Why choose Hong Kong for starting an Online Business?
25 October, 2019
Thinking about launching an online business, but worried about the place? Where should you start your online business? There are a plethora of places where you can set up your e-commerce business. Online business means you would not have to deal with maintenance issues, paperwork, and you can open the business at home as well. And it is way better than setting up a mortar office. But the real question is where to establish your online empire?
If you are on this dilemma, then this article will give you a proper insight regarding it. Believe it or not; Hong Kong is one of the best places to establish an online business. The jurisdiction of this place is very strict, so you don't have to worry about corruption. There is a low-taxation scheme, and it is also the hub of various global companies.
Besides these, it's incredibly favorable tax regime, and a highly-advanced information and technology infrastructure made this place more unique. If you are convinced to set up an online business, then Hong Kong would be your best choice.
Reasons for choosing Hong Kong for establishing Online Business
Below shared are some of the reasons why you should choose Hong Kong for setting up the e-commerce business.
Efficient Banking System
The first and foremost reason for setting up an online business in Hong Kong is its most valuable and efficient banking system. While launching an online company, you need to explore all the avenues, as you are connecting with the world with your online products and services.
Being a place with a sound and efficient banking system, Hong Kong has one of the most significant representations of international banks in the world. To be more precise, in terms of external transactions, Hong Kong stands in the 9th position as the most significant international banking center. Just make sure that you are registering your company as per the rules and regulations of Hong Kong. In this way, you can avoid the trouble opening a bank account.
Easy Company Formation
To set up a business, every business owner worries about the rules and regulations of the place. But in Hong Kong, there is no need to ponder over this factor, because Hong Kong is one of the most energetic and vibrant cities in Asia. The process of company formation in Hong Kong is easy and straightforward.
In short, you can also run a business in Hong Kong while sitting in your hometown. And if you need any professional support, then Startupr can help you. With the help of our expert advisors, you can select the most effective and efficient legal entity. When you contact us, we will help you to register that entity in line with local laws and regulations.
Stable Jurisdiction and Good Reputation
Every entrepreneur wants to set up the business in a place where they don't have to face any legal system problems. The jurisdiction of the place should be stable, sound, and it must have a good reputation. A business owner may find some difficulties to set up an online business that has political instability.
The political unrest generally leads to various negative consequences such as intermittent internet connection, selling products or services to other parts of the World, and denied access to different websites, especially government ones. Due to all these consequences, an online business would not be able to operate as desired.
When you think about setting up an online business, then Hong Kong would be your best choice. This place has an entirely different political environment, free-market economy, and the hub of global companies who are seeking to set up their regional headquarters in the Asia-Pacific region. Apart from these, the country has a great reputation for having excellent government. Which means that you would not meet any corrupt officer while doing the business.
Favorable Taxation Policy
Setting up a business in a place where the corporate taxes are favorable is just like icing on the cake. In this way, you would not be required to worry about the taxation system. And when you set up an online business in Hong Kong, then you can enjoy the best legal taxation system of the World. Hong Kong doesn't impose the corporation tax on a company that earns profit from an external source.
But that doesn't mean that you will not have to pay taxes if you have sales activities on the Internet. If you are selling your services or products to the residents of Hong Kong, (whether it is on the Internet or offline), then you have to pay the taxes for your business.
However, when you are selling it outside the boundaries of Hong Kong, you would not be taxed. Apart from this benefit, the country also has zero withholding tax, capital gains tax, and Estate duty taxes.
Well, it is not the low-taxation system of Hong Kong that makes this place the most suitable one for establishing an online business. Moreover, the IRD (Inland Revenue Department) of Hong Kong is also doing everything to make the legal system more favorable and transparent tax administration processes. Therefore, all these factors help the business owners not only to set up an online business in Hong Kong but also to grow it more effectively.
Advanced Information and Technology Infrastructure
What do you think, what is the most important thing for setting up an online business in one place? Obviously, technology infrastructure! In Hong Kong, you will get full access to advanced information and technology infrastructure.
Since to run a business successfully and adequately, you need to have reliable servers, data centers, and also other pieces of internet infrastructure for it. So, if you are thinking of launching an online business in Hong Kong, then below shared are facilities provided by this place that you need to understand-
Data Privacy: For setting up an online business, every business owner wants to have data privacy. And if your company gets registered in a place where the jurisdiction has weak data protection laws. In Hong Kong, the privacy laws are stringent, which means that this place doesn't permit any unauthorized person or even the government authorities to access the data center.
ICT Talents: Employees are the backbone of every company because their performance is critical to the overall success of the company. Whether you want to open an online business or set up a mortar office, you need to have qualified employees. And Hong Kong is flooded with plenty of qualified IT specialists like engineers, designers, and developers. Therefore, you can build your business here very easily with the help of expert workers in Hong Kong.
Free flow of information: The more you have the free flow of information for your online business, the more it will increase the revenue of your business. In Hong Kong, there is a free flow of information without any interface of the Government. They don't censor any content of the website. Moreover, the HK government has never interfered with data center operations and censored content.
So, now that you have gathered all the critical reasons to choose Hong Kong for starting an online business. And why it is considered as one of the best business environments in the World. If you are now convinced to launch an e-commerce business in Hong Kong, then Startupr can assist you. We will help you to register and incorporate your business perfectly. Connect to know more about our services!
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