HERE’S WHY YOU SHOULD INCORPORATE YOUR COMPANY IN HONG KONG
Hong Kong stands as the easiest place you can use to access Asia. Its low taxes and easy procedures to start an Hong Kong offshore company make Hong Kong an entrepreneur’s haven. For better understanding, consider the following reasons to incorporate your company in Hong Kong:
- Simplicity & Affordability
It takes a couple of days to establish your company in Hong Kong. The procedure is direct and you will only pay incorporation fees to the state unless you opt to hire an agency to assist you with the formation. For instance, you will complete some paperwork to set your virtual office’s address. Even so, these costs are minute compared to the charges of setting up your firm in many other offshore authorities.
Hong Kong permits non-residents and foreigners to totally own and direct companies in the land. Thus. Outsiders must not collaborate with locals in order to set up their companies.
Previously, entrepreneurs were required to visit Hong Kong in order to open their company’s bank accounts. Today however, you can open your Hong Kong offshore account remotely. This makes the process simpler and cheaper.
- Tax System
Non Hong Kong residents delight in setting up their companies in Hong Kong because of the state’s favorable taxation system. You will pay 16.5% of your profits as profit tax as a company but the state will not levy any tax on the benefits that you make from operations that you conduct outside Hong Kong. After all, your home country will demand that you pay taxes. Hence, Hong Kong saves you thousands of dollars annually that would result from double taxation. In addition to the attractive tax rates, Hong Kong’s tax authority permits entrepreneurs to write off a broad type of expenses. You can bet that very few tax authorities will allow you to enjoy this benefit. Nonetheless, you should consult with a qualified accountant on the tax deductions that your business can avoid.
- Global Business Center
Hong Kong prides in the status of the leading business friendly cities globally with free economies. It enjoys economic stability and independent governance. It is among the best places for protecting your intellectual property rights. It glories in competitive tax rates and a hub for businesses. After all, it protects you from conflicting with your home’s tax authorities.
- Budding Startup Ecosystem
Hong Kong features thousands of startups that continue developing rapidly over time. Hong Kong has retained the status of an entrepreneurial city since times in memorial. However, people derived interest and pleasure in traditional sectors back then. For example, traders sough after retail and real estate trades. Currently, entrepreneurs seem to follow the global wave that promotes startups (tech). You will notice this move in the expanse of co-working spaces, accelerators and incubators. If you want to venture in startups, you can get started here and find a list of the same.
Hong Kong is strategically located allowing you to access diverse cities in Asia and China’s mainland. This makes Hong Kong an idyllic choice for multinational businesses that operate across Asia if not on the global market. It perfectly suits e-commerce traders because of the ease of shipping your goods from China. You could also ship items from Hong Kong to any part of the world quite cheaply. In fact, numerous intermediaries and service providers will meet your drop shipping and warehousing needs. The city also introduces traders to unlimited potential trilingual employees. Most of them understand English, Mandarin and Cantonese. Furthermore, you can have your way around Hong Kong when you are only conversant with English.
- Business Support & Assistance
Hong Kong offers top business support. The government authorized a significant number of related programs. Additionally, the private sector will not hesitate to assist you in growing your company. You can count on assistance that will enable your business to flourish in all aspects.
Furthermore, Hong Kong provides numerous financial incentives alongside business support programs. This promotes the development of SMEs. You will love that the locals do not resist competition from foreigners. This is because of the help from governmental and private platforms. In fact, principal authorities like Hong Kong Development Council assist international companies in trading in both Asia and the Mainland. Additionally, they help Hong Kong businesses in looking for and finding new markets.
The effectiveness of this council propels production and the use of futuristic and efficient methodologies in Hong Kong. You can seek for advice and comprehensive information related to your Hong Kong offshore SME from Hong Kong’s Support & Consultation Center for SMEs. Then, look for finances through government funding schemes.
- Great Space To Live
You must strike a balance between your business and personal life. Hong Kong provides numerous unwinding options ranging from remote beaches and hikes to leading dining and nightlife globally. Some Asian cities also offer diverse activities that will suit different people. You can access the latter conveniently through 30-minute ride on public transport.