Benefit #1: Easy get right of entry to to China
It isn’t without motive why Hong Kong will become the first choice every time it involves doing enterprise with China.
As a long way as the geographical 香港相睇 region is worried, Hong Kong has the strategic advantages of, apparently, being close to China, and that enables a whole lot more blessings to extend their corporations to the Greater China marketplace, especially to startups.
There are quite some privileges that China offers to Hong Kong businesses to allow them to have less complicated access to the China marketplace.
In 2004, the Chinese authorities has already added Closer Economic Partnership Arrangement and the CEPA, agreements like these decrease the entrance limits for organizations, mainly if you’re an worldwide business looking to step foot inside the Chinese market.
It goes without announcing that China is the most important trading partner with Hong Kong, with that relationship plus the expertise in technology and economic area, a sound infrastructure device as well as pinnacle-notch advertising.
Benefit #2: Financial blessings
As I mentioned before, Hong Kong is an fantastic location to start global groups that need to set foot inside the Chinese marketplace.
You might already understand approximately this however, Hong Kong has one of the lowest tax charges here and the tax regime is noticeably simple.
This allows companies in order to experience the dream blessings of having the lowest fee, but with the best earnings generated through the company.
There also are no longer many capital requirements on this component.
If you’re concerned approximately the capital front requirements, don’t worry, the money required is extremely low.
We’re talking approximately HK$1, you can already installation a commercial enterprise right here.
Crazy, isn’t it?
In the charter files, you furthermore may don’t want to nation precisely the maximum authorized capital.
Now, the income tax fee is even better – it doesn’t remember whether you’re a local or worldwide organization, the charge is as low as sixteen.Five% for you, either manner, making your business all of the less difficult in Hong Kong.
One aspect you ought to take note of even though is the 2-tiered profits tax fee right here in Hong Kong.
Essentially, the way it works is that the first two million well worth of profits that you make can be taxed for eight.25%; and another 16.5% tax will be charged in your closing income with positive varieties of exceptions.
To top all of it off, there’s in reality zero income or VAT tax here in Hong Kong.
The restrained tax base makes it a greater aggressive region for you to start a commercial enterprise here.
Benefit #three: Laissez Faire Economics
It is no mystery that Hong Kong has one of the freest economies in every factor: economic integrity and transparency from government, freedom in trade.
Besides, you’re basically allowed to run any type of commercial enterprise here (as long because it’s criminal): consulting services, E-commerce, economic belongings protecting, trading, e-trade, and greater.
Except for a few merchandise, including tobacco, motor cars, methyl alcohol, liquors, and hydrocarbon oil, there’s surely not a great deal tax this is accountable for imported items to Hong Kong, which adds to the various blessings right here.
Other than that, there are also pretty a few tax exemptions, and you could excise a few obligations on total exports.
If you want to transfer some bills, either to or from Hong Kong,
Also, in case you’re a business owner, you then ought to already recognise the battle of shifting cash or incorporating a respectable best of forex trade service to your business.
The exact issue about it’s miles that those offerings are pretty admissible in Hong Kong, which makes it less difficult to your business.
If you’re looking for a respectable foreign exchange provider at a low value on your commercial enterprise, test out Statrys for our worldwide price answer designed in your SME.
Benefit #four: Productive workforce
It isn’t any doubt that Hong Kong is chock full of extraordinary talent that’s both tremendously professional and highly-knowledgeable, frequently instances the nearby group of workers has studied abroad.
If you have a pal running in a Hong Kong organization or owns a corporation in Hong Kong, then they may let you know that personnel in Hong Kong are located to be extra competitive, diligent, and attempt for private development within the administrative center (not to toot my own horn.
Don’t believe me? Here are the stats:
Most motivated personnel in Asia 7 IMD World Competitiveness Yearbook, 2016
Best Labour/Employer Relations in Asia 2 The Global Competitiveness Report, 2007-2008, World Economic Forum
Besides that, the body of workers here is typically greater multilingual.
It is compulsory for local students to take in Cantonese, English, and Mandarin of their number one education until secondary schooling.
If you plan on doing enterprise with China, the extra advantage of your personnel speaking Mandarin/Cantonese is vital, if not a need to to your China objectives.
Benefit #five: Liberal Immigration Policy
Immigration may additionally be one of the concerns on pinnacle of your listing.
You also can do visa-loose visits to Hong Kong, and that is available to greater than a hundred and seventy international locations’ nationals, generally starting from 7 to a hundred and eighty days.
If you’re journeying Hong Kong for only a brief time period, you are even allowed to sign contracts or conduct business negotiations when you have an entry permit or traveller visa.
If you’re a business owner or that you are going to installation a brand new office in Hong Kong need to transport your personnel right here, the paintings visa provisions made it clean that allows you to do it.
If you’re considering hiring personnel here, dependent visas might be some thing that you’ll be interested in.
Essentially, the holder undertakes any kind of legal employment in Hong Kong. And here’s some visas you may get: