Hong Kong, known as the Special Administrative Region (SAR) of China, locates at the head of the Pearl River Delta. In more than 20 years, since 1997, Hong Kong has kept moving forward with its prosperity and dynamism. Thanks to its high standards of living as well as the benefits of setting up Hong Kong companies, foreign investors are attracted as they have figured out more opportunities here.
Why Choose Hong Kong?
A former British Colony but now it is a part of the Republic of China, Hong Kong considered as a major international centre for business. It located on the southeast coast of China. Hong Kong is classified as a SAR (Special Administrative Region) within the Republic of China and has retained its legal system. The legal system in Hong Kong is, based on the British system with the official languages being English and Chinese. Here’s more about Why Start an Offshore Company in Hong Kong?
Do you know the reason to choose Hong Kong as the criterion for your offshore company? What is it about the place that appeals to foreigners set up a company here? Why wouldn’t anyone want to be part of the cities that has one of the best economies in the world?
The answers to all the question are straightforward—the perfect way to enter in Mainland China and Asian markets. Furthermore, the place is considered one of the best cities to run a business, as it scores high on elements that matter to businesses. What’s further, below shared are some of the factors that continue to contribute to its success.
- Ease of obtaining investors
- Friendly business environment
- Ease of opening a company remotely
- Business Support & Assistance
- Strategic Location
- Tax benefits, infrastructure
Hong Kong offshore companies gain from the jurisdiction not being on the list of global tax havens, thereby avoiding potential difficulty from authorities. Offshore companies also benefit from a free port, free flow of capital and a freely convertible HK dollar, in a tax-haven jurisdiction being ranked the most open economy in the world for the 20th consecutive year.
What’s more, it also provides no foreign exchange controls, global community, political and economic stability, and relatively easy establishment of international corporations. Are you ready to enter into the competition of Hong Kong as an offshore company? Great! Experience reading the article to know more benefits of forming an offshore company in Hong Kong.
Benefits of Starting an Offshore Company in Hong Kong
By opening an offshore company in Hong Kong, you can grab the following benefits:
1.Easy Offshore Company Setup
The first and foremost benefit of starting an offshore company in Hong Kong is the ease of setting up. In the competitive business world, it is a primary problem faced by several entrepreneurs.
Launching Hong Kong's business is secure, very simple, and as try from all the unnecessary bureaucracy. Besides, Hong Kong also follows favourable foreign ownership by just entitling the company shares to be 100% foreign-owned. There is no requirement of any individual authorizations before the Hong Kong company setup.
In Hong Kong, there is contact with political stability and the investment climate. Despite being a Special Administrative Region (SAR) of China, Hong Kong is prosperous in retaining its economic and judicial systems.
The legal obligations of any directors of an offshore company are less in Hong Kong. So, you don’t need to take a lot of burdens to hire the officers for your business entity in Hong Kong. Moreover, the need for accounting, other staff or a physical office can also overcome with cost-effective virtual office services saving time and money.
Hong Kong relatively low taxation make it one of the suitable business-friendly environments in the business world. The corporate tax rate is 16.5% in Hong Kong. No need to pay capital gains tax, withholding tax on interests or dividends, and most importantly, there is no GST/VAT, and no estate duty. Also, you don’t have to worry about foreign exchange controls in Hong Kong, and the foreign-sourced income also exempted from tax in Hong Kong.
There is no denying the fact, the trusted image in combination with protecting assets leads to lower levels of income, capital and death taxes that would otherwise be payable if the assets held directly.
Everyone wants to start their business in a place that is known for its trusted image in the business world. Hong Kong’s simple business rules are the keystone of their economy. Committed to the international standard on tax exchange and information, Hong Kong has the best-trusted image.
Hong Kong provides the facility to the business owners to proceed with the offshore banking process. By opening an account, one can carry out the transactions at ease at any point in time. To know more regarding the benefits that you can avail, have a look at the Advantages of Offshore Banking.
How Can Business Setup Worldwide Help?
Since its inception, Business Setup Worldwide is helping numerous clients to set up their business offshore in various locations across the globe. Joining hands with experts not only saves time but also help you to utilize your available resources at ease. Here’s a guide on the Core Reasons for Hiring an Offshore Business Consultant, which will help you to understand the benefits at ease. If you hold any query or doubt, do get it clear by having a word with our professional business experts. Contact us today-we’d be glad to assist.