Reasons to Set Up an Investment Holding Company in Hong Kong?
Your decision where you choose to establish your business could mean the difference between failure and success. So, why would you choose to set up an investment holding company in Hong Kong? When choosing the perfect location for your investment holding company, several factors must be considered. From a business standpoint, you want a country with comparatively low tax regimes. Ideally, that location should also have a stable, strong government and financial system in place. A supportive administration certainly helps, along with low costs and low-risk involvement.
With those factors in mind, one country in Asia has managed to set itself apart from the crowd. With China and Taiwan recently joining the World Trade Organisation, there’s even more reasons to set up an investment holding company in Hong Kong.
The Ideal Investment Holding Company Hub
Investors have always been keen to get a foothold in South East Asia. Hong Kong is one of the many pathways towards making this a reality. Its immensely strategic location allowed the government to turn this island into a bustling business hub. Although close to Mainland China, Hong Kong operates independently. Over the years, it has become the ideal business environment, particularly for offshore companies.
Among the many reasons why investors are turning their eyes towards establishing investment holding companies in Hong Kong include:
When you set up an investment holding company in Hong Kong, you get the best of both worlds. After incorporating a holding company in Hong Kong, investors have a simpler time doing business with Mainland China. Setting up a subsidiary or a trade with China is easier, and Hong Kong-based companies are given preference over others.
Easier to Get into China
Especially if you’re a foreign company. If your long-term goal is to penetrate the Chinese market, an investment holding company in Hong Kong is your key.
Easy Hong Kong Company Incorporation
Setting up an investment holding company in Hong Kong should only take 2-weeks. That’s 14 business days before you’re ready to start full operations. As long as you’ve got your relevant documents in order, the Hong Kong company incorporation process is straightforward and easy.
Hong Kong’s Tax System
Unlike many countries, the Hong Kong tax system wants your business to succeed and grow. It wants your business to expand quickly both regionally and globally. Set up an investment holding company in Hong Kong and expect to pay only 16.5% taxes on profits generated locally. If your business is structured properly, there’s even better news. Your business might be eligible for 0% taxes if profit is derived elsewhere.
No Vat, Capital Gains and Sales Tax
Even more reasons why you should set up an investment holding company in Hong Kong. You get to keep all the proceeds earned from your company’s dividends. There’s no capital flow restriction either. What does this mean for investors? It means you should have no problems earning large profits and moving significant sums of money.
Stable Tax Regime
Compared to a lot of countries, Hong Kong’s tax regime is stable. The country abides by the Common English law, which is good news for investors. English Common Law is exceedingly pro-commerce, which is good for your investment holding company in Hong Kong.
Facilitate, Not Interfere
The Hong Kong government facilitates without interfering, which is why the country’s economy continues to thrive throughout the year. Combined with its robust financial system, there’s no better place to set up an investment holding company than Hong Kong.