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Advantages of Hong Kong Corporate Formation

Author: Source: Date:2015/8/28 14:31:17 Click:97 TAGS:Advantages of Hong Kong Company Regsistration

Hong Kong Corporate Formation is one of Bsida's busienss services provided for investors home and abroad. There are lots of benefits after setting up a limited company in Hong Kong.


Advantages of Hong Kong Corporate Formation

1.       Superior Location

As two thirds of the global middle class will soon be from Asia, entrepreneurs from all over the world are taking interest in the continent, and being in the heart of Asia, Hong Kong is often a first choice. Hong Kong is within four hours flight from all of Asia's key regional markets.


Strategically-located in close proximity to China, Hong Kong also plays a vital role in accessing the Chinese market. Indeed, Hong Kong has taken various measures to position itself as a gateway to China with developments like the Shenzhen-Hong Kong Innovation Circle that encourages Chinese enterprises to undertake scientific research in Hong Kong. More obviously, Hong Kong's location being one hour's drive from the Pearl River Delta, the world's largest manufacturing region, gives Hong Kong access to the 450 million people consumer market in Southern China alone.


With Hong Kong's Closer Economic Partnership Arrangement (CEPA) with China, it is undoubtedly the most business friendly economy from which to take advantage of Asia's future opportunities.


2.       Free Tax & Legal System

In light of the fore stated business culture prevalent in Hong Kong, there is a logically business-friendly tax and legal infrastructure.


Hong Kong is ranked as the world's freest economy by the Heritage organization's 2009 Index of Economic Freedom and is also the 12th least corrupt country in the world (Transparency International - Corruption Perceptions Index 2008). As a whole, Hong Kong is a secure, efficient and reliable jurisdiction to conduct international business.


Companies that incorporate in Hong Kong also benefit from its low and simple tax system. With corporate taxes limited to a maximum of 16.5% and income tax peaking at 15%, despite having few established double tax treaties, Hong Kong has the 3rd lowest tax misery in the world, as rated by Forbes' Tax Misery Index. Furthermore, in spite of Hong Kong's recent agreements to commit to OECD tax principles, their client confidentiality guidelines remain strong.


Hong Kong people also benefit from having no sales tax, capital gains tax or dividends tax and ultimately, despite providing such significant tax benefits, Hong Kong is not perceived to be an international tax haven.


3. Gaining international credit by making use of Hong Kong's reputation


4. As an international financial centre, Hong Kong has multiple financing channels


5. With the absence of foreign exchangecontrols, funds can be circulated freely; foreign currencies can be exchangedand transferred as needed, and credit operations can be handled convenientlyand quickly


6. No limitation on business scope and simplefollow-up service


7. Tax needs to be declared just once peryear


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