Most open-minded governments allow foreign firms and capital. Hong Kong allows foreign businesses to own their companies fully.
They can own their corporates wholly or mostly because the holding proportion is unlimited. Private Limited Companies can easily organize up to 50 people.
Firm incorporation in Hong Kong requires one governor and stockholder. Directors need not live in HK. Hong Kong gives a modest share capital of 1 HKD.
1. Favorable tax structure
Hong Kong’s reputation as a “tax refuge” has attracted the attention of numerous investors. The cheap tax rate in Hong Kong is an attractive feature for foreign businesses.
The company profit tax rate in Hong Kong is split into two brackets:
- Taxable income under HK$2 million is 8.25%.
- The percentage of the goal that was surpassed is 16.5%.
Business-friendly assessments are based on the fact that this rate is among the most competitive in Asia, while company taxation in other Asian nations can vary from 17 to 30 percent.
In addition, the Inland Revenue Department (IRD) in Hong Kong provides tax exemptions for overseas profits made by Hong Kong-based companies. Overseas Claim is the name given to this certification, and it is issued in the form of a document that is good for up to five years.
2. Libertarian market and economic system
The Heritage Foundation found that Hong Kong has the world’s freest economy in 2019. Since its honest and open government has enabled unfettered trade and a steady currency, Hong Kong Special Administrative Region (HKSAR) has ranked first for over 20 years.
Retail, trade, producing, advice, and financial asset holding are legal for Hong Kong corporations. Hong Kong businesses can open anywhere monetarily.
Hong Kong has no import tax on anything except cars, booze, cigarettes, fuel oil, and methyl alcohol.
Cargo in Hong Kong’s open port is duty-free. Certain goods shipped to and from Hong Kong require permits, but applying is easy.
Thus, any coin or monetary deal is allowed. According to the World Bank’s 2020 study, these factors make Hong Kong the third-easiest spot to do business. Fintech Harbor Consulting will help you not only open a company in HK, but also with the process of setting up a business bank account.
3. Simple entry into China proper
Hong Kong’s location on China’s southeast coast makes it an attractive business site.
Visit China’s main cities in a day. Hong Kong can join China through the Closer Economic Partnership Pact (CEPA).
Hong Kong helps Asian businesses expand, including Mainland China. HKSAR and ASEAN have had a Free Trade Pact since 2017. (FTA). This is crucial to enhancing their company trade, investment, intellectual property, case settlement, and economic and technical cooperation.
Hong Kong is joining forces with its partner regions to strengthen its standing.
4. Superb facilities on a global scale
Hong Kong is a financial center and Asia’s heart. It is possible to travel to any nation in the region within 5 to 8 hours due to the advanced and well-connected transit systems.
Hong Kong International Airport will remain a top-10 facility in 2022. The world’s most efficient public transit system includes railways, trams, boats, double-deckers, and taxis.
World-class information and transit hub is also here. Victoria Port is one of the busiest ports because its natural conditions allow it to handle many boats.
Hong Kong’s growth is also helped by its world-class Wi-Fi and internet rates. Hong Kong will launch 5G in April 2020.
5. Successful labor pool
To a large extent, Hong Kong’s success can be attributed to its highly educated, adaptable, and active workforce. Since English is recognized as a working language in Hong Kong, locals have a leg up in the global economy.
As a result of its large foreign population, Hong Kong now speaks many different dialects, including French, Japanese, Tagalog, etc.
6. Sustaining a high standard of living
Hong Kong’s many attractions pull wealthy businessmen and newbies despite its status as one of the world’s most expensive cities.
Public travel is competent, affordable, and reliable. Hong Kong’s finance, political, and leisure areas are world-class, making it a coveted spot to live.
Due to the array of food and business goods, people have many daily life options. Hong Kong’s world-class school system also attracts foreigners.