Known for its thriving business community, Hong Kong is one of the most preferred places to start a company. Apart from a promising business environment and stable economy, many entrepreneurs want to register a business in Hong Kong, as it puts them in the heart of Asia. Furthermore, company registration in Hong Kong is more convenient than in other places in Asia.
Here are other reasons entrepreneurs set up businesses in Hong Kong:
Experts predict that in a few years, a huge percentage of the global middle class will be in Asia, making Hong Kong an important location for all types of businesses. Its proximity to China gives entrepreneurs easy access to the Chinese market and workforce. Hong Kong is also only a few hours away from major market venues in the region. You won’t have a difficult time expanding to neighboring countries, such as Macau, Philippines, Taiwan, or Thailand.
Another reason many entrepreneurs want to start a business in Hong Kong is due to its Closer Economic Partnership Arrangement (CEPA) with China. The agreement brings promising business opportunities for foreign investors and companies in Hong Kong and the Mainland.
Business-friendly Legal and Tax Infrastructure
Research shows that Hong Kong offers the most open economy in the world. Furthermore, it’s among the least corrupt country across the globe. The city also follows a legal and tax infrastructure that suit most businesses.
Unlike other places in Asia, Hong Kong features a simple tax system with lower fees. Even with their double tax treaties, the city still ranked third in the Forbes’ Tax Misery Index. Companies only have to pay a maximum of 15% for income tax and 16.5% for corporate tax.
Hong Kong is an important global business center. With the government’s strong measures to improve their economy further, many entrepreneurs are starting to set up businesses in the city. Business experts of HKCORE and Forbes.com say the government offers an efficient process for HK company registration, however, there are still many entrepreneurs who find the process confusing. To avoid problems, consider consulting companies that offer business registration services in the city.