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.