Top 5 Benefits of Hong Kong Company Registration
Hong Kong is a renowned global business city, especially as a centre of financial markets. After New York and London, HK is recognized as the third largest financial hub in the world and this could improve further after Standard & Poor's rating for HK was improved to the highest triple A level rating. With a per capita GDP of approximately US$32,000 (IMF 2010 / current prices), the city's results are similar to that of the European Union and ahead of many larger nations. Considering the importance of the financial sector to HK's economy and the impact of the financial crisis, demonstrates why Hong Kong is a popular and valuable jurisdiction.
1. Social and Political Environment
Hong Kong holds impressive rankings in global business surveys such as being the most business efficient and the 2nd most economically efficient in the world (IMD World Competitiveness Yearbook). The country is also ranked as the 13th least corrupt country in the world (Transparency International - Corruption Perceptions Index 2010). HK has a stable economic and political environment with a pro-business government and an independent legal system. For these reasons it is not surprising that the country is a popular choice for regional operations in Asia, with 1,252 regional headquarters and 2,328 regional offices (Hong Kong SAR Government's Census & Statistics Department).
Strategically located in close proximity to China, Hong Kong plays a vital role in accessing the Mainland China market for many foreign entrepreneurs. It is just one hour's drive from the world's largest manufacturing region, the Pearl River Delta, which produces 30% of China's exports. Hong Kong accounts for a large share of inward investment to Mainland China and China is the largest trading partner for HK. The country's reputation as a global financial powerhouse attracts Chinese companies for primary and secondary listings to access Asia markets. During 2010, the Hong Kong Stock Exchange (HKSE) became Asia's second largest stock exchange in terms of market capitalization, behind the Tokyo Stock Exchange (TSE). HKSE overtook Shanghai Stock Exchange partly because many Chinese companies also see the country as an efficient avenue to expand business within Asia. Being in the centre of Asia, HK is also efficient in terms of links to international markets. The HK airport is within 5 hours flight to all major trading jurisdictions in the region.
Hong Kong is one of the most modern cities in the world. It is well equipped in terms of infrastructure such as transportation, telecommunications, IT connectivity and utilities. Combining the world-class international airport with efficient logistics facilities such as the cargo airport and shipping container port, makes HK attractive for international business that relies of efficient transport of human personnel and products around the world.
4. Policy and Taxes
Companies that incorporate in Hong Kong also benefit from its low and simple tax system. With a corporate tax rate of 16.5% (maximum) and personal income tax peaking at 15%, the country has the 3rd lowest tax misery in the world, as rated by Forbes' Tax Misery Index. Company registration in HK also benefits from having no sales tax or VAT, capital gains tax, no withholding tax or dividends tax and ultimately, despite providing such significant tax benefits, HK is not perceived to be an international tax haven.
5. Company Registration Requirements
The Hong Kong company registration process is relatively straight forward. The main requirements for HK company formation are: - confirming the company name and corporate structure - confirm the details to meet the HK company law requirements which include: i) minimum one company director (doesn't need to be resident in HK), a Hong Kong resident company secretary (director and secretary cannot be the same person), a minimum issued capital requirement of HK$1. - Register the business - Operational requirements such as opening a Hong Kong corporate bank account, setting up office (virtual office is an option), securing employment visas etc.
Hong Kong is an excellent location for international entrepreneurs to register their business. Besides benefiting from the geographic location to the booming China economy and an efficient tax system, HK is a diverse multi-cultural environment that is efficient for international business and exciting as a place to live.
Lawrence Smith is a Marketing Assistant at Healy Consultants.
Healy Consultants is a leading corporate services firm that assists entrepreneurs and investors with Hong Kong company formation requirements, along with other international jurisdictions. The firm provides a range of services for company incorporation, tax planning and offshore banking. More information on our global corporate services can be found by visiting http://www.healyconsultants.com.