Hong Kong is the third city among renowned global business cities, right after New York and London. Recognized among the most significant financial hubs in the world, it has improved to the highest triple A level rating. With an impressive capita GDP of approximately US32, 000 it resembles the European Union standing tall ahead of the larger nations. With the importance of the financial sector to the economy and the impact of the economic crisis, Hong Kong is a famous and admirable jurisdiction.
1. Social And Political Environment
Hong King holds outstanding rankings in the global business. It is the second most economically efficient country in the world, according to the IMD World Competitiveness Yearbook). According to Transparency International – Corruption Perceptions Index 2010, the country is ranked as the 13th least corrupt country in the world.
Moreover, Hong Kong has a stable economic and political environment, not forgetting a pro-business government with an independent legal system. Certainly one of the reasons the country is a popular choice of regional operations in Asia. The country also has 1251 headquarters and 2328 regional offices (Hong Kong SAR Government’s Census and Statistics Department)
Located in China, Hong Kong plays a crucial role in accessing the Mainland China market, which is a perfect stop for many foreign entrepreneurs. You can save time with a one hour drive from the world’s largest manufacturing region (the Pearl River Delta), producing 30% of china’s exports.
In general, Hong Kong accounts for a large share of inward investment in Mainland China, with China as the largest trading partner for Hong Kong. The countries international reputation as a financial powerhouse attracts Chinese companies for the primary and secondary listing to get access to the Asia markets. In 2010, the Hong Kong Stoke Exchange (HKSE) became Asia’s second-largest stock exchange in capitalization, which was directly behind the Tokyo Stock Exchange.
HKSE came above Shangai Stoke Exchange partly because most Chinese companies view the country as an efficient avenue to expand business with Asia. As the centre of Asia, Hong Kong is also useful in terms of links with the international market. In addition to this, the HK airport is within 5 hours flight to all major trading jurisdictions in the region.
As one of the most advanced metropolitan areas in the world, Hong Kong is well equipped in infrastructures such as transportation, telecommunication, IT connectivity and utilities. A combination of the world-class international airport with efficient logistics facilities like the cargo airport, and shipping container port makes Hong Kong an attractive platform for global businesses. Majorly businesses that rely on active transport of human personnel and products around the world benefit from the wonderful infrastructure.
4. Policy And Taxes
A lot of companies that opt for company formation in HK benefit from its low and simple tax system. A corporate tax rate of 16.5 %( maximum) and a personal income tax peaking at 15$, it has the 3rd lowest tax misery in the world (according to Forbes’ Tax Misery Index). There also benefits in company registration in HK from having no capital gains tax, no sales tax or VAT, no withholding tax or returns tax and eventually. However, HK is not perceived to be an international tax haven.
5. Company Registration Requirements
The registration process in Hong Kong is a piece of cake. Mainly you are required to poses a proper company name and corporate structure to ensure that the company meets HK Company Law requirements. Which include a minimum one company direct( who does not need to be an HK resident), Hong Kong resident company secretary, and finally a minimum issued capital requirement HK$1 . You will also be required to register the business-with operational requirements such as opening a Hong Kong corporate bank account setting up an office, securing employment visas est.
Company formation in HK is perfect deal for international entrepreneurs to register their business. Apart from enjoying the geographical area, HK is also a diverse multi-cultural environment that is efficient for international trade and exciting as a place to live.
6. Productive Workforce
The country offers a highly-skilled, well -educated and trained workforce. Primarily a local talent pool of skilled specialists and business men who are known for their deep understanding of growing business culture.
Employees in Hong Kong are generally considered hardworking, competitive, continually seeking to enhance themselves. Even though English is the most applied language in business settings, you will be pleased to know that a great deal of the labor force can also connect with Cantonese and Mandarin.
7. Business Support And Assistance
Hong Kong has a number of remarkable associated programmers at the government and individual level, offering the best business support assistance. The programs help grow and develop your company in every aspect of the business.
A vast number of business support programmers and financial incentives encourage the growth of SMEs. Chief organizations like the Hong Kong Trade Development Council encourage international companies to do business in the Mainland and Asia, also assisting in Hong Kong Companies locating new markets.
Thanks to the Hong Kong Productivity Council, there is the use of more efficient methods throughout Hong Kong’s business sectors. This is why the support and consultation Center for company formation in HK is a comprehensive and informative and advisory centre for SMEs. There is also financial assistance available through some noted government funding schemes.