Hong Kong is a global powerhouse when it comes to business, so let’s look at the reasons why you should start a business there.
Set Up a Business Quickly
It is known to be quick and efficient when starting a business in Hong Kong. Furthermore, the costs associated with registering a business are low and there are no restrictions on inbound or outbound investment either.
Simple Tax System
The tax system in Hong Kong is extremely simple and easy to understand. There are three direct taxes to consider as well as generous allowances and deductions. The three taxes are:
- Two-tiered tax profits which is 8.25% for the first HK$2 million which increases to 16.5% for anything above this amount.
- Standard rate of 15% for salaries tax
- Property tax is 15%
You won’t have to worry about sales tax or VAT either while all profits made from within Hong Kong or abroad are taxable.
Hong Kong is a free market with low taxation and while port trade is almost free. Furthermore, there are no tariffs on imported goods while excise duties apply to only four commodities which include hard alcohol, tobacco, oil and methyl alcohol. Out of 186 economies, Hong Kong is considered to be the second freest economy in the world.
Simple Access to China
Hong Kong has a strong relationship with China as well as the Greater Bay Area. As far as foreign investment goes and offshore capital, China is the leading country when it comes to investing in Hong Kong. What this means is that businesses have access to a large market and investment opportunities.
Solid Legal System
The legal system is strong and robust with a long-established institutional framework that ensures judicial independence that is set out in basic law. The courts have highly respected judges who are capable of handling a wide range of cases including commercial and criminal cases.
The infrastructure in Hong Kong has been designed to meet the needs of the population and this helps the economy to thrive and grow. The transport system and communication is perfect for businesses while it continues to invest in high-speed internet, helping businesses to remain connected.
Hong Kong is perfectly located as it is in the centre of Asia. This means that the key markets are just a four-hour flight away and that makes it perfect for businesses looking to set up their sales, operations and regional headquarters there.
It also welcomes foreign investment with no policy in place to protect the local industry from competitors from overseas. Furthermore, English is the language of business in Hong Kong and that helps to attract the right talent.
Government Supports Innovation and Technology
As Hong Kong is one of the most competitive cities in the world, the government continues to support innovation and technology. The government has committed HK$100 billion to help to develop certain areas such as artificial intelligence and robotics. Furthermore, the government also supports startups, investing millions into new businesses.
A Financial Platform That’s Competitive
The financial platform in Hong Kong is highly competitive and the banking system is pivotal when it comes to business, making it the largest banking hub in Asia. It is home to more than 200 banking institutions and advancements in technology ensure that Hong Kong leads the way when it comes to smart banking.
High-Quality Living and Business Friendly Immigration
Hong Kong boasts business-friendly immigration policies as well as visa-free entry for people from more than 170 countries. Short-term visitors can take advantage of simple visa policies and those who want to live or work in Hong Kong will need to apply for a visa, of which there are several to choose from.
Register your Hong Kong company today!
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