Many investors and entrepreneurs from all over the world have chosen to set up a business in Hong Kong. Hong Kong is regarded as one of the most suitable locations in the world for the establishment and operation of a business because it is a location which is very conducive to the conducting of business operations. The government of Hong Kong has taken steps to make it easier for people to start a company in Hong Kong. Its high degree of ease of conducting business activities, attractive tax regime, lack of corruption, and immigration policies which are friendly to foreigners are just some of the factors used by Hong Kong’s government to facilitate the establishment of businesses there.
Ease of Conducting Business Activities
Hong Kong is renowned for being an easy place to incorporate a company. The incorporation of a company in Hong Kong can be completed much sooner than in almost any other part of the world. Hong Kong is also home to outstanding infrastructural facilities which have vastly improved the quality of business premises. Intellectual property rights of business owners receive much respect in Hong Kong. There are also various channels for the resolution of business disputes which may be utilized by any Hong Kong-based business at any time.
Attractive Tax Regime
The simple and business friendly tax system of Hong Kong has encouraged many to set up a company there. This is because taxes are a primary concern for any entrepreneur who plans to establish a company in a particular location. Hong Kong’s tax rates are some of the lowest in the world. The lowest rate of personal income tax in Hong Kong is 2% while the highest is 17%. The corporate tax rate of Hong Kong is 16.5% of assessable profits for corporations and 15% for unincorporated businesses. Hong Kong also does not impose any value added tax, withholding tax on dividends and interest, capital gains tax, sales tax, or collection of social security benefits.
Although Hong Kong’s tax regime is extremely attractive, some might not completely understand every important detail of the tax system of Hong Kong. However, we at Paul Hype Page & Co are able to solve any Hong Kong tax issues which you might be facing. Our tax experts will provide you with suitable guidance in order to enable you to better understand how you and your company are to be taxed by the Hong Kong tax authorities.
Lack of Corruption
Many businesses owners choose to establish a company in Hong Kong because of its government’s fervently pro-business stance which is guided by free-market, capitalistic principles. Hong Kong is also one of the least corrupt locations in the world. According to the Corruption Perceptions Index which ranks countries and territories by their lack of corruption, Hong Kong ranks 16th in the world and fourth in the Asia-Pacific region. In 1974, the Independent Commission Against Corruption was established to combat corruption there. Today, it deals with cases of public and private sector corruption alike
Hong Kong’s immigration policies are friendly to foreigners. Citizens of almost every country and territory of the world are allowed to enter Hong Kong without a visa and remain there for durations ranging from seven to 180 days. Short-term visitors may conduct business activities and sign contracts if they have chosen to enter Hong Kong by using either a visitor visa or an entry permit. The government has also introduced provisions for work visas to cater to the needs of business owners who either plan to move to Hong Kong for business purposes or who are interested in hiring foreigners to work in their companies. Foreigners who intend to operate a business in Hong Kong may relocate there after they have applied for and received a corresponding work visa. In Hong Kong, there are also various policies and schemes in place which facilitate the employment of foreign professionals, the employment of professionals from mainland China, and the entry of foreigners who plan to invest in Hong Kong companies. Those who are eligible may also receive dependant visas.