Understand the Jurisdictions Setup Requirement Before Proceed Your Hong Kong Company Formation
Hong Kong is one of the most open economies in the world and an ideal business location for investors interested in accessing Mainland China markets. One of the most admirable things that attract lots of investors to the region is the fact that Hong Kong company formation comes with minimum bureaucracy and restrictions. And provided have all the required documents, the process of incorporating a new company may be completed in a matter of hours, if not minutes.
In Hong Kong, you will find a blend of free-market principles with a very low tax regime which is very attractive to a foreign investor for various reasons. For example, both inbound and outbound investments face no restrictions, whatsoever, and there are also no restrictions on the nationality of shareholders when it comes to company ownership. As such, foreigners have the freedom to invest in almost any business and claim up to 100% ownership of the business.
About the Territorial Tax System in Hong Kong
Foreign investors usually are very concerned about the tax rates in the jurisdictions where they will be setting up their ventures, and this is because they don’t desire to surrender a huge chunk of their profits to taxes. For a city like Hong Kong, the tax system is territorial. This means that all the profits generated from doing business in Hong Kong will be subjected to tax at a rate of 16.5%, but any foreign-source income will not be subjected to any form of taxation.
Additionally, there is no sales tax, withholding tax on dividends, inheritance tax, and capital gains tax. As such, the tax regime is so versatile and has turned Hong Kong into the preferred destination for corporations interested in expanding in low-tax jurisdictions.
Hong Kong Is a Major Financial and Commercial Hub
The other reason for increased foreign activities in Hong Kong is the fact that it is a major commercial and financial hub. It is the regional, as well as the business, headquarters of the Asia Pacific bloc and this makes it a crucial gateway for businesses interested in exploring Mainland China as well as for businesses in Mainland China that are interested in accessing the rest of the world. It implies that there are a plethora of business opportunities, given the amount of goods needed to and from Mainland China.
In addition to being a major financial and commercial hub, Hong Kong also enjoys an enviable political and economic stability. The rule of law and free flow of information are central to Hong Kong’s political and financial gains, and you can rest assured that with a successful Hong Kong company formation, you will be doing business in a very stable environment, with very business-friendly policies as well as access to a pool of highly qualified local talent.
Choosing the Right Business to Set Up in Hong Kong
In as much as you have a variety of option regarding Hong Kong company formation, it is imperative for you to know how to choose the right type of business setup in Hong Kong. In most cases, foreign investors prefer going for private limited companies as subsidiaries of foreign-based companies or as standalone entities. Foreigners also are at liberty to set up branch offices and representative offices in Hong Kong. Irrespective of your preferred entity, you need to have a full understanding of what you will be able to achieve with the entity prior to the registration. If you fail to choose the right entity, you could be severely restricted when thinking about expansion in Hong Kong.
Why Incorporate Your Company With Us
3E Accounting is a leading corporate worldwide provider with several years of experience in helping entrepreneurs incorporate various types of businesses around the globe. Our services are comprehensive and entail everything you will need for a successful Hong Kong company formation, including, selecting the right type of business entity. Whether you choose to go for a limited liability company or you are interested in a branch office, we will help you incorporate your preferred entity according to the laws and regulations of Hong Kong.
As a foreign company, you will be required to maintain a minimum presence in Hong Kong, and if you were thinking of registering an offshore company, the law requires that you have a registered office as well as a resident company secretary. But you don’t have to worry about such because they are well taken care of with our domiciliary services.
Additionally, we will also avail to you the necessary expertise in managing and administering your newly incorporated Hong Kong company. These include company secretarial services, shareholder relations, director responsibilities, financial and corporate compliance requirements and much more. With these and our Hong Kong company formation services, you will have the convenience of focusing on your primary business while we take care of the auxiliary concerns.