As being an international metropolis with ample information and opportunities, Hong Kong company formation gives unmatchable use of an estimated consumer market of 450 million individuals southern China alone. With sound infrastructure and complete legal system of its own, it gives you an advantaged financial & commercial environment to a lot of entrepreneurs and traders. Therefore, Hong Kong is a popular jurisdiction with international entrepreneurs seeking to penetrate Chinese markets, and a lot more people establish their own companies in Hong Kong with various purposes, which improve not just the image of the Hong Kong Incorporation itself, but the competitive ability within the international market. The following information will allow you to determine whether Hong Kong company formation is the optimum strategy through which to achieve this.
We know there are many reasons or factors can play a role in the achievements of business. While Hong Kong is considered among the best cities to build and manage a business, as it scores high on factors that matter to businesses. Below are the key benefits associated with establishing a business in Hong Kong and can serve to offer you the answers whether Hong Kong company formation is definitely the optimum strategy.
1. Being international center of information exchange and transportation hub. A focal point of maritime activities in southern China and is among the major ports around the globe in terms of tonnage of shipping using its facilities, cargo handled and the quantity of passengers carried.
2. World’s most dynamic economies driven through the principles of free enterprise, free trade and free markets open to all. No restriction on inward and outward investment, no foreign currency controls and no foreign ownership restrictions
3. Strategically situated in close proximity to China. Air, rail, road and sea links are modern and efficient and offer unrivalled usage of China’s booming southern provinces for most foreign entrepreneurs.
4. With very low tax rate (around 16.5% on net profit), tax exempt for income not incurred in Hong Kong (offshore income)
5. With Robust Infrastructure, stable social and political environment, Most businesses choose to set up operations in Hong Kong as it believed to be politically stable using a pro-business governance and free market principles.
6. Enjoy convenience of international banking system. A number of banks represent the interest of 32 foreign countries. The Hong Kong banking and financial services is regulated from the Hong Kong Monetary Authority (HKMA). The benefits and features of using Hong Kong for private banking, bank accounts, corporations and offshore asset protection are extensive.
Hong Kong Company Formation process is comparatively easy. The main requirements are:
1. Require at least One company director/shareholder and Hong Kong Company Incorporation secretary (above age 18 ).
2. Confirm the company name and corporate structure
3. The absolute minimum issued capital requirement of HKD 10,000, Paid-up capital requirement is simply the sum of one dollar.
4. Business scope. There is certainly almost no restriction in the area of business scope once you set up a Hong Kong company.
5. Operational requirements, like opening a Hong Kong corporate ousyuz account, putting together office (virtual office is definitely an option) etc.
If you want more information on Hong Kong company Formation or others like Tax Planning, you can refer to Conpak CPA Limited.