Most top corporates including Google, Facebook, Amazon, Apple Starbucks, Amazon, and Starbucks are increasingly investing in Hong Kong. Here’s why:
- Fewer tax burdens
- Business-friendly environment
- Reduced business risk
If you find these reasons exciting, remember to consider the following reasons to begin a business in your company. Since foreign investors are the core contributors to the dynamic economic growth, the Hong Kong government has started special programs for them.
The best way to spread out your wings in Hong Kong is through viable investment. Regardless though, to enrich this idea, even more, reach out for our consultancy services to enable you to set up a new company in Hong Kong from the group up.
Economic Growth Of Hong Kong
The core reason why you should go for hongkong company setup is its dynamic economy. This country prides itself on economic freedom both regionally and internationally. Quite simply, this freedom is enhanced by:
- Economic policies
- The open market of Hong Kong
- Transparent legal laws
- Efficient regulatory systems
- Property rights security
Invest In A Wide Range Of Sectors
It’s easier to start a business in Hong Kong compared to other countries. With a concrete business plan, the business registration process is less expensive and simple. Thus, many start-ups that hugely contribute to Hong Kong’s economic growth have sprung forth. In particular, the growing sectors of Hong Kong include:
- Information & Technology
- Financial Technology
- Education and learning
- Professional services
- Data analysis
Attractive Government Policies And Initiatives
Ideally, foreign investors prefer starting businesses in places where the Government gives them support. In Hong Kong, foreigners can enjoy 100% ownership rights. Hence, in addition to owning businesses, they’re free to enjoy the topmost positions in companies. The government of Hong Kong has recently started InvestHk, a department that not only offers free business investment promotions but also provides services to the foreigner companies as well.
Geographical Location Of Hong Kong
Located in Central Asia, Hong Kong offers businesses open accessibility to different trade markets, specifically mainland China. Hong Kong’s strategic location is one of the major reasons behind investors’ interests in this region. Needless to say, investors with easy access to a wider market base lookout for places to expand their businesses. Certainly, Hong Kong is a great option!
Excellent Banking Facilities
Since Hong Kong is a global leader in the banking sector, it offers its foreign investors multi-currency bank accounts. Besides exceptional banking facilities, Hong Kong’s corruption rate is lower than the situation in the UK, Germany, and USA.
Less Burden Of Taxes
Hong Kong’s corporate tax rate is way lower than in other countries because there are no VAT or dividend sales taxes here. The current taxes are 16.5% profit tax, 15% property tax and 15% salaried taxes. This low tax regime offer by the Hong Kong Government is one of the major reasons why companies are increasingly expanding businesses to Hong Kong.
Special Initiatives From Government
The government must start special programs as a strategy to attract foreign investment. More so, since the investors actively contribute to Hong Kong’s dynamic growth, the government has extended their helping hands to foreign investors. Economic growth is directly linked to investments.
The special programs offered by the Hong Kong government to attract foreign investors to hongkong company setup include market funds, loan funding, and incubator programs.
Easy Selling Of Corporate Shares
Selling shares can be a great way for business owners to expand their businesses. The owners can use the cash proceeds from the shares to develop their businesses. While the selling of shares is highly complicated in other countries, Hong Kong has a simplified approach to the same. The entire process is simplified. Hence, companies set up in Hong Kong can sell their shares to increase company assets.
Talented Labour Force
Hong Kong has a well-educated, strongly ethical and adaptable talented labor force. The region extends employment opportunities to professionals from overseas. Also, Hong Kong’s immigration policy allows their professionals to permanently relocate with their families so they settle here.
When it comes to infrastructure, Hong Kong has much to offer. It is endowed with exceptional logistics, railways, airports and telecom networks. The well-developed Hong Kong airport is interconnected with all the important airlines. Also, the excellent Hong Kong railway stations are well developed to offer the easiest means of transport from one point to another. The exceptional development of the deep-sea port of Hong Kong has earned it the title of the best means to commute in Hong Kong.
Aside from the rapid and dynamic economic growth, foreign investors have a keen interest in understanding the country’s initiatives and government initiatives before investing. Hong Kong always ensures the investors enjoy a business-friendly environment to carry out their businesses effectively.