Are you looking for a smart place to start a business? Or an affordable expansion strategy for your company? Hong Kong business registry offers many advantages to your business.
With its strategic location and vast trading connections with major Asian markets, it’s an ideal place to set up shop.
Have you been thinking about trying to get in on the booming Chinese market? Hong Kong is known as the westerner’s gateway to mainland China.
It remains a favorite place for business owners. Its simple, free system and low tax rates make it a multinational business magnet.
Read on to learn more about the benefits of Hong Kong business registry.
A Brief Look at Hong Kong
The Hong Kong Special Administrative Region of the People’s Republic of China is a self-governed territory off the shore of Guangdong.
It’s got the fourth highest population density in the world. With 7.3 inhabitants, spanning many nationalities.
Hong Kong retains a separate economic and political system from China. They have independent legislative, judiciary, and executive powers except in military matters and foreign affairs.
It’s the seventh-largest market entity in the world, with the world’s highest financial development index. It maintains a top position in rankings for the world’s freest and most competitive economies. The average income per capita is among the highest of the world.
The Hong Kong dollar ranks as number 13 of the world’s most-traded currencies. And other major currencies are traded freely in Hong Kong.
These factors are some of the reasons why Hong Kong company registry is in your best interest. Let’s delve deeper into each main advantage.
1. It’s Cheaper to Start a Business in Hong Kong
Startup and expansion costs can make or break a budding business. This is a common reason for offshore development.
Setting up offshore companies can seem like a harrowing task though. This isn’t the case when it comes to Hong Kong company registry. It’s affordable and easy.
Business owners and entrepreneurs can get financial advice, business consulting, and help getting started. You can obtain a valid address and phone number for your business for an agreeable price.
Setting up a business account is easy.It can get done in a simple one-time appointment which is over quickly.
Cheap accommodation is abundant. You can fly down and back, stay overnight, and set up your bank account, for less than $2,000.
With the right support, your business can be up and running within a few weeks.
2. Low Taxes, Simple System
Hong Kong ranks #1 for economic freedom.
The corporate tax rate in Hong Kong is 16.5 percent. And it’s only applicable to net profits you make in Hong Kong territory. Taxes aren’t le the ied on income you make outside of Hong Kong.
Hong Kong has very simple tax laws. For example, there’s:
- No VAT
- No capital gains tax
- No sales tax
- No accumulated earnings tax
- No withholding taxes on dividends and interest
- No annual net worth tax
- No social security benefit collection
Income tax is applied to net profit.
The local authorities aim to abolish stamp duty on the issue and sales of share and securities in the long run. They also intend to further decrease direct taxes.
You can also get exclusive benefits if you want to invest in mainland China. The Chinese government doesn’t levy taxes on Hong Kong.
It’s easy to see why so many CEOs opt for Hong Kong company registry.
It’s very lucrative for business. Especially if you own an e-commerce company. Any e-commerce transactions made outside Hong Kong territory are exempt from corporate tax.
3. Easy Business
There aren’t any restrictions on foreign ownership of Hong Kong companies. There’s no restriction of business scope either.
Setting up your company can be done in a week or two. From start until it’s up and running.
You’ll have easy access to a skillful, well-educated workforce. In addition to the native Cantonese, many people in Hong Kong speak English and Mandarin. And they’re well-versed in the business norms of relevant mainland cities.
This will be a useful asset, since doing business with China is one of the biggest benefits of Hong Kong company registry. With a 16 percent salaries tax on natives, hiring is easy.
4. Global Business and Banking Powerhouse
High-quality, secure banking is at the heart of Hong Kong’s flourishing business world. Hong Kong banks are multinational and used to handling international currencies.
For example, if you deposit Euro into your account, you can keep it as Euro. You also have the option to get it converted to HK$ or certain other currencies.
Doing business in Hong Kong comes with the ease of transferring cash into different currencies. Learn more here.
5. More Deductions Possible
The tax agencies of many western countries offer the ability to write off personal expenses.
With a base in Hong Kong, you can save a small fortune each year via these tax deductions.
If you’re American, the IRS allows you to write off things like business-related trips, apartments near your business, and dinners with clients.
6. Go Global Without Huge Investments
Taking your business to the global level is, in most cases, a huge and costly ordeal. You want to keep your expenses to a minimum.
Hong Kong company registry allows you to go global at a reasonable cost. This can give you a sharp competitive edge over key rivals.
The aforementioned international banking options provided make it easy to do business across the globe from Hong Kong. The multilingual workforce and means of trade with mainland China make it even better for going global.
7. Location, Location, Location
Choosing a great location for your company is crucial for strong, scalable business.
Hong Kong is a fantastic choice for this reason.
It’s a big international transportation hub, well-connected to many important Asian cities. It’s known as the gateway to China. The business facilities and infrastructure are world class.
It’s the most common route for western companies to start trading with China. It’s a vast, lucrative market you should look into.
Hong Kong Company Registry Service
Let’s do a quick summary.
It’s easy to set up a bank account and start doing business in Hong Kong. The laws are simple and allowing, and the tax rates are incredible. The business culture of Hong Kong is perfect for international business.
It’s affordable to run an offshore business in Hong Kong, and it opens up trading opportunities with China.
Simply put, it’s a cheaper and safer location to base your business.
It’s almost effortless if you get the right assistance. We can help you.