As being an international metropolis with ample information and opportunities, Hong Kong company formation gives unmatchable access to an estimated consumer market of 450 million people in southern China alone. With sound infrastructure and complete legislation of its own, it provides an advantaged financial & commercial environment to numerous entrepreneurs and traders. Therefore, Hong Kong is a popular jurisdiction with international entrepreneurs looking to penetrate Chinese markets, and a lot more people establish their own companies in Hong Kong with assorted purposes, which improve not only the image of the Company Formation itself, but also the competitive ability within the international market. The following information can help you determine whether Hong Kong company formation is the optimum strategy by which to achieve this.
We know many reasons exist or factors can bring about the achievements of business. While Hong Kong is considered among the best cities to determine and run a business, since it scores high on factors that matter to businesses. Below are the key advantages of setting up a business in Hong Kong and can serve to provide you with the answers whether Hong Kong company formation will be the optimum strategy.
1. Being international center of data exchange and transportation hub. A focal point of all maritime activities in southern China and is among the major ports around the world when it comes to tonnage of shipping using its facilities, cargo handled and the number of passengers carried.
2. World’s most dynamic economies driven through the principles of free enterprise, free trade and free markets available to all. No restriction on inward and outward investment, no foreign currency controls with no foreign ownership restrictions
3. Strategically based in close proximity to China. Air, rail, road and sea links are modern and efficient and offer unrivalled access to China’s booming southern provinces for many foreign entrepreneurs.
4. With suprisingly low tax rate (around 16.5% on net profit), tax exempt for income not incurred in Hong Kong (offshore income)
5. With Robust Infrastructure, stable social and political environment, Most businesses elect to set up operations in Hong Kong because it believed to be politically stable having a pro-business governance and free market principles.
6. Enjoy ease of international banking system. A number of banks represent the interest of 32 foreign countries. The Hong Kong banking and financial services is regulated by the Hong Kong Monetary Authority (HKMA). The benefits and features of employing Hong Kong for private banking, bank accounts, corporations and offshore asset protection are extensive.
Hong Kong Company Formation process is comparatively straight forward. The main requirements are:
1. Require a minumum of one company director/shareholder and Hong Kong Company Formation secretary (above age 18 ).
2. Confirm the company name and corporate structure
3. A minimum issued capital requirement of HKD 10,000, Paid-up capital requirement is only the sum of one dollar.
4. Business scope. There exists hardly any restriction in business scope once you set up a Hong Kong company.
5. Operational requirements, like opening a Hong Kong corporate ousyuz account, establishing office (virtual office is definitely an option) etc.
If you want more information on Hong Kong company Formation or others like Tax Planning, you can refer to Conpak CPA Limited.