Why Hong Kong Attracts Tourists and Business Owners?
Hong Kong has an appeal which attracts many in terms of living and doing business. What’s the pull that keeps us coming back for more? Offering various benefits that are unique, it is the ultimate destination for tourists and business owners alike. Among them is the strategic gateway to growing markets in Mainland China, a regional financial and logistics hub for expansion across Asia as well as a stable, highly-efficient and business-friendly cosmopolitan.
Company Registration and Business Licenses
First is the simplicity of the company registration and compliance. In Hong Kong, the best vehicle for business ventures is the Private Limited Company commonly known as “Limited Company”. Starting a limited company comes with benefits. The first is the liability of the company is limited to that of the company. The owner isn’t liable for the debts incurred by the company. There is also no restriction on the nationality of the business owner. This means that anyone from anywhere in the world can register a Limited Company in Hong Kong. Besides that, you can also register a Hong Kong Limited Company online. A physical presence of directors or shareholders is not required. However, there is a requirement for a local office address and a company secretary. This can easily be resolved by hiring a company service provider. Next is the ease of obtaining business licenses. Your company’s business nature can be described on the company registration, plus you’re not bound to do this after incorporation. The nature of some businesses intervenes with public interest which will require special license to operate. This does not extend to trading and consultation businesses.
Tax Regime, Banking and Finance Ecosystem
Besides that, Hong Kong also offers a simple and low tax regime. There are three (3) kinds of direct taxes implemented in Hong Kong. The profits tax is for incorporated bodies, salaries tax is for your personal income and property tax is for income sourced from Hong Kong property. Only incomes sourced locally are taxable because they adopt a territorial basis of taxation. Hong Kong doesn’t implement most of the common taxes such as sales tax, VAT, dividends tax, withholding tax, capital gains tax, or estate tax. It also has a well-developed banking and finance ecosystem. They practice the three-tier banking system. Hong Kong has a vast network of finance institutions from various different countries. Without exchange control, this helps it maintain an active and mature foreign exchange market.
Hong Kong is also known for its status as a free port in oversea trading business. Duty is only paid on certain products. Also, the import of wine and beer has been made duty free, this has resulted in an attractive wine import, export and storage business serving retail and individual buyers. On top of that, it is also strategically located in Asia. If you’re looking to grow a business in Asia and Mainland China, Hong Kong is the perfect location to start. Many business cities like Beijing, Shanghai, Singapore, Taipei, Manila, Kuala Lumpur and Perth share the same time zone as Hong Kong while Bangkok, Jakarta, Seoul and Tokyo are within one hour’s difference. It is also a free business environment. Since 1995, Hong Kong has the freest economy in the world for 20 years in a row according to a study held by The Heritage Foundation. This is because of its open markets, rule of law and limited government spending.
Another good point is that Hong Kong has a corruption-free government. Hong Kong is one of the “clean” business cities around the world based on the Transparency International’s Corruption Perceptions Index 2013. The Independent Commission Against Corruption (ICAC) proactively fights against corruption. Since 1974, it is a legally empowered law enforcement body that was given the power to investigate and make sure the corrupt are controlled. Hong Kong also has world-class public transportation. Hong Kong is a city packed with over 7 million population and over 380000 registered private vehicles, it may not be advisable to cycle. However, we have the ever-growing public transportation system to serve over 11 million busy passengers every day.