Hong Kong is Asia’s business capital and the gateway to China, the world’s economic growth engine. Hong Kong has an unrivaled location with its central position in the Asia-Pacific region and its geographical proximity to the Chinese mainland. Travelling to and from Hong Kong to Beijing, Shanghai and other Asian cities can be done within one day.
The official languages of Hong Kong are Chinese and English.
Today, English is the language of preference in the government, business and tourism sectors. All official signs and public transport announcements, as well as most menus, are bilingual. As a visitor, you can expect to encounter minimal problems communicating in English as most taxi drivers, salespeople, tourism industry employees and police have reached competency levels of the language.
For all transactions completed outside Hong Kong, the tax rate is zero. Hong Kong taxes are among the lowest in the world, and their tax regime is simple and predictable. The Profits tax (or the Income Tax) rate is the same for foreign and local companies – a low 16.5 percent. The actual tax bill is often even less after various deductions and depreciation allowances. There is no capital gains tax in Hong Kong, withholding tax on dividends and interest. The salaries tax rate is at a maximum rate of 15 percent, imposed only on all salary income of individuals derived in or from Hong Kong. The salaries tax is demanded on a yearly basis and can be paid in two installments, usually between December and March. The property tax applies to owners of land or buildings situated in Hong Kong. There is no sales tax or VAT in Hong Kong.
Corporation tax:- 16.5%
Income tax :- 15% (and most pay less than this)
No capital gains taxes
No withholding tax on dividends
No interest tax (abolished in 1989)
Free trade is the life-blood of Hong Kong. As a result, it is one of the most open, externally-orientated economies in the world. Hong Kong embraces globalization of trade and services and is an active participant in international organizations that promote such activities. Hong Kong’s capital account is fully convertible, and there are no restrictions on foreign exchange dealings. Property, securities, gold and silver can be bought and sold by anyone, without restriction. With close relationship with Mainland China (under CEPA arrangement), all goods qualified as Hong Kong origin may be exported to the Mainland tariff free.
Singapore and Hong Kong are the only countries in Asia that allow foreign nationals to own 100% of the shares and don’t require locals to sit on the board of directors, although you do need a Hong Kong company or individual to be the company secretary.
A Hong Kong company allows you to open up a multi currency bank account.
Hong Kong is one of the most corruption-free economies in the world. Cronyism, influence-peddling and bribery receive zero tolerance here. This is due to their strong public administration as well as Hong Kong’s Independent Commission against Corruption (ICAC). The clean government ensures that companies are free to pursue their business interests on a level playing field without concern for corruption.
A virtual office in Hong Kong:-
You don’t need a physical address in Hong Kong.
You can operate your business at home or overseas and have no need to literally rent an office, so you can build up your company image. You only need to pay a relatively small fee for a Virtual Office Package to enjoy having a first class business address. It can also include various business packages from which you can choose, such as secretary telephone answering, receiving and retrieving fax service etc.
Good infrastructure is essential to the efficient operations of any business. Hong Kong offers one of the most advanced business infrastructures in the world. Hong Kong’s convenient public transport network opens up a wealth of options for businesses and families. It is one of only three airports in the world with a 5-Star Skytrax rating and has been ranked the world’s best international airport for eight of the past 13 years.
You don’t need to be physically present at the time of company incorporation. However, depending on the bank you choose, you may have to meet with the bankers personally in Hong Kong at the time of account opening.
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