Why Start Business in Hong Kong?
When it comes to setting up a business, an entrepreneur considers various factors to ensure if they will be able to run and manage their business without any barriers. Amongst many locations, Hong Kong is recognized as the world’s leading business center owing to its excellent location, business-friendly taxation policies, good infrastructure, and competitive workforce.
Hong Kong incorporation is the easiest in the world
The government has a strong support system and has established bodies to ensure easy registration of companies in the city. One can fulfill the basic requirements and register themselves as early as 5 days for setting up a new business.
Once you initiate the business, a plethora of opportunities is likely to benefit you whether it’s real estate, trading, or any other growing sector.
For those who are looking for a crime-free, safe, and corruption-free place to run their companies, Hong Kong is the ideal location. The strong legal system ensures that businesses and individuals are protected against all hassles for higher growth and productivity.
The city has a great repute for being the world’s freest economy for the past 25 years. Its location makes it an ideal gateway to deal in the Chinese markets.
Get Started HK can help you in setting up your business here
The countless benefits
Hong Kong offers a wide range of benefits to its investors. Some of the key benefits include:
A tax-friendly economy
Unlike other countries, China has ensured easy taxation policies for foreign investors and businesses. Hong Kong does not require you to pay any sales tax or withholding tax. In order to further improve and make its economy tax-friendly, Hong Kong has signed more than 30 double taxation agreements.
The salary and property tax is capped at 15 percent. The import, export, and capital gains tax is also exempted as Hong Kong is the founding member of the World Trade Organization.
Ideal destination/ strategic location
The strategic location of Hong Kong allows businesses to access the Chinese markets with great ease. The city is compared to New York and London in terms of business successes. Its closeness to the Pearl Delta River, which amounts to 30 percent of China’s exports is an added advantage. The HK airport allows you to access major trade jurisdictions around the country in less than 6 to 7 hours.
The upgraded infrastructure includes world-class transportation, IT connectivity, telecommunication, and logistics facilities. Hong Kong is ideal for businesses that are on the outlook for efficient transport of products, goods, or personnel. The infrastructure is updated and improved regularly to ensure smooth business activity.
Hassle-Free Set up
The government has straightforward rules and regulations which are mainly focused on facilitating entrepreneurs to set up businesses without complicated paperwork and documentation. The law, transparency, and efficient policies are central to Hong Kong’s success as a business hub. One has to select an appropriate business structure before starting the business and avail of all benefits of the business-friendly options the city is offering.
The registration process involves much fewer complications than other Asian business centers. You have to fulfill basic requisites such as a Hong Kong resident company secretary, a director, and Hong Kong corporate bank account. You do not need a physical setup, a virtual office is the easier alternative.
Opportunity to Invest in a Wide Range of Sectors
Due to the business-friendly environment, a number of sectors are thriving and laying out opportunities for investors.
The developing sectors of Hong Kong are:
(i) Information & Technology
(iv) Education and learning
(v) Professional services
(vi) Financial Technology
(vii) Data analysis
Well Equipped Work Force
Hong Kong has a pool of talented human resources who are trained and well educated to perform in the competitive business environment. Foreign talent is also welcomed in the city and the easy immigration policies enable the people to settle along with their families.
The employees are offered additional tax benefits and are open to various growth opportunities. You can find the right fit for your company amongst the locals as well.
Ideal Political and Social Environment
The city endorses a corruption-free and safe business environment with a key focus on legal facilitation for businesses. The law of the city makes it the 13th least corrupt country to pursue businesses. The social and political environment of HK is highly stable and highly popular amongst businesses.
It has a multicultural environment and is welcoming towards international investors and talent.
Hong Kong Dollar Ranked #8 of Most-Traded Currency.
Hong Kong focuses on a stable external exchange value of the currency of Hong Kong, the businesses can be sure of currency stability.
Hence, by fulfilling the basic requisites of setting up the business in the world’s best location, you can have long-term benefits. Hong Kong is the world’s biggest Renminbi. Also, The Stock Exchange of Hong Kong (SEHK) comprises 1673 companies which had generated a total of HK$3,833.4 till May 2014.
The government has several funding schemes for SMEs and laws in line to protect investors and business owners from all types of scams. By running a business in a tension-free environment, you can focus well on the growth opportunities and save yourself from heavy taxes, complicated compliance issues, skyrocketing tariffs, and import-export taxations.
Even if you plan to have a small set up in Hong Kong, the returns can be great since its location gives you the advantage of moving around in the Chinese markets conveniently. Businesses such as of toys, bags, cell phones, and tablets have gained immense popularity in recent years.
The exact business plan can be discussed with an expert who can guide you step by step to understand the basics and get your company to establish and operate smoothly.