Introducing Hong Kong
Located in East Asia on China’s southern coast, Hong Kong is one of the most unique places around the world where Eastern cultures, philosophies and traditions quite literally meets western cultures, ideas, and beliefs. As a former British colony and current Special Administrative Region of China, Hong Kong is home to a rich exceptional culture filled with multiculturalism and differing ideas. From a business standpoint, Hong Kong puts Asia on the map. The city is one of the most important international investment destinations in Asia, being a key financial hub in the region ranked 3rd behind New York and London as a global financial centre. Hong Kong owes its success to its key advantages and experience as an international business city. As a top location to establish a company in the Asia-Pacific region, this has made Hong Kong one of the top choices for overseas investors and entrepreneurs to opt in, invest and incorporate in their business and investment into the Hong Kong market. In this article, Primasia will be going over some of the major reasons people choose Hong Kong over other international business hubs and what are the benefits for you as an entrepreneur and investor for investing in the region.
Why Hong Kong
As stated above, Hong Kong is one of the largest financial centres in the world. Hong Kong is also considered by many as one of the 10 largest banking centres. Hong Kong offers a dynamic, investor friendly and resilient economy for those that want to invest in Hong Kong. As a multicultural community, Hong Kong has both an internationally informed, educated, and affluent domestic market and an immediate proximity to China which is the world’s second largest economy and one of the fastest growing economies in the world. A defiant and resilient economy, Hong Kong has endured and weathered many potential worldly complications such as both the Asian financial crisis in 1997 and global economic downturn in 2008. Despite these setbacks, Hong Kong remains an ideal international business hub for both foreign and local investment.
Benefits of Investing in Hong Kong
There are other several reasons why Hong Kong remains one of the main choices for investors who wish to expand to the Asia-Pacific area. Here are some benefits below:
Being located near Mainland China, there are many services and methods which offer you and your business easy access to not only one of the biggest markets in the world but also to other markets in the Asia-Pacific region. If you wish to travel to and from Hong Kong to one of China’s business cities such as Beijing, Shanghai or Guangzhou, travel will be organized and facilitated for you as business owners have the convenience of travelling back and forth in a single day if they wish. In addition, due to the long trading history between Hong Kong and Mainland China, not only are Hong Kong companies familiar entities to the mainland authorities, facilitating easier set-up in China, but Hong Kong’s long standing Double Tax Arrangement and CEPA agreement (Closer Economic Partnership Arrangement) with Mainland China mean that businesses and business owners enjoy preferential tax and trading terms with China. Hong Kong therefore offers both a significant marketplace in of itself and could potentially be your focus base which you can use to springboard yourself as a gateway to the Chinese market. It is a known fact that many companies use their initial investment into Hong Kong as part of their marketing strategy when they want to expand their business to China.
The workforce in Hong Kong is also a major plus for investors, with many local talents in the area combined with foreign employees who have chosen to move to Hong Kong in search of business opportunities. According to the Global Competitiveness Report issued in 2019 by the World Economic Forum (WEF), Hong Kong is one of the locations in the world where it is easiest to find skilled employees.
Ease of doing Business.
Company formation in Hong Kong is a fast and easy process with opening a bank account in the area all part of the facilitated procedure. Here at Primasia, we have a team of individuals which specialises in company formation and company incorporation services in Hong Kong. We offer a package deal to all our potential and current clients which offer complete assistance to those that are interested in opening a business, from the earliest steps such as choosing a bank and opening a corporate bank account to final registration procedures and licensing applications. If you wish to learn more about how to open a business in Hong Kong or about the Hong Kong company incorporation process, please clink the links provided.
Hong Kong has a simple tax system with a low taxation regime, compared to other international business hubs in the world such as Beijing, Shanghai, and Tokyo. Hong Kong also encourages pro-business governance with employer-friendly legislation to encourage business to start-up and incorporate in Hong Kong. A two-tier corporate income tax rate applies to companies: 8.25% on the first HKD 2 million assessable profits and 16.5% on the remaining profits (lower rates apply for unincorporated businesses).
Good Modern Infrastructure
Hong Kong is well connected and has developed a stable modern infrastructure to meet the demands of an ever-growing city. Around Hong Kong, there are several industrial or business parks peppered from the central business district in Hong Kong Island to the urban scenery of the New Territories. These business parks come provided with fully complete facilities along with greatly reduced business startup costs. If you wish to learn more about our science and technology parks during the incorporation phase, more information will be available upon request from one of our Primasia company incorporation experts.
With all the business-related benefits combined with the good conditions for living and relocating, this would make Hong Kong a preferred location to move to and open a business in the Asia-Pacific. Many foreign entrepreneurs once they have established a company in Hong Kong sometimes opt to move to the city on a more permanent basis. This is often because the rich mixture of cultures, the cosmopolitan lifestyle and people who make up the uniqueness of this location is more often an attraction both business-related and personal-related.
If you wish to start investing in Hong Kong in 2021, our team here at Primasia can help you get started with company incorporation and assist you throughout the needed steps. Primasia can help foreign investors in setting up corporate bank accounts, advise on set-up and structuring of entities in Hong Kong tax, employment, social security, or any other legislation. Primasia can also advise on a variety of regulatory and business issues in both Hong Kong and China and can also, through our extensive network, introduce anyone wishing to invest in Hong Kong to other suitable and reputable service providers and the appropriate government departments for assistance with grants or licensing issues, thereby helping you and your business get off the ground. For more information about Hong Kong and investing, please click here to visit the Primasia Corporate Services website and learn more about our company’s services here in Asia, as well as the wide range of other service we offer.
Primasia Corporate Services is a Hong Kong based corporate services provider that has been supporting its clients in Asia for over three decades. Among several of our services, Primasia Hong Kong (Primasia) offers our clients Online Accounting services, China Company Incorporation services, Virtual CFO services, MPF Filing services, Profit tax filing services, Employment return filing services, Wholly Foreign-Owned Enterprise (WFOE) incorporation-, and registration services etc. One of our services which we are proud to be offering our clientele is our investment visa and working visa Hong Kong services.
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Hong Kong Headquarters: Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wan Chai, Hong Kong