Working and living in Hong Kong has always created a special thrill for people because of its strong institutions, stable political system, and pro-business/visitors economy. You cannot get it wrong in Hong Kong.
South Americans have additional reasons to come to Hong Kong because of the special connection that stands for decades and great opportunities. Whether you are traveling for holiday, business, or want to set up a company, Hong Kong is the place to be. Here is a comprehensive look at why South Americans should come to Hong Kong.
Information about South America
South America comprises of 12 sovereign states including Brazil, Bolivia, Argentina, Colombia, Guyana, Ecuador, Peru, Paraguay, Chile, Uruguay, Venezuela, and Suriname. Besides, it also includes non-sovereign states such as the British Overseas Territory of Falklands Islands, The Netherlands ABC Island, and French Guiana. Trinidad & Tobago and Panama are also considered part of the South America.
The entire South America occupies a total area of 6,890,000 sq. mi. The population of the entire region according to the 2005 statics is more than 371,090,000 with over 50% of it being in Brazil. Because of the region’s history of colonialism, the main languages are Spanish and Portuguese.
South America’s economy is mainly driven by natural resources and manufactured products. The merchandise exports from South America stand at 16% of GDP compared to the average of 25% for the entire globe. Brazil is the largest economy in South America and the seventh in the entire world.
Since 1930, South America started diversifying its economy to help stabilize their economies. Most of the livestock and agricultural products are meant for local use. However, some are still exported to help with the balance of trade in most of the countries. The main crops include Wheat, Soy, Cocoa, Banana, Coffee, sugarcane, and Cotton.
Of all the South American countries, only Argentina and Brazil are part of industrial (G20) states. Brazil is also part of the G8+5 countries (most influential states) in the world. The most industrialized nations in South America are Brazil, Argentina, Chile, Colombia, and Venezuela in that order respectively. These nations contribute about 75% of the entire South American GDP.
The gap between the poor and rich people in South America is bigger compared to other states. The richest take 10% of Paraguay, Colombia, Chile, Bolivia, and Brazil’s 40% of the entire income. The poor 40% get less than 3% of Colombia, Brazil and Bolivia’s earnings.
Why South American citizens could come to HK?
For a long time, Hong Kong has stood out as an investment and travel destination in the entire world. South Americans would particularly benefit in the following ways by coming to Hong Kong.
Great business environment
If you intend to open an offshore company or a branch office, Hong Kong should come top on the list. Since its colonial history under the British, Hong Kong has cultivated an independent business economy that supports all investors. As an island, Hong Kong lacks agricultural land or mineral resources that are main economic drivers of other states.
Because of this reality, the Hong Kong administration relies on businesses that operate there. All the systems are, therefore, carefully designed to ensure they support businesses to grow and anchor the economy.
Hong Kong is the best gateway to the entire Far East
People who want to grow their businesses rapidly in the Far East use Hong Kong as the main gateway. Because of its location and diverse agreements with other jurisdictions, Hong Kong is a perfect place to open a new business or position a special purpose vehicle to reach the larger Chinese market.
For example, over 70% of foreign companies that operate in China are based in Hong Kong. Here, you get preferential treatment for operating in the Mainland China. Therefore, whether you want to bring products to the huge market that is China or want to export electronics, the Hong Kong business will never disappoint.
When you open a venture in Hong Kong, the taxes are straightforward. You will only be required to pay 16.5% in taxes for all the transactions completed in Hong Kong. This means that if most of the operations are done outside Hong Kong, you could qualify for 0% tax. This allows you to keep the bulk of the profits from your business operations. Besides, the taxes on dividends, interests, and royalties are equally low compared to other states.
You can travel to Hong Kong Visa free
Unlike other countries, Hong Kong allows people from over 160 countries to enter and stay for periods of 7 to 180 days without a visa. This means that you do not need to make long queues to look for a visa or pay related costs. You simply book a ticket and fly to Hong Kong for holiday or business. It is easy, efficient, and very reliable.
Stable financial systems
Many people in South America are worried about their investments. Just like in the west, the instability of the banking system makes your deposits less secure. For example, the interest of your deposits is relatively low compared to what is offered by Hong Kong banks.
In Hong Kong, the central administration has installed very strong laws that promote stability of the banking sector. Therefore, you can rest assured that your deposits is safe, free from political interference back at home, accessible anytime, and earns higher interest rates.
How to open a company and bank account in HK?
Opening a company in Hong Kong is very simple. According to World Bank, Hong Kong is one of the countries with the greatest ease of doing business in the world.
Opening a company in Hong Kong
Incorporating a company in Hong Kong takes three simple steps.
Step 1: The first and most important step when opening a company in Hong Kong is gathering the right documentation. You will be required to have an article of association, memorandum of understanding, minutes authorizing the opening of the company, and copies of your passport. Besides, you will need to provide copies of personal passport and proof or residence.
Step 2: This step involves carrying name search, identifying an office, and company address. The Companies Ordinance in Hong Kong requires that you conduct a name search to ensure that the name of the company is unique. Then, you must have a resident company secretary who will serve as the main link between the company and the administration. To get the company registration certificate, you must also have a physical address in Hong Kong.
Step 3: The last step involves presenting all the required documentation to the Companies Registry and paying the required fees. The registration office might ask for additional details until they have all the details. Once the details have been provided, it will take about 14 days to get the registration completed.
Opening a bank account in Hong Kong
To incorporate a bank account in Hong Kong, you will require a certificate of incorporation for the company. This means that every client must wait for 14 days when the certificate of company registration is processed.
Armed with the certificate of incorporation, you will need to present to the bank of choice together with other documents including copies of your passport, proof of address, and details of the business. The bank might also require knowing more about the business directors and nature of the operations. Unlike in the past when the process used to be straightforward, it is increasingly becoming difficult as banks want to understand the nature of your deals to avoid clients involved in fraud.
In June 2016, the Hong Kong administration passed the Hong Kong framework to operationalize CRS in line with OECD recommendations of 2014. This means that your bank will go a step further to proof your tax resident status. Therefore, if you are from Brazil, Chile or other South American country, the bank might demand more details including place and date of birth.
After all the documents and details have been provided to the bank of choice, it will take about 14 days to get the bank account processed. Therefore, a total of 30 days will be required to get a certificate of registration and bank account.
Conclusion : you need an agency
Coming to Hong Kong presents South Americans with numerous opportunities. The stable financial system and political systems have made Hong Kong a top destination especially for those who want to open companies. While the process of opening a company and bank account is very simplified, it still involves a lot.
For example, you will be required to put together all the documentation and travel to Hong Kong. This can be a very big task if you have other tasks to attend. To make the process easy, fast and more affordable, consider using an agency. Agencies are allowed to help clients register their companies without going to Hong Kong.
Contact us to help you do most of the work and peg together top notch documents that will guarantee you of an incorporation certificate and bank account.