Hong Kong is said to be the one of the best cities in the world, the persons desirous of having an Company in Hong Kong often asks for the benefits of incorporating an entity in Hong Kong (HK). Here are some points that may be helpful to understand this:
Facilitate easy business entry into China.
It’s location and political system ensure that either buying or selling into China is easier with a HK company.
English common law system.
The legal framework is similar to that of UK & US & laws are written in English for easy understanding.
No need for a local Director or Shareholder.
Many Asian countries requires at least one director to be resident of that country. However, there is no such requirement in HK, that will reduce costs significantly.
Perfect connecting point between The West and East
As the location of the HK is at the heart of the world, it becomes the most lucrative destination for business relations.
Freedom of capital
The minimum capital required is minimal and is only 1 HKD.
The Hong Kong follows territorial source principle of taxation, in which profits made outside of Hong Kong are tax-free (Online businesses use this incentive widely).
Also, there is no indirect tax in the form of VAT or GST in Hong Kong.
Attractive Tax Rates
Income earned inside HK is taxable at a competitive rate of 8.25%/ 16.5% after allowing the deductions & exemptions.
On the sale of company assets including the intellectual property rights.
No Dividend Distribution Tax
The dividends distributed by a HK Company is not taxable in Hong Kong
The incorporation process is completely online, & you will get the incorporation documents within a business day of final submission.
Apart from these, Productive work-place, world-class infrastructure, strategic location, stable economic, attractive tax regime, political environment, and pro-business environment, and an effective legal system are some of the factors that make the Hong kong as one of the best destinations for incorporating a company & having a business setup there.
Should you wish to Incorporate a Company in Hong Kong, please drop a email at email@example.com.