Hong Kong is a worldwide business center with a sophisticated commercial infrastructure. With easy access to mainland China and other nations in the region, the city is a good site to base your company if you are trying to expand into Asia. Also, the incorporation of Hong Kong company provides numerous tax advantages to overseas corporations that establish a corporation there.
Hong Kong is one of Asia’s most intriguing commercial opportunities.
Kong has been a gateway for Western companies to China for decades, allowing them to reach into this vast market without the restrictions or paperwork required by mainland China. In fact, many Hong Kong businesses have been able to grow into multi-national corporations without ever setting foot in China itself!
Hong Kong has also become an important financial center within Asia, as well as being home to some of its largest banks and insurance companies. It is easy to set up an account with one of these institutions if you need access to credit lines or funds while operating your new company there (or if you want help managing your money).
Benefits of rates
Hong Kong’s corporate tax rate is 16.5%. The country also offers a preferential income tax regime for non-residents who are not engaged in business activities in Hong Kong but have interests in a Hong Kong company. Under this regime, you may pay only 16.5% on your dividends instead of 20% if you were resident in another jurisdiction (for example Singapore). This means that if you invest $1 million into a local entity with an annual profit before interest and taxes (“PBIT”) of $100K, then after paying out $16K as dividends (20% x 80%), your net capital gain would be:
$100K x 1 – $16K = $84K
Join Our Small Business Community
Get the latest news, resources and tips to help you and your small business succeed.
With your freshly established Hong Kong company registration, you will also have easy access to regional markets.
Once you have established your Hong Kong company registration, you will also enjoy easy access to regional markets with your newly established Hong Kong company registration.
Hong Kong is a gateway to Asia, offering an ideal location for companies looking to expand into emerging markets in the region. As one of Asia’s leading financial hubs with a strategic location and favorable tax regime, it offers businesses the opportunity to tap into these lucrative markets and become part of this fast-growing economy.
Hong Kong has a low corporate tax rate and preferential income tax rate for qualifying entities (i.e., those whose business activities are mainly carried out within Hong Kong). In addition, there is no withholding tax on dividends payable to non-residents if they meet certain conditions specified by law; these include being an eligible investor under the Securities Investment Funds (SIFs) Scheme or having received approval from The Securities Industry Council (SIC) before making any investment in SIFs listed companies’ shares/units issued through an approved fund manager on their behalf through either direct subscription or indirect access arrangements such as unit trusts/mutual funds etc., which may include but not limited only those holding more than 50% shareholding interest within such companies’ equity capital stock market price when signing up contracts related thereto;
Incorporating in Hong Kong can let you develop your firm beyond mainland China’s capital limitations.
Hong Kong is one of the most important business hubs in Asia. With a population of 7 million people, it’s Hong Kong’s second-largest city after Kowloon.
Hong Kong has a low corporate tax rate at 16%, which makes it an attractive place to incorporate your company if you want to expand beyond mainland China. It also has a preferential income tax rate for international companies with no withholding tax on dividends payable to non-residents and easy access to regional markets through its free port status and free trade agreements (FTAs). You always can use the best bank in Hong Kong.
Foreign enterprises wishing to develop their operations in Asia can consider Hong Kong. It provides a strategic position, access to regional markets, as well as significant tax advantages and cheap corporate costs. If you are thinking of incorporating in Hong Kong, our experts can help you through the procedure so that everything goes well!