Hong Kong Company Formation and Its Advantages
As an international metropolis with abundant information and opportunities, Hong Kong company formation gives unmatchable access to an estimated consumer market of 450 million people in southern China alone. With sound infrastructure and complete legal system of its own, it provides an advantaged financial & commercial environment to many entrepreneurs and traders. Therefore, Hong Kong is a popular jurisdiction with international entrepreneurs looking to penetrate Chinese markets, and more and more people establish their own companies in Hong Kong with different purposes, which improve not only the image of the company itself, but also the competitive ability in the international market. The following information will help you determine whether Hong Kong company formation is the optimum strategy through which to achieve this.
We know there are many reasons or factors can contribute to the success of business. While Hong Kong is considered one of the best cities to establish and run a business, as it scores high on factors that matter to businesses. Below are some of the key benefits of setting up a business in Hong Kong and will serve to provide you with the answers whether Hong Kong company formation is the optimum strategy.
1. Being international center of information exchange and transportation hub. A focal point of all maritime activities in southern China and is one of the major ports of the world in terms of tonnage of shipping using its facilities, cargo handled and the number of passengers carried.
2. World's most dynamic economies driven by the principles of free enterprise, free trade and free markets open to all. No restriction on inward and outward investment, no foreign exchange controls and no foreign ownership restrictions
3. Strategically located in close proximity to China. Air, rail, road and sea links are modern and efficient and offer unrivalled access to China's booming southern provinces for many foreign entrepreneurs.
4. With very low tax rate (around 16.5% on net profit), tax exempt for income not incurred in Hong Kong (offshore income)
5. With Robust Infrastructure, stable social and political environment, Most businesses choose to set up operations in Hong Kong as it believed to be politically stable with a pro-business governance and free market principles.
6. Enjoy convenience of international banking system. A number of banks represent the interest of 32 foreign countries. The Hong Kong banking and financial services is regulated by the Hong Kong Monetary Authority (HKMA). The features and benefits of using Hong Kong for private banking, bank accounts, corporations and offshore asset protection are extensive.
Hong Kong Company Formation process is relatively straight forward. The main requirements are:
1. Require at least One company director/shareholder and a Hong Kong resident company secretary (above the age of 18 ).
2. Confirm the company name and corporate structure
3. A minimum issued capital requirement of HKD 10,000, Paid-up capital requirement is only the sum of one dollar.
4. Business scope. There is almost no restriction in the field of business scope when you set up a Hong Kong company.
5. Operational requirements, like opening a Hong Kong corporate bank account, setting up office (virtual office is an option) etc.