Hong Kong: An Investment Paradise You Cannot Miss! - ALCOR FUND


Hong Kong: An Investment Paradise You Cannot Miss!

Hong Kong: An Investment Paradise

For about 20 years, Hong Kong has persistently featured at the top of ease of doing business reports by the World Bank. But that is only the tip of the iceberg! A deeper look reveals it is a jurisdiction built on pro-business pillars, which explains why most offshore businesses to Hong Kong flourish. So, if you have a business back home, it is time to take it to the next level, and Hong Kong can be that excellent gateway. But, first, you need to register a company in Hong Kong.  

In this post, we take a closer look at Hong Kong to reveal the primary benefits to anticipate for business registration in Hong Kong. We will also tell you the easiest way to register your company and grow not just in Hong Kong and Asia-Pacific but globally too. 

Special Benefits of Company Formation in Hong Kong 

Special Benefits of Company Formation in Hong Kong

The most notable benefit of expanding offshore or starting a company in Hong Kong is the pro-business administration. Unlike many jurisdictions, Hong Kong is an island with no land for agriculture or minerals. To support its development, the administration relies on businesses for revenue generation. For example, they allow 100% foreign shareholding of companies. Other benefits to anticipate for incorporating a company in Hong Kong include

Low and Straightforward Tax Regime 

How much do you pay as taxes for your company back home or in other jurisdictions? If you check carefully, the chances are that Hong Kong will be more favorable. Let’s look at some of the examples. In Hong Kong, the corporate tax is 16.5% for all companies. However, the first HKD 2 million is charged only 8.25%. This means that you are sure of having more funds to drive company growth.  

Apart from the low profits tax, the Hong Kong tax system has more to offer. For example, Hong Kong does not impose withholding tax on interests, dividends, and rents. Withholding tax is only made on payments done to non-residents for use outside Hong Kong.  

Hong Kong is the East-West Junction  

The strategic location of Hong Kong makes it the perfect point for businesses targeting rapid growth because it is a significant junction between west and east. Take the example of Hong Kong port. It is a very busy hub serving both East and South-East Asia. It is also the main gateway to Mainland China and an important part of the Maritime Silk Road. This is the kind of profile that most investors want to see when looking for an offshore jurisdiction for business.  

Once your business is correctly incorporated in Hong Kong, you will be able to reach the rest of Asia-Pacific (APAC) countries. Put it this way: “Hong Kong has a population of 7.5 million, but the entire APAC boasts over 4 billion people. You can comfortably partner with suppliers, traders, and other businesses in North Asia and South-East Asia as an international junction. You can never go wrong with Hong Kong.  

Easy Expansion into the International Market  

If your business’s local market is limited or dwindling from growing competition, Hong Kong is waiting to help you go global. So, are you ready?  

Hong Kong has entered into multiple bilateral trade agreements with different countries. This make it easy for businesses to go global. For example, the jurisdiction has signed the Closer Economic Partnership Arrangement (CEPA) with China that allows companies to export most products to China tax-free. Countries with bilateral trade agreements with Hong Kong are Australia, Chile, Switzerland, and Iceland.  

These benefits indicate Hong Kong is a jurisdiction that is ready to offer all the support you need for takeoff. Remember that the first step is getting your company registered in Hong Kong. To enjoy all the benefits we listed above and a lot more, make sure to work with an agency of experts. These professionals can hold your hand, helping you craft the right business strategies and take advantage of every opportunity for fast growth.  

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