Opening a company in Hong Kong is full of benefits for your business. It is super-easy to set up a company there and allows you to expand your business to a market of more than a billion people. There are over one and a half million companies registered in Hong Kong, which shows how lucrative a business there can be.
The city is among the freest in regard to economic freedom and has a tax structure that makes it the perfect place for you to open a company. Located at a strategic location, it serves as the ultimate place for trade between the east and the west.
The major advantages of opening a company in Hong Kong are listed below.
- Easy to Set Up
Hong Kong is one of the easiest places to set up a company. The city has business-friendly laws that encourage foreign investments and allow foreigners to operate with liberty inside it. Nevertheless, opening a company can require a lot of paperwork and involve a few technicalities that might be too much for newcomers to handle, which is why company formation services in Hong Kong have gained significant popularity. An authentic and legitimate company formation service like Get Started HK can create a company for you within 12 hours and handle all the technicalities.
- Trade with Mainland China
Trade prospects with Mainland China are one of the biggest drawing factors that have encouraged investment in Hong Kong. Ever since the signing of the Closer Economic Partnership Arrangement (CEPA) between the Mainland and Hong Kong, trade between the two has significantly increased. It allows for free trade between the two and affords the companies based in Hong Kong with an opportunity to enter one of the biggest consumer markets in the world.
- 100% Ownership
The laws in Hong Kong allow companies to have a single director or shareholder. Unlike other nations, you do not have to partner up with local companies or citizens to start a business; you can just do it all by yourself. This allows you complete control of your corporation’s affairs with no unwanted shareholders hindering your progress.
- Minimal Government Interference
Another attractive aspect of starting a company in Hong Kong is the minimal government interference; you do not have to worry about any interference from the authorities in your company’s work and affairs. The laws in Hong Kong favor business owners; the free market economy allows the companies to function effectively without any laws preventing their seamless working.
- Tax Structure
Perhaps the most attractive factor of opening a company in Hong Kong is the tax system there. With a business-friendly tax system that is capped at 16.5%, Hong Kong is the perfect destination for anyone looking for a huge consumer market with minimal tax. Moreover, there is no tax on capital gains.
- English Common Law
The fact that the law of Hong Kong is similar to the legal framework of the United Kingdom and the United States makes it an ideal place for investors from the western hemisphere.
All these factors, along with many more, are the reason investors from all across the globe are turning to Hong Kong.