Why is Hong Kong a great place to start a business?
08 May, 2019
While considering about Hong Kong, you will think about different things such as a shopping paradise, bespoke tailors, and temple street night. But do you know, 'Hong Kong is known to be one of the dynamic cities in the world with strong growth prospects?'
Let us ask you one more question, 'do you know why several entrepreneurs want to move outside their country or going global in order to set up the business?
Why several big names, like Google, Apple, Amazon, Facebook, PepsiCo, and Starbucks are diversifying worldwide. Just Think!
The reason is just not taking the advantages of setting up the business in the Asian market, but also to generate more revenue. So, where are you thinking about launching a company? Think about Hong Kong.
This place attractiveness in living and doing business is appealing, offering a plethora of benefits that are uniquely available among other cities.
Hong Kong serves as a perfect attraction for investors and entrepreneurs to get started with your business in this business-friendly and stable cosmopolitan. This place is offering benefits that are uniquely available among other cities:
- A regional financial and logistics hub for expansion across Asia.
- A stable, highly-efficient, business-friendly cosmopolitan.
- A strategic gateway to growing Mainland China markets.
Why choose Hong Kong?
Are you curious to know about Hong Kong? If so, then we have gathered all the information about Hong Kong that will help you in settling your startup more effectively.
#1 Simple and Low Tax Regime
The first and foremost reason for setting up the business in Hong Kong is because of its simple and low tax regime. As a matter of fact, taxes are one of the crucial factors while doing business globally.
Since we came into the business world to earn money and more importantly, generating revenue so if we are spending all the money on paying taxes, then what's the point of having a business.
But in Hong Kong, you don't have to think about this factor. This place offers a predictable tax system and low tax rate. In Hong Kong, there are only three kinds of direct taxes- Property Tax (for income sourced from Hong Kong property), Profits Tax (for the incorporated body), and Salaries Tax (for personal income).
Moreover, business people don't require to pay sales tax nor VAT, capital gains tax, dividends tax, withholding tax, or estate tax. The reason behind is - Hong Kong follows a territorial basis of taxation, only incomes sourced from Hong Kong are taxable.
#2 Free Port in Oversea Trading Business
The second benefit of incorporating your business entity in Hong Kong is its status of "free port" and straightforward customs clearing. Businesses are only required to pay duty on limited products like tobacco.
Furthermore, the import of wine and beer has been made to duty-free. Due to this advantages, Hong Kong can in promoting an attractive wine import, export and storage business serving retail and individual buyers.
#3 Excellent Location in Asia
Whether you want to grow your business in order to reach Mainland China or Asia, Hong Kong is a perfect choice for you. Being situated in the heart of Asia's high-growth economies, Hong Kong offers ample benefits to entrepreneurs.
And if you are thinking about the time for commuting, then you may be amazed by knowing that major business cities like Shanghai, Singapore, Kuala Lumpur, Taipei, Beijing, Manila, and Perth are in the same time zone as Hong Kong.
Along with this, Bangkok, Jakarta, Seoul, and Tokyo are within one hour's difference. More importantly, you can see that in Hong Kong, there are 100 airlines which are offering flights to about 1000 daily flights between Hong Kong and the rest of the world.
#4 One Country, Two Systems
One Country, two systems? How! Well, in 1997, Hong Kong's sovereignty was shifted from the United States to the People's Republic of China. However, Hong Kong still follows a separate and legal system from Chinese sovereignty.
Due to this system, Hong Kong can retain all the fundamental strengths from the free flow of information, an independent judiciary, the rule of law, to capital. Therefore, business owners in Hong Kong aid in fortifying the success as a highly efficient business city and enhances its attractiveness of access to opportunities in Mainland China.
Ease of doing business (World Bank Report)
So, now that you have an idea about the reasons for choosing Hong Kong as a great place for your business setup. Do you want to have more information? No worries, we have a lot of research work for this and incorporated all the pertinent details on your business in this article.
Let's dive into an article to know about the ease of doing business.
As per the world bank report, Hong Kong rose one place to fourth in the World Bank's latest ranking of the most comfortable sites to do business, while mainland China shot up 32 places to 46th. Well, earlier Hong Kong was ranked on 5th position in 2017.
But now over time, Hong Kong performed best when it came to ease of dealing with the following sectors-
- Construction permits
- Paying taxes
- Getting electricity
- Starting a business
However, it fell short in resolving insolvency, enforcing contracts, registering property, and getting credit. Moreover, from the last ten years, Hong Kong is maintaining its place among the world's top ranking economies in the report with its no bankruptcy protection law, and business premises. In fact, several American and European companies are shifting their companies to Hong Kong in order to enjoy the maximum benefits of setting up the business.
How can Startupr help you?
As a matter of fact, the business registration would be done in the Inland Revenue Department of Hong Kong about one month before the initiation of the business. And in order to register your business, you need to take help from the professionals.
Startupr assists in these services due to the direct portal to the government agencies like CR. In fact, we will even help you in remaining to stay updated with all the rules and regulations of Hong Kong.
Our separate online Back office system is just the icing on the cake that helps in keeping track of your company's details and required annual filings, all in one place.
Moreover, if someone wants to transfer the shares of their company to a person already associated with the business or is already a shareholder, the Startupr Back office system will also help in dealing with that. Depending upon your scheduling, it takes about 3 to 5 working days to complete.
Other than this, checking all the mail in the mailbox sometimes can be a time-consuming task for new companies. And here comes the benefit of mail forwarding. It is a hassle-free method for receiving mail used by most businesses. And Startupr has upgraded the way companies handle mail, with our newest Back office software system, so business owners don't have to worry about this fact! If you are hunting for more information about our back office system, check here.
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