Why Setup a Company in Hong Kong
When it comes to setting up a company in overseas jurisdictions, Hong Kong remains among the top business destination choices. There are many reasons why an investor should consider setting up a company in Hong Kong, and this guide will explore insights into what makes the country such an excellent business destination for set up company in Hong Kong.
Hong Kong has always been considered among the best cities in the world to start a business and set up company in Hong Kong. Here are some of the top reasons as to why you should consider setting up a company in Hong Kong and incorporate your company in Hong Kong.
- Location, Location, Location – Strategic role is a major aspect as to how successful your business will be. Hong Kong is in the most strategic location possible, which is right at the heart of the Asian continent. Most Asia-Pacific markets and Mainland China is just a five to eight-hour flight away.
- 5th Busiest Airport Worldwide – The Hong Kong International Airport is the fifth busiest international airport in the world. With over 100 airlines which service more than 180 destination which include many major cities across several continents, the airport is often ranked Best Airport in the World.
- Doing Business Is Easy – A smooth company incorporation process is what every investor seeks. In Hong Kong, you’ll be glad to know that the country holds a reputation for being an easy place to setup a company. Excellent infrastructure, facilities and business locations are readily available. Hong Kong was ranked 5th as the world’s easiest place to do business, according to the World Bank’s Doing Business 2016 report.
- Support and Assistance Available – For investors who need a little assistance, the Hong Kong government and private sector have established several programmes which help companies grow and improve the different aspects of their business. Financial incentives help to foster the SMEs growth too, once the business has been established.
- An Excellent Tax Regime – Another prime reason which keeps investors coming. Taxes are a major concern for anyone intending to setup a business overseas, but the good news is Hong Kong is renowned for having among the lowest tax jurisdictions in the world. Personal income tax rates start from as low as 2%, while corporate tax is set at 16.5% of assessable profits for corporations. Unincorporated businesses are taxed at 15%.
- A Dynamic and Free Economy – An economy that is driven by the principles of free markets, free trade and free enterprise which is open to all, Hong Kong is the world’s freest economy. This robust and vibrant business hub has no restrictions when it comes to inward and outward investments, no foreign ownership limitations and no foreign exchange controls. Businesses established in the region also have preferential access to the Mainland Chinese market, thanks to the Closer Economic Partnership Agreement (CEPA).
- It’s Transparent and Strong Legal Framework – Hong Kong is well noted for its transparency when it comes to law and order. The country maintains a separate legal system from Mainland China, and in Hong Kong it is the English common law which is used. Hong Kong is also a Special Administrative Region of the People’s Republic of China, where a high degree of autonomy in all matters is done except when it comes to foreign and defence matters.
- It’s Liberal Immigration Policy – Being able to freely move in and out of the country is a big plus for international investors. 170 countries and territories are currently allowed visa-free visits to Hong Kong from anywhere ranging from 7 to 180 days. To conduct business negotiations and sign contracts, short-term visits may be done on the visitor visa or entry permit.
- Robust and Productive Workforce – The country is home to some of best highly trained, well-educated and skilled individuals who make up the country’s workforce. Employees in Hong Kong are generally hardworking and are always eager to improve themselves when the opportunity presents itself. The Hong Kong community is also multi-lingual, where English is used in business settings but a lot of individuals are also fluent in Cantonese and Mandarin.
- Excellent Quality of Life – And then of course, there is the allure of an excellent quality of life, which entices foreigners to relocate with their families. The city is modern and westernised, with a well-connected public transport system and several international schools.
Contact us today for more information about setting up a company in Hong Kong.