Should I invest as an Individual or a Company?
Well, if you are stuck with this, let us first look at some of the benefits that a Hong Kong companies enjoy.
The companies that are incorporated in Hong Kong have numerous benefits, including low taxation rates that will ensure that your obligation expenses are significantly reduced.
Taxation is based on profits that are driven from the business operations but excluding those that are raised from the sales of capital assets. A single-Tier corporate taxation system in Hong Kong is at a rate of 16.5%, while the unincorporated businesses are taxed at a rate of 15% of the taxable profits or income. On the other hand, personal income tax and salaries are also taxed at a relatively lower price. The personal income tax is charged from as low as 2% and might up to 17% for the income of above HKD 132,000. Equally, your Hong Kong-registered company
Further, the process of registering a new company in Hong Kong is relatively easy and straightforward. Several options are available to the business owners to choose the right type of business that suits the investment that they are about to make.
A slew of government support
The other benefit that the Hong Kong government has for the companies in Hong Kong include incubator programme, grants, loans, and other financial support, including marketing funds. Hong Kong government gives companies special funding for technological and innovation ideas.
Recognised trademark registration
The other benefit is trademark registration. The trademark helps companies to be unique, thus making them stand out among their competitors and other business operations.
Incorporating a company in Hong Kong increases your opportunity to receive additional funding from the government and other financial institutions. It would be quite difficult to approach a financial institution as an individual than it is as a company when outsourcing for more funds to expand your business operations. Therefore, when you have a growth plan, then the best idea will be to incorporate a company in Hong Kong as opposed to working as a person.
In as much as there are no limitations to operating a business in Hong Kong as an Individual, it is, however, better to consider these numerous advantages that running a company in Hong Kong provides. Nonetheless, there are certain professionals like law, tutoring, or medicine that will most likely require an individual’s input and not a company. In that case, there will be no pressure in registering and operating a company as long as the professional activities are well planned, and the operations are within the expectations of the Hong Kong laws.