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).