Apart from being the gateway to China and the rest of Asia, Hong Kong is a sight to behold, from colorful streets bustling with numerous activities to a spectacular skyline, marked by impressively defiant skyscrapers. The vibrant city is popularly referred to as the city that never sleeps and rightly so thanks to a thriving late-night economy. Hong Kong streets are full of life no matter the time or day.
If you are thinking of investing overseas, Hong Kong is a perfect choice. As Asia’s leading commercial hub, favoring a wide range of businesses, there are more than enough reasons for investing in Hong Kong. The highly industrialized city has won the heart of many enterprises and multinationals for various reasons, including:
Hong Kong Company Incorporation Process
Setting up a business abroad is not a walk in the park. Some cities are known for administrative bottlenecks that edge out foreign firms. Fortunately, this is not the case with Hong Kong. Starting a business in Hong Kong is relatively easy due to a straightforward process that can be completed in as little as two weeks.
It is advisable to seek the services of professional firms that specialize in business registration when starting a company in Hong Kong. These firms greatly simplify the HK incorporation process by taking care of the entire registration process on your behalf, including business location, bank accounts and taxation matters, saving you time and providing immense value for your money.
Hong Kong Tax Rate
Hong Kong’s taxation system is greatly simplified, favoring investment and encouraging compliance. Businesses have three types of tax obligations in Hong Kong, which include a salary tax on income, profits tax for registered companies and property tax, charged on property located in Hong Kong.
Tax weary corporates will be pleased to find out that standard taxes like VAT, withholding tax and capital gains tax do not apply in Hong Kong. Taxes here are friendly to new companies and first-time employees. A case in point is that the first HK$ 132K of personal income is tax-free. The taxation rate for incomes that qualify ranges from 2% to 17%.
Hong –Kong prides itself in having one of the world’s most modern and efficient transport infrastructure. The global hub is well connected to other cities and parts of the world through a reliable and extensive transport network that incorporates flights, subway trains, public buses, hotel shuttle buses, minivans, taxis and ferries to facilitate the seamless movement of goods and people.
The Hong Kong Airport is renowned for being one of the world’s busiest airports, providing access to mainland China and the rest of the world. Major shipping lines have offices in Hong Kong to provide haulage of cargo to most global destinations. Exportation and importation businesses are poised to succeed in Hong Kong due to the availability of manufactured products and convenient shipping solutions.
Strict Anti-Corruption Measures
Corruption is a significant deterrent to businesses as it drives the cost of business upwards. It creates an unfair advantage for rich companies who thrive by bribing officials to enter the market. As a result, integrity-driven firms are locked out of business while corrupt firms get the market’s lion share. This distortion of competition discourages investment and hampers development.
Hong Kong is a beneficiary of China’s stringent anti-corruption measures. China treats corruption cases as serious crimes, attracting hefty fines and punitive measures, including execution. Citizens are also allowed to report corrupt officials, which is an effective deterrent against the vice. Controlled corruption means that businesses can compete fairly in Hong Kong.
Hong Kong Immigration Policy
Hong Kong’s immigration policy is liberal, allowing visitors to visit without visas for up to six months. For short periods, visitors who are in Hong Kong are empowered to meet business prospects and negotiate or endorse contracts with a visitor’s visa. This means that being a foreigner is not an impediment to your ambitions for starting a business in Hong Kong.
Hong Kong provides several types of visas for prospective entrepreneurs based on individual considerations. They include Investment Visa, Training Visa, Business Visit Visa, Travel Pass Employment Visa, Quality Migrant Administration Scheme Visa (QMAS) and Permanent Residence Visa. These Visas cater to diverse groups, meaning most people will qualify for a visit to the city.
Availability of Skilled Labour
As of 2018, Hong Kong had a seven million-strong population, which is ever-expanding. A large population guarantees the availability of skilled labour for firms setting up in the city. This population is familiar with Hong Kong business operations and is readily available to offer expert help for startups and multinationals.
Hong Kong’s educational programs are well-reviewed and touted as world-class, ensuring the continuous creation of a skilled workforce to cater to the city’s diverse labour needs. The city’s labour force is highly knowledgeable in global trade matters, which form the bulk of economic activities in this part of the world.
Hong Kong’s Strategic Location
You can conveniently travel to all of China’s major markets in a few hours from Hong Kong. Hong Kong is also well connected to the rest of Asia through hundreds of daily flights. Maritime services are well catered for in the city, which serves as a major port for haulage of cargo shipments to international destinations and is currently the world’s busiest cargo container port.
Hong Kong’s proximity to the Pearl River Delta means unlimited access to manufactured goods. This makes the city popular for bulk shopping, complemented by the city’s excellent transport infrastructure.
So, why set up a new business in Hong Kong? Hong Kong continues to stand out as a preferred destination for investors for the above reasons. The investment possibilities and opportunities in the city are numerous, from retail, electronics, information technology, service provision, to travel and hospitality. Most enterprises that survive in other parts of the world will most likely thrive in Hong Kong due to the numerous incentives for foreign investors that are typically less favourable or even absent in other parts of the world.