Simplify Business Set-up for Foreign Business Owners and Entrepreneurs
Hong Kong is renowned for being an easy place to set up a business. Foreigners who wish to setup business in Hong Kong can easily relocate by applying for an appropriate visa.
Setting-up a company in Hong Kong is very simple and does not put a lot of restrictions on foreigners to open a business. You can incorporate a limited company even in a day if your company. There is no minimum capital in Hong Kong and a foreigner can have 100% of the shares of a private limited company.
Premier Strategic Location
Hong Kong is ideally located for growing companies that want to do business with Mainland China and Asia. It enjoys peerless transport connections. Hong Kong is strategically located at the heart of Asia, alongside many of the region’s most exciting business markets.
•Strategically located for business in Asia.
•Beijing, Shanghai, Singapore and Taipei are in the same time zone as Hong Kong.
•Bangkok, Jakarta, Seoul and Tokyo are within one hour’s time difference.
•Over 100 airlines offer flights to about 180 locations.
•All Asia’s key markets are less than four hours flight away.
•Half the world’s population is within five hours flight time.
•About 1,000 daily flights between Hong Kong and the rest of the world.
It shapes Hong Kong a world's most multicultural cities, that culturally diverse workforce contributes to Hong Kong's well-earned reputation as a true international metropolis, with a large expat community.
Gateway to China
Hong Kong is a highly appealing trading partner and investment conduit for Mainland China. Regular flights and several new rail and road links ensure smooth and speedy travel across the border, while Hong Kong offers the benefits of a simple and low tax regime, free market policies, and free flow of information.
The Closer Economic Partnership Arrangement (CEPA), which took effect at the beginning of 2004, provides Hong Kong with additional and exclusive Mainland market access benefits. Furthermore, in August 2006, China and Hong Kong signed an arrangement that provides certainty and preferential tax treatment between the two tax jurisdictions, known as the "Arrangement for the Avoidance of Double Taxation on Income and Prevention of Fiscal Evasion".
Thousands of international companies involved in China trade have chosen to establish their beachhead in Hong Kong.
Low, simple and competitive tax regime
Hong Kong charges some of the lowest tax rates in the world that compliment a simply tax system; this is the main reason why foreigners seek to start a business in Hong Kong – low taxes. The city only imposes direct taxes and has generous allowances and deductions which reduce taxable amounts. These are the tax rates in Hong Kong:
|Profits tax||2-tier tax regime is adopted
8.25% for first net profit of HK$ 2 million
the outstanding is capped at 16.5%
|Salaries tax||maximum of 17%|
There is no capital gains tax, nor any withholding tax on dividends and interest tax. Furthermore, there is no sales tax or VAT and estate tax in Hong Kong.
One country and Two system - Rule of Law
All are equal before law. HK's legal system is separate from Mainland China's, and English common law prevails. The legal environment remained unchanged after the retrocession in 1997.
Such legal system in Hong Kong leans to favour the business environment by providing fair business surroundings at all times.
Hong Kong also has long been, and remains, a safe city with low crime rate that brings the safe and secure
Free Port in Oversea Trading Business
Hong Kong is well perceived as its status of “free trade zone” and straightforward customs clearing. Duty is only paid on limited products such as liquors, tobacco, hydrocarbon oil and methyl alcohol.
However, the import of wine and beer has been made to duty free. This has promoted Hong Kong as Asia hub of import, export and storage business serving retail and individual buyers.
With a population of 7 million, HK appears to be a small market. However, it enjoys the second highest buying power in Asia. Moreover, HK is the top touristic destination in Asia, with more than 60.8 million visitors in 2014. Nearly 77% of those visitors come from Mainland China to spend in HK.
•Population: 7.3 million
•Area: 1,108 km2
•GDP Growth: 2.4% (2015)
•GDP / Capita: 31,500 EUR (2014)
•Unemployment: 3.3% (2015)
•Profit tax: 16.5 %
•Individual Tax: 15%
•Inflation: 3.1% (2015)
Hong Kong hosts the largest number of French people in Asia, with 18,000 people registered (25,000 estimated).
World Class Infrastructure
Hong Kong has taken endless measures to continuously develop and upgrade its infrastructure in order to meet the growing demands of businesses, like opened Hong Kong-Zhuhai-Macao Bridge, and raising Hong Kong International Airport Master Plan 2030.
It is said to have one of the Best Airports and Busiest Ports in the world. Transportation services are efficient and cheap connecting all major cities, Hong Kong is also the preferred Exhibition and Convention Centre for most businesses in the region. The Hong Kong Exhibition and Convention Centre has received several awards and accolades. It is often voted as the ‘Best Convention and Exhibition Centre in Asia Pacific’.
Hong Kong is home to world-class industrial/business parks like Cyberport and the Hong Kong Science and Technology Parks. These parks provide integrated infrastructure in one region that help reduce the per-business expense, and also help companies operate in a highly conducive, environment friendly setting.
Hong Kong s telecommunications infrastructure is one of the most technically advanced in the world. Broadband coverage is available to virtually all commercial and residential buildings. Hong Kong s open markets ensures there are several competitive mobile phone and Internet service providers. Broadband Internet connection is available to over 98% of households in Hong Kong.
Many investors and entrepreneurs are choosing to set up their businesses here, our experts are happy to provide more information to streamline your business plan.
: Unit 706, 7/F, South Seas Centre Tower 2, No.75 Mody Road, Tsim Sha Tsui East, Hong Kong / Tel:(852)3913-9500 / Fax:(852)2170-1919
: 3 Shenton Way #16-08 Shenton House Singapore 068805 / Tel: (65)6542-2309 / Fax : (65)6221-4376
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