Hong Kong has established a reputation for being the most liberated jurisdiction along with Singapore. This makes Hong Kong company registration easy, quick, affordable, and practical.
You can manage your Hong Kong-incorporated business from any location in the world. Because of its enormous potential and ability to help investors break into the global market, the nation has become an attractive option for entrepreneurs.
Advantages of Registering A Company In Hong Kong
Access To China
Hong Kong, which is located on China’s southeast coast, attracts investors with its highly advantageous location.
Cities in China can be reached in a single day. Based on the Closer Economic Partnership Agreement (CEPA) between the Mainland and Hong Kong, Hong Kong plays a vital role as a preferred gateway to Chinese markets.
Hong Kong promotes economic expansion not only to Mainland China but also to other Asian nations. Since 2017, Hong Kong Special Administrative Region (HKSAR) and ASEAN have been members of the Free Trade Agreement (FTA), which is a crucial tool for fostering their relationships in the areas of business trading, investments, intellectual property, dispute resolution, and economic and technical cooperations.
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Ease of Conducting Business
In Hong Kong, you may start a business in around two weeks. It is known for its top-notch infrastructure amenities and accessibility to commercial properties. Strict regulations are in place and intellectual property protection is taken carefully. Businesses have access to a number of dispute-resolution options.
Foreign investors are drawn to the city by the simple and business-friendly tax system. Applying for an appropriate work visa would make it simple for foreigners to migrate and start a business in Hong Kong.
Quality of Life
In Hong Kong, many transportation options are great but also affordable and dependable. Hong Kong has a reputation for being an appealing place to live with efficient public, banking, and entertainment facilities.
Additionally, the variety of cuisines and consumer products offers people a wide range of choices for their daily lives. Furthermore, Hong Kong’s top-ranked global education system is definitely a factor in why foreigners prefer to settle there.
Liberal Immigration Policy
Hong Kong has an unorthodox approach to immigration. For stays ranging from 7 to 180 days, residents of about 170 nations and territories are permitted to visit Hong Kong without a visa. Short-term travelers who enter Hong Kong with a visitor’s visa or entry permit are allowed to sign contracts and conduct commercial interactions.
In order to meet the demands of business owners who might want to relocate to Hong Kong to operate their operations or who might want to engage foreign workers for their company, the government has set the necessary work visa measures. For the employment of foreign professionals, the employment of talents and professionals from the Mainland, those wanting to enter for investment, etc., there are several rules and strategies.
With the exception of international and defense issues, Hong Kong is a Special Administrative Region of the People’s Republic of China and enjoys a great degree of autonomy.
Since Hong Kong is thought to be politically stable, have a pro-business government, and adhere to free market principles, it is where the majority of corporations opt to establish operations.
It is also known for having one of the world’s finest economies. Hong Kong has even established an anti-corruption watchdog, the Independent Commission Against Corruption (ICAC), with the responsibility of addressing corruption in both the public and private sectors.
Hong Kong has a low and straightforward tax system, and an uncomplicated financial management system. In Hong Kong, the personal income tax rate ranges from 2% to 17% for incomes over HKD 132,000. 15% is a comparatively low rate for corporations compared to other nations. In addition, there is no VAT, no capital gains tax, no collection of social security benefits, no withholding tax on dividends and interest, and no collection of social security payments in Hong Kong.
Customs duties won’t be applied to imports or exports for trading companies. Furthermore, neither a value-added tax nor a goods-and-services tax (GST) are levied in Hong Kong. Regardless of whether they are imported or locally produced, four types of items are nevertheless subject to excise duty. The products are methyl alcohol, tobacco, hydrocarbon oil, and alcoholic beverages.
For tobacco, hydrocarbon oil, and methyl alcohol, particular rates per unit quantity of excise charges are applied. On the contrary, the excise duty on alcoholic beverages is assessed at various rates according to the amount of alcohol in the beverage.