How do I grow my enterprise into a multinational with a high-profit margin and excellent reputation? The answer is pretty straightforward – good management. However, there is one more thing that you need to get right when working on how to grow your business into a multinational – the location. Most of the successful brands, from Barclays Bank to MacDonald’s, have achieved their success because of their offshore presence, and this post will look at Hong Kong as one of the leading investment jurisdictions.
For about 20 years, Hong Kong has featured at the top of the World Bank’s Ease of Doing Business reports, and you can count on it to serve as the launching pad for your business to succeed. In this post, we will highlight the main benefits of opening a business in Hong Kong and outline the main steps to follow:
Special Benefits of Incorporating a Company in Hong Kong
Whether you are new to business or have been in operation for some time, the main question you might have is, “Why Hong Kong?” Check the following special benefits that make it stand taller from other jurisdictions in the Far East and across the globe:
- Hong Kong is an International Junction
The most notable benefit of Hong Kong as a place of business is that it is strategically located in the heart of ASIA. Once your business is legally incorporated in Hong Kong, you can easily reach most of the neighbors, from Japan to Malaysia. China, which is a huge market of more than 1.2 billion people, is also easily accessible. What a big market to explore for your Hong Kong incorporated business?
- Hong Kong is the Word’s Freest Economy
If you take a closer look at most countries on the globe, they are run on the principles of protecting the local businesses. However, Hong Kong operations are hinged on the premise of free markets, free enterprises, and free trade. This implies that after company formation in Hong Kong, you have equal chances for success to other enterprises. All that you need are good strategies, quality products, and some professional support.
- Straightforward Tax Regime
For most entrepreneurs, the best business location is the one that comes with low taxes because they are able to keep the bulk of their profits. In Hong Kong, the taxes are not just low, but the system is also pretty straightforward. For example, personal income tax starts at 2%, while the corporate tax is set at 16.5% for incorporations. Exporting products to China is also tariff-free because China has signed the Closer Economic Partnership Arrangement (CEPA) with Hong Kong.
These are only a few of the benefits to anticipate for incorporating your company in Hong Kong. Other benefits that you will also enjoy include a supportive regime, well-developed infrastructure, and an educated workforce.
Company Formation in Hong Kong: What Steps Should You Follow?
Now that you have seen the benefits that come with running a business in Hong Kong, how exactly do you go about incorporating it? Although the Hong Kong administration has simplified the process of company incorporation so much, it is still a herculean task because of the long list of documents that need to be prepared, the search for a physical office, and finally, identifying a company secretary. This is why you should work with an agency for company formation without flying to Hong Kong. Here is how it works.
- Identify and contract an agency to help you with company registration.
- Send your details, such as particulars of shareholders, and the experts at the agency will prepare the documents needed for company incorporation.
- The agency incorporates the company for you fast and cost-effectively.
- If you want, the agency can also serve as your company secretary and address.
Hong Kong is a business paradise as said by GuideMeHongKong, and you should not be left behind as others race there. It has one of the best environments for business, and you can count on it for growth into a multinational. The agency that you contract for company incorporation in Hong Kong might also come in handy to help you with crafting strategies for success.
