Advantages of Incorporation in Hong Kong

Advantages of Incorporation in Hong Kong

Hong Kong had also ranked as the 2nd best place in the world to start a new business. This has essentially been due to the city's strategic location and the strength of its liberal economic policies, which listed as follows:

Tax:

Clients can register a limited company in Hong Kong in one week with a share capital of only USD 1.

Clients starting a business in Hong Kong will require only one director and one shareholder. Furthermore, these individuals are not mandated to be residents in the city

A Hong Kong company is legally tax exempt if the entity has no customers and no suppliers within the city

For resident companies, the corporate tax rate is among the lowest in Asia at 16.5%

Setting up an Hong Kong offshore company is an excellent way to boost global profits as there are no withholding taxes, sales tax, VAT, import and export taxes and capital gains tax levied on the profits

A business based in Hong Kong benefits from 34 international double tax treaties that the government has signed to minimize withholding tax on payments abroad.

Business Environment

Hong Kong is one of the world's most dynamic economies driven by the principles of free enterprise, free trade and free markets open to all. The robust economy over the past two decades has contributed to the GDP growth at an average annual rate of 5% in real terms. There are no restrictions on inward and outward investments, no foreign exchange controls and no foreign ownership restrictions.

A Hong Kong business is an efficient vehicle, which faces minimal corruption, restrictions, and red tape. Consequently, the city is ranked as the 2nd best place in the world to start to a new business;

English is the official business language in Hong Kong; all formal company documents written in both English and Mandarin. As a result a foreign entrepreneur is likely to find that working in the city is easy;

Obtaining bank credit is very easy. Consequently, the city is ranked 4th best place in the world to obtain credit for business

A Hong Kong business benefits from the absence of exchange controls to restrict FDI, currency accounts or repatriation of capital, and earnings

It is possible for a resident, regardless of nationality of the owner, to invest in every business sector in the city without any government restriction

Along with Singapore, Hong Kong is the leading financial centre in Asia. The city's International Financial Centre hosts many global financial firms, insurance companies, banks and asset management firms

Hong Kong is entirely a free economic zone in itself; therefore, a resident limited liability company is a great business vehicle for foreign investors who intend to use the city as a regional distribution base or headquarters.

To becoming a founding WTO member, Hong Kong promotes free trade and does not charge tariffs on imports and exports. Furthermore, bureaucratic procedures like licensing and government registration are kept to a minimum

The local government has also ranked as the 14th least corrupt place in the world; this makes it easier for foreign investors to depend on the local laws to protect their assets.

Hong Kong business portrays a positive image and is, hence, an excellent corporate vehicle to promote the company to global customers, suppliers, investors, venture capitalists, governments, and banks.

Legal Environment

The rule of law is fundamental to Hong Kong's success. All are equal before the law. Hong Kong's legal system is separate from Mainland's China, and English common law prevails. Hong Kong has developed into one of the the world's major arbitration jurisdictions since establishing its International Arbitration Centre in 1985. Hong Kong has the lowest crime rates in the world and safe cities to live in.

Hong Kong has been taking measures to upgrade their infrastructure in order to meet the growing demands of business. Hong Kong's region is the Best Airports and Busiest Ports in the world. Transportation services are efficient and cheap connecting all major centre in the respective regions. Hong Kong is vying with each other to become the preferred Exhibition and Convention Centre. Furthermore, it has seen the growth of sizable industrial and business parks.

Hong Kong's telecommunications infrastructure is one of the most technically advanced in the world. Hong Kong's open market ensures there are several competitive mobile phone and Internet service providers.

Gateway to Asia

Hong Kong is the top choice for product distribution within Asia. The city has the world's 2nd best infrastructure in the form of a natural deep sea port, busiest cargo airport, a well-developed rail and road system

The city's strategic location makes an ideal business gateway to Asia. A Hong Kong corporate entity allows foreign entrepreneurs easy access to the massive Chinese, Indian and Australian consumer markets

Hong Kong banks offer multiple currency personal and business bank accounts, including Japanese Yen, the Euro, US dollar, and other major currencies.

The city is the historic import and export hub of the Asian continent. A large number of international trading companies and banks are based which provide excellent trade finance facilities. Furthermore, strength of the city's shipping and transportation sector attracts the world's leading freight forwarders and shipping and insurance companies;

The city has deemed as the most business friendly city in Asia. The city's liberal policies attract both foreign investors and qualified labor from across Asia. Furthermore, it is the most preferred venue for international exhibitions and conferences.