5 Benefits Of Relocating Your Company To Hong Kong

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5 Benefits Of Relocating Your Company To Hong Kong

Find out the advantages of the Hong Kong business registry that you should think about before doing so.

1. Simple Access To China

When it comes to doing business with China, Hong Kong consistently rises to the top of the list.

In terms of geography, Hong Kong seems to have the strategic benefit of being near to China, which opens up a lot more opportunities for company expansion into the Greater China market, particularly for startups.

China grants Hong Kong companies a number of benefits that make it simpler for them to reach the Chinese market.

These accords, particularly if you’re a foreign corporation wanting to enter the Chinese market, decrease the entry barriers for enterprises. The Chinese government previously implemented the CEPA and the Closer Economic Partnership Agreement in 2004.

It goes without saying that China is Hong Kong’s largest trade partner due to its connection, financial advantage, technological know-how, reliable infrastructure, and excellent marketing.

2. Economic Advantages

Hong Kong is a great place to start a Chinese company.

Hong Kong has one of the world’s lowest tax rates and a simple tax structure. This helps firms have cheap expenses and high profits.

This section doesn’t require much cash. Capital admittance conditions are minimal, so don’t worry. In the constitution documents, you don’t need to provide the maximum capital.

The profit tax rate is now much better; whether you are a local or foreign firm, the rate is as low as 16.5% for you, making operating your business in Hong Kong even simpler.

The two-tiered gains tax rate in Hong Kong is something you should be aware of, however.

Basically, the way it works is that the first $200,000 in profits you produce will be subject to an 8.25% tax, and the remaining $200,000 in profits will be subject to an additional 16.5% tax, subject to certain exclusions.

And to top it all off, there are no VAT or sales taxes in Hong Kong. Starting a firm here is more challenging due to the constrained tax base.

3. Laissez-Faire Economics

It is no secret that Hong Kong has one of the freest economies in the world in terms of commercial freedom, monetary integrity, and government openness. Additionally, you are essentially free to operate any kind of company here (as long as it is legal): consulting services, e-commerce, storing financial assets, trading, and more.

There are several advantages to Hong Kong, including the fact that few items, such as cigarettes, motor cars, methyl alcohol, liquors, and hydrocarbon oil, are subject to taxation. In addition, there are several tax exclusions and the option to excise various export-related charges.

If you need to send or receive funds from or to Hong Kong, Additionally, if you operate a company, you should be aware of the difficulty in implementing a respectable grade of foreign exchange service into your operations.

The good news is that your organization will find it simpler since these services are widely accepted in Hong Kong.

4. An Effective Workforce

There is no denying that Hong Kong is brimming with top-notch talent that is both highly competent and highly educated; the local labor often has studied overseas.

If you have a buddy who works for a Hong Kong firm or who runs a Hong Kong business, they will likely tell you that Hong Kong workers are more hardworking, competitive, and driven to grow personally at work (not to brag).

5. Liberal Immigration Policy

Another one of your main worries can be immigration. Additionally, more than 170 nations’ citizens are eligible for visa-free stays in Hong Kong, which normally last between 7 and 180 days.

If you have entrance permission or a guest visa and are just in Hong Kong temporarily, you are even permitted to execute contracts or have commercial conversations.

The work visa laws make it simple for you to relocate your staff here if you operate a company or want to open a new office in Hong Kong. 

When working with a reputable firm like Fintech Harbor Consulting, launching a business in Hong Kong is a breeze. Get help to register a company or to get a forex trading license in a flash.

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