.
In addition, Forbes magazine concluded that setup hong kong company are the best in the world because taxis are affordable and public transportation is well developed.
More than 100 international shipping companies operate from Hong Kong, connecting more than 5,000 destinations around the world. In addition, a new railway called the Guangzhou-Shenzhen-Hong Kong Express Line is under construction. This will greatly reduce the current travel time between Hong Kong and Guangzhou. Similarly, Wuhan is a 5-hour drive from Hong Kong and an 8-hour drive from Shanghai.
The offshore company incorporated in Hong Kong maintains a high degree of confidentiality regarding the identity of shareholders and the registration of directors. Hong Kong companies can review the company’s background information, and the law also prohibits trust management companies from filtering relevant information at will.
Free immigration policy:
Hong Kong has a free immigration policy. Citizens from about 170 countries and regions can visit Hong Kong visa-free for 7 to 180 days. Short-term visitors can negotiate and sign contracts upon entry. Hong Kong with a visitor visa or entry permit.
The government established appropriate work visa regulations to anticipate the needs of entrepreneurs who wish to move to Hong Kong to start a business or hire foreign experts to work for their companies.
It has formulated various policies and plans for recruiting foreign experts, attracting talents and professionals from the African continent, and for those who wish to invest.
Political stability is directly related to the investment environment. Although setup hong kong company is a special administrative region of China, it retains its own political, economic and legal systems. Hong Kong is dominated by the rule of law. According to a recent study by the Political and Economic Risk Consultancy (PERC), Hong Kong has become the second-largest bureaucracy in Asia.
See, there is no end to beauty. When you register a foreign company in Hong Kong, you are working in a business environment with one of the lowest tax rates in the world. The corporate tax rate is only 16.5%. In addition, the country has a unique tax system, which means that you only need to tax the profits you earn within the limit. The source does not have capital gains tax, value-added tax (VAT), sales tax, and withholding tax. The personal tax rate is also very low-from 2% to 17%.
Remember that there are several incentives that can further reduce your total tax.
This type of company is suitable for small and low-risk organizations. As the name suggests, this company only involves a sole proprietorship, so it is a legal entity based on a simple Hong Kong business. hole. One of the risks in any situation is that the unique property is not regarded as an isolated legal entity, so the owner’s own interests become the responsibility of the enterprise.
A sole proprietorship is the simplest form of business by which individuals can conduct business. This is a corporate structure in which one person owns the company and is personally responsible for its debts. This is the simplest type of business.Starting a setup hong kong company is easy and requires very few requirements. Once the company name is approved, Hong Kong company registration requires at least one director, shareholder and company secretary. For all citizenship or residence requirements, the company secretary must usually reside in Hong Kong. If the company secretary is a legal entity, its registered office or working place must be in Hong Kong.