Compelling Reasons to Start a Business in Hong Kong
Hong Kong is one of the most flourishing business destinations in the world today. Not only that, the city’s fast-growing reputation as a global trade powerhouse is also well-known. It is not surprising that starting a business in Hong Kong is getting popular all over the world.
Starting a business in Hong Kong enjoys high growth rates and a low inflation rate, making it a preferred investment choice by global companies and multinational companies. On top of that, the low-cost jurisdiction plus the highly developed financial system combine to entice international investors to Hong Kong. Here are some more reasons why you ought to start a business in Hong Kong right now!
Low taxation rate. Hong Kong has one of the lowest tax rates globally, making it a desirable international company location. Moreover, its low combined tax rate with the continually improving living standard and transport facilities makes it desirable to invest. Moreover, the low blended tax rate is made possible by the ‘one country’ policy which guarantees free passage for foreign investments, allowing them to enjoy the same advantages as local entrepreneurs.
Strategic location. In addition to the low taxation rate, many international investors are attracted to the rapidly growing economy of Hong Kong because of its strategic location on the harbour region of the Chinese River. The area provides access to major global trading centres such as Beijing and Shanghai. The site also offers access to the East and West coast Chinese ports, making it a trade hub and a residential housing estate centre. These factors have resulted in Hong Kong becoming a popular investment destination both for Chinese company owners and foreign investors. Due to the fast-growing economy and thriving real estate sector, Hong Kong has become a popular choice for setting up a new home for a foreign company or resident looking for a haven.
Low cost of doing business. Starting a business in Hong Kong is comparatively low compared to other Chinese cities such as Beijing and Shanghai. Consequently, many foreigners willing to invest in China are eager to do so in Hong Kong because the profit margins are higher. The government’s low tax system attracts more foreign direct investment. Besides, Hong Kong enjoys low taxation rates on property purchase and sale, and the local legal system is easy and efficient in settling commercial disputes.
Trouble-free business registration process. The difficulty in starting a business in Hong Kong begins with the cumbersome and time-consuming business registration process. Before you can even get your business license, you mustfulfil the Basic Functionaries Test (BFT) requirement for a foreign manager or employee and pay a one-time registration fee of $300. The next step is to obtain an Employer Identification Number (EIN) from China’s Insurance Corporation (ICC).
Contrary to popular belief, there are very compelling reasons for investing in China – your business won’t suffer should you relocate to another location. Opening a bank account in China is not difficult. Your business can register its name on the State Financial Supervision Agency’s website and access an active bank account with a corresponding password for a minimum fee.
No capital requirements. Business owners in Hong Kong can enjoy the benefits of instant capital market access, which includes electronic funds transfer by opening an offshore bank account. After opening an offshore bank account, the next step is to choose a registered office within the Chinese territory to conduct business. Together with the EIN and the foreign exchange quotation of a local currency price, this registration process will facilitate the smooth opening and working of your business in China – making it easier to earn a more significant profit.
starting a business in Hong Kong