Top Four Reasons to Start a Business in Hong Kong
21 March, 2017
Hong Kong is ideally located not only for companies that want to do business with Mainland China and Asia. The Hong Kong government offers generous support to help companies start and expand.
#1 Tax System
Hong Kong has a simple, low and predictable tax system. Its efficient tax regime has created a business-friendly environment.
It only imposes three direct taxes and offers many deductions and allowances which may reduce the taxable amount.
Hong Kong has:
- No GST or VAT
- No capital gains tax
- No withholding tax
- No tax on dividends
- Corporation income tax rate in Hong Kong is only 16.5% (one of the lowest in the world)
Furthermore, the process of completing and filing tax returns is simple and all online.
#2 Free Trade Port
Duty in Hong Kong is paid only on a few products, for example tobacco.
The customs procedures are easy and Hong Kong has a status of a free port.
#3 Ease of Hong Kong Company Registration
Setting up a company in Hong Kong can be done within 24 hours. Foreigners can start business easily as you are not required to be a Hong Kong citizen.
The setting up and annual maintenance costs are low.
#4 Legal framework
Hong Kong follow a common law legal system and is based on the common-law principles of England and Wales. This legal system is excellent for protecting and enforcing legal rights and obligations arising from commercial contracts.
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