Why Hong Kong is Your Essential Business Hub
Contributed by SFM Offshore
30 April, 2018
Hong Kong has always been a popular business centre for incorporating new businesses. Once a centre of the British Empire and now part of modern China, it has kept its multicultural and bilingual status. Add to that a robust and modern legal and corporate framework pegged to the US Dollar, there are many reasons to begin or continue to use Hong Kong as a base of global operations.
It's Perfect for Start-Ups
According to 2016 data, Hong Kong is home to 2,500 start-ups. Some 43% are foreign-owned. The industries are diverse too, representing sector-specific businesses and some well-known multinational Venture Capital businesses. Others are drawn to the incredible array of grants. For example, Hong Kong Science and Technology Park makes available $110,000 (US) to relevant ICT, biotech and engineering start-ups. Similarly, Cyberport offers a maximum $42,000 (US) for innovations developed in Hong Kong. That's vital funding for growth in competitive markets.
A Solid and Prestigious Location for Corporate Activity
New tax rules have just opened up opportunities for some of the world's largest entities â corporations and institutions alike. This is made available through the Corporate Treasury Centres allowing some of the world's largest corporate entities to benefit from a much lower tax rate of just 8.25%; the standard rate is 16.50%. With this reduced rate, corporations can leverage a wide range of choices for financing operations in Hong Kong that will enable them to fund expansion across the Asia Pacific.
A Great SME Culture
There is active support for SMEs to attend trade fairs across the world to develop their business. It's offered through Export Marketing Fund of the Trade and Industry Department. Superb support exists too for local trade fairs and exhibitions to target foreign investment. As a qualifying SME, you will be entitled to reimbursement up to 50% of your costs for attending such events. There is a large cap on this valued up to HKD 200,000, working out around USD 25,000. Recently, internet promotions became available for Export Marketing Fund too.
Still Attractive for Established Businesses
Hong Kong is attractive for its tax philosophy. Profits made offshore are not charged the Hong Kong Profits Tax. Of particular note here is that Hong Kong holds over 30 Double Taxation Agreements with European countries such as France, Italy, Luxembourg, Liechtenstein, Netherlands, Spain and EEA member Switzerland, but also with Asian powerhouse Singapore. Naturally, it's signed such an agreement with China also. These agreements permit many businesses to operate in Hong Kong and mainland China.
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