The history of Hong Kong and Britain is long and ties the two in a unique way. Indeed, many systems working in Hong Kong are modelled on the Britain system. Investors from Britain should, therefore, consider investing in Hong Kong because it is in many aspects just like home.
In this post, we explore the key reasons why British citizens should consider forming companies in Hong Kong.
Registering a business in Hong Kong is easy (…with an agency)
When considering opening an offshore company, capital is a critical factor. However, setting up a business in Hong Kong is relatively easy and cheap compared to other countries. If you want to start and run the company that has a simple structure, the cost will be modest.
To operate the business, the investor is also required to have an operational telephone line that the administrative agencies can easily use. The line is a great addition to your target clients because they can make enquiries and place orders to kick start the business for faster growth.
The process of registering a company is very easy with just a few steps. You gather all the documents, present them to the registry office, and collect the registration certificate in a few weeks. In fact, you will be surprised to realize that it is even possible to incorporate a company without the need to travel to Hong Kong. To do this, you need to identify a good Hong Kong agency to assist you, and the process will be completed in weeks.
The only thing that requires you to fly to Hong Kong physically is opening a bank account. The banking institutions want to know you and the company when opening the account. They will also want to know about your location, shareholders, and other operational details.
Tax-free operations for operations transacted outside Hong Kong
To encourage companies to come and set up their operations in Hong Kong, the government has instituted great policies that help to prevent double taxation.
They have a very straight forward tax regime that outlines how tax obligations should be met. For all transactions carried out in Hong Kong, you are required to pay 16.5% in taxes. However, any transaction that is carried outside Hong Kong will not be taxed. This means that if your company is mainly involved in export operations where transactions are completed abroad, you can qualify for 0% tax.
To enjoy tax-free operations, it is important to carefully track all the transactions (location and time) and present documentation to authorities when they come for books inspection. However, you will need to ensure that all the personal taxes are paid and where possible consult a tax expert.
Hong Kong is a global banking hub
The success of Hong Kong as an investment hub has been built on the platform of safe and secure financial system for individuals and businesses. While other countries are greatly limited by numerous risks such as political systems, Hong Kong is free from such bondages.
You are sure that all the company’s deposits will be safe, earn a lot of interest, and can be accessed anytime.
The offshore account in Hong Kong allows you to store cash in different currencies. For example, if your clients pay in Euros, your Hong Kong bank will hold it in Euros until you authorize for changes. The banking culture in Hong Kong targets helping businesses operate faster, make payments easily, and expend as fast as possible.
People who incorporate companies in Hong Kong find it very easy to open bank accounts. You only need the certificate of incorporation and shareholder details to have the bank account ready. Once your bank of choice approves the account, you can start transacting in a couple of days. We strongly advise you to contact a bank introduction specialist to maximize your success rate.
Hong Kong is the best platform for faster growth into the Far East
Many entrepreneurs hold one objective so dearly, to grow a business and expand beyond boundaries. Hong Kong, as a business driven economy, has gone to great extents in ensuring that every business can exploit its full potential faster. First, Hong Kong is historically known to be the gateway to the mainland China. This means that you can easily access the Chinese market for your company by forming a partnership in chain distribution with Chinese companies.
Because of its strategic location, other countries in the neighbourhood prefer it to market their products. This presents investors with a perfect opportunity to partner or enjoin other businesses in the production chain. For example, if you are involved in electronics export business, it is very easy to partner with companies that bring the electronics from Mainland China or neighbouring countries to make work easy and more profitable.
Depending on the nature of your company, Hong Kong is a great place to set a company because of its excellent internet connectivity and mobile penetration. The mobile penetration in Hong Kong is over 170%. This makes it very easy to reach people through advertisements to inform and persuade them on using your products.
Because of the high mobile penetration, companies in tech-start-ups find it extremely easy to design, test, and sell their technologies. Indeed, the Hong Kong administration is very supportive of companies in the tech industry because they have the ability to keep the economy vibrant and highly successful.
Ranked as the most densely populated regions in the world, Hong Kong provides investors with a ready market. If your company is in an area that targets the urban population like telecoms, financial services, or even catering, Hong Kong has no equal. You only need to study the market well, perfect your product, and market it appropriately.
If you intend to set up a company in Hong Kong, it has been voted as one of the best business investment hubs globally. It has attracted top banking institutions and major multinationals also used it as a catapult to global status.
Remember that you can always seek assistance on company registration, market analysis, and other specific information about Hong Kong to make the process of registration, operations, and growth rapid.