Are you an entrepreneur from the USA and want to set up an offshore company? A foreign company provides greater impetus to grow internationally and become like other top multinationals in the globe. When expanding abroad, the biggest issue is selecting the right state that can catapult a business to greater heights faster and sustain high profitability. One such place is Hong Kong that many big companies have used to expand in the entire Far East and globally.
In the post; Entrepreneur from USA? 4 reasons to setup your company in Hong Kong, we discuss all the benefits that you accrue by getting offshore to the Special Administrative Region of China. The article explores various aspects of doing business in Hong Kong and compares it with other areas to bring out all the advantages to anticipate.
Strong financial system
For a long time, many investors from the US have kept searching for areas that can present their businesses with stronger financial systems. Hong Kong has established itself as a top financial hub with more than 30 global banks having their presence there. Because of this, your business will find it easy to get a bank account, transfer cash to and from Hong Kong, and grow the business.
Because of its independence from the mainland China, Hong Kong has modeled its financial system to ensure that investors can access their money anytime they want. Also, the risks to their deposits are very limited. Once you start operating in Hong Kong, there will be no need to worry that company deposits could be targeted by governments or risk being frozen because of litigations.
Government support for new investments
Because Hong Kong is a business driven economy, the government has created a comprehensive support system to attract and nurture businesses. The government has taken an early stride in creating the right operational atmosphere to assure businesses of progressive growth. In particular, the Hong Kong administration encourages start-ups in technology and value addition to come and base their establishments in Hong Kong to leverage their growth.
The Hong Kong administration has created areas of support that it particularly encourages investors to venture into. It has set up programs to support such as Hong Kong Science and Technology Parks, and Hong Kong Design Centre which can be accessed directly once your start-up qualifies. It is important to dig deeper into each program to understand how the entire system works.
The Hong Kong administration also provides funding to start-ups and companies that operate within certain niches such as new technologies. For example, many companies involved in apps development get direct support from the government through programs such as Cyberport Creative Micro Fund, and Innovation and Technology Fund.
Hong Kong is a very liberal economy
Hong Kong has been voted as one of the most liberal economies in the world. Its political system and willing administration have made it easy for companies to operate and become big multinationals. Whether you are expanding to the Far East or simply want to start a new company, Hong Kong should be the first option. Progressive World Bank reports rank Hong Kong one of the places that are easiest to do business.
- Ease of establishing companies and starting operations: Unlike many countries that put a lot of restrictions that make it difficult to open a company, it is the opposite in Hong Kong. Their requirements are modest to help investors open companies and start operations immediately. In fact, you can even open and run a company without having to travel to Hong Kong.
- Ease of opening and running a bank account: For a company to transact any business, it must have an operating bank account. Getting a bank account in other countries has in many cases been an uphill task for investors. However, as far as your company registration has been approved, you can be sure of getting a bank account to start operating immediately.
- Ease of moving business capital: Unlike many countries that have huge restrictions on capital movements, Hong Kong allows investors to operate as they wish. This makes it easy to mobilize a lot of resources, enter into great business deals, and grow into the multinational you anticipate as fast as possible.
Huge potential for growth
One of the main factors that investors are very critical about is the suitability of a location especially its potential to stir growth. Hong Kong presents investors with the best opportunity for growth because of its proximity to Mainland China. It is considered the Gateway to the mainland China and businesses that want to tap the huge market always start in Hong Kong. If you select the business niche carefully, you are sure of enjoying a ready market and rapid company growth.
For companies that are in export business, forming partnerships or opening subsidiary offices inside China is very easy when based in Hong Kong. Indeed, you will find it easy to partner and do business with other companies in Mainland China in comparison to other companies operating direct from inside China.
Because of its unique location in the Far East, Hong Kong has become a perfect position for businesses that want to enter the entire Asian market. Your new start-up and products will get a direct market in Mainland China, and neighbouring states such as Taipei and Taiwan among others. In fact, your company will have grown so much by the time you start looking into other far markets such as The US, Europe, and Africa among others.
As a US investor, the best place to invest your capital should present you with huge potential for growth. Hong Kong has stood out because of its unique location, government support, and relative independence from the Mainland China. Besides, it has very supportive policies that target making investors comfortable and more successful.
By ensuring that they are the best economy to do business in the entire world, investors from the US should take advantage and enjoy the huge potential in China and neighbouring states in the Far East. Well, do not hesitate to open and run your company from Hong Kong for more profits and faster growth.