Advantages of setting up a business in Hong Kong
Many investors are electing to set up their businesses overseas, with one of the most popular jurisdictions being Hong Kong. Some of the reasons behind this trend are finding a way to enter an international market and to benefit from tax-friendly jurisdictions. Hong Kong is one of the best cities for establishing and running a business, with high scores on elements that matter to businesses.
Reasons that Hong Kong is recognized as such a successful business center include location, a political environment and economy that are trustworthy, a tax and business approach that are business friendly, a world-class infrastructure and a productive legal system.
Why would you want to choose Hong Kong to set up a business? The following are some vital answers to that question:
- Opening a business in Hong Kong is easy and inexpensive.
- A foreigner is permitted to own 100% of a Hong Kong company, and they are able to be the sole director and shareholder in a Hong Kong company. There are no requirements to be local resident or a specific nationality.
- In comparison to the surrounding countries, Hong Kong provides stability and worldwide recognition.
- In Hong Kong, English common law is prevalent and the legal system is separate from that of Mainland China.
- Hong Kong is commonly seen as the best route to begin doing business in China for Western countries.
- A physical address is unnecessary for Hong Kong. A holding address is adequate.
- Companies in Hong Kong are permitted to open multi-currency bank accounts.
- Hong Kong uses the territorial source principle of taxation, in which profits made outside of Hong Kong are tax-free. Revenue created inside Hong Kong and income tax over 120,000HKD is around 17%.
- Hong Kong is viewed as a global leader in banking and business.
- Hong Kong has held the record for 17 years in a row as the world’s freest economy.
- Ranking ahead of the USA, Germany, Japan and the UK, Hong Kong holds the distinction of being one of the least corrupt nations in the world.
- Hong Kong has a world-class business infrastructure.
- English is spoken as one of the two main languages of Hong Kong (Cantonese is the other).