European Citizens: The Benefits of Coming to Hong Kong

Many people say Hong Kong is a paradise for investors. Others refer to it as the ultimate place for people incubating new ideas because of unique government support. It has everything that an investor can dream of to start, grow, and become the best multinational in the world.

For European citizens, going to Hong Kong presents them with additional benefits because they can stay away from the unstable political and banking systems. In this system, we explore the main reasons why you should come to Hong Kong.

Important details about Europe 

Europe is the largest continent that spans from the border with the Arctic Ocean in the north to the Mediterranean Sea in the South. The eastern boundary is cultural while it borders the Atlantic to the west. The total area covered by Europe is 10,180,000 sq. miles (about 2% of the entire surface of the globe).

The current Europe Union economy began around the 18th century during the industrial revolution. Notably, the continent has been shaped in so many respects by very many wars, particularly WW1 and WW2. The formation of European Union is indeed part of the effort to address these wars and create a stable system for faster growth and success.

 

  • Europe’s economy 

Europe is the richest continent on Earth with total assets reaching more than $32.7 trillion compared to that of North America of $27 trillion according to the 2008 economic report.  Despite this, the variation of wealth varies greatly from one country to another. The richest are those in the west while the emerging ones mainly lie in the west and south. Some of the nations especially those that were previously in the Soviet Union are still emerging.

The European Union is in the heart of Europe with a membership of 28 states. It is the largest economic area in the world. Five countries in the EU rank as the top nations with largest national GDP (Germany, Russia, Italy, UK, and France).

Regarding income, the richest nation with highest per capita is Monaco that boasts of $172,676 according to 2009 economic survey. The poorest is Moldova with a GDP per capita of $1,631 according to 2010 economic survey.

The unemployment rates in the Eurozone (monetary union comprising of 18 members of the EU) ‘WAS 9.5% in February. This represented a fall from the previous month of January when the rate was 9.6%. About 26 members of the EU experienced a significant reduction in unemployment rates. However, this unemployment rates are still high and pose a huge risk to the population.

  • The Brexit

Brexit was a referendum held in Britain to establish whether it should drift away from the EU or stay in the union. Britain voted to leave with a total of 52% of votes. The Brexit has sparked a lot of speculation about the future of the giant union with some people indicating that it might be a signal of things to come.

As the founding member of the EU, there was a silent (burning) feeling among UK residents that they were giving too much and getting too little. For example, most of the people from other countries could enter Britain and take jobs even at lower rates which made companies to prefer them leaving the highly educated Britons. The effects of the Brexit’s affirmative vote remain unclear because Britain citizens could be locked out of EU while their products get taxed heavily.

Why European citizens should come to Hong Kong?

  1. Run away from unstable political and banking systems 

The political and banking systems in Europe are very fragile. The political systems have given politicians so much power and control over everything.

The 2016 Brexit was the epitome of deeply rooted uneasiness among the members of the EU. For example, many businesses operating in the UK are unsure of whether they will keep enjoying the EU market after the Brexit. The same thing is happening to staff from other countries working in Britain. Will they be told to leave or stay? It is this political uncertainty that makes businesses unwilling to open branches or establish in Europe.

You need to look for a more stable system such as Hong Kong. The operational independence from the mainland China has allowed the administration to build a strong pro-business environment that supports all businesses. You cannot get it wrong in Hong Kong

  1. The banking system in Hong Kong are very stable 

When Brexit drew nearer in 2016, the UK pound and stock prices of Britain-based markets took a nose dive to levels never witnessed in the past. This uncertainty is also being experienced in other countries as fear of more exits loom.

The banking system is so fragile in Europe that you cannot rely on it. Many clients never feel safe when their deposits are in Banks. Every day, countries are a step away from seeking bailouts while others are now taxing interests, bank deposits, and taking over insurance schemes.  Do not wait until disaster strikes, cast your eyes offshore and open a business in Hong Kong and an offshore bank account.

Immediately after Hong Kong was set free from the colonial masters, it adopted a unique independent system that has made it possible to adopt a pro-business operational model. With this as a unique pillar, the Hong Kong administration has established a serious banking framework that protects banks and their clients. It is because of this that Hong Kong has become a financial Hub with over 200 banks having a strong presence.

This strong presence means access to credit is easy, and the economy is ready for investment. Therefore, you do not have to worry that the company will get stuck. All you need is building a good history with them to access all the credit you need.

  1. Support from the government

The Hong Kong administration has demonstrated its undying appetite to identify and support businesses. Because the island lacks in mineral resources and agricultural land, the government has resorted to a business economy. The administration helps to ensure that every business succeeds and contributes to the growth of the economy.

Once you have worked on a business structure and defined the products, carefully follow with the Hong Kong administration to see whether it fits in any of the supported programs. You could get a lot of support in terms of capital injection or indirect facilitation. You can never go wrong with Hong Kong.

Opening a company and a bank account in Hong Kong 

Opening a company in Hong Kong is simplified so much so that new investors can initiate and complete the process faster and easily. You can achieve this in two ways;

  • Register the company on your own: This involves collecting all the required documents including the shareholder’s passports, proof of residence, articles of association, memorandum of understanding, and business structure. The companies’ registry might also ask for additional information such as books of accounts if the company is a branch of the mother firm in Europe.

You will also be required to get a resident company secretary, and address of the company. Once you have all of these documents, and the required fees, they should be presented to the companies’ registry.

The registration will take about 14 working days. It is advisable to keep checking your mail for inquiries or request for additional details.

  • Registering the company using an agency: The process of preparing all the documents and traveling to Hong Kong is never easy. In most of the cases, some people end up doing away with the process. However, you can register the company without having to set foot in Hong Kong. All you need to do is getting an appropriate agency and submit the required details. The agencies will also look for address and company secretary. Note that the agencies are also mandated to operate as company secretaries and can operate as company offices.

After registering the company, it is time to get a bank account. Unlike the company registration, the bank account will require you to travel all the way to Hong Kong. This is meant to ensure that the banks understand all clients and can account for them.

You need to submit the certificate of incorporation, passports of the shareholders, company directors, and the secretary. The bank will also want to know about the operational structure and targeted clients. These questions are meant to make fraudulent activities easy to note and prevent.

Unlike in the past, the banks will also ask for your tax residence and tax info from back at home. This is the latest requirement by financial institutions meant to help identify people who avoid taxes at home. Therefore, be prepared for extra scrutiny to demonstrate that your company is genuine and will not deal with fraud related issues.

Honk-Kong is a paradise for entrepreneurs

Moving from the western system to Hong Kong for investment will help you take advantage of the strong systems to establish and grow rapidly. The Hong Kong administration has numerous opportunities for partnership and rapid growth. Remember that it is also a free port and serves as the gateway to mainland China. To take advantage of this business economy, do not hesitate to contact us for assistance.