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Is your business back home encountering tough times, and you want a high-potential jurisdiction to boost growth? Have you reached the pinnacle of your business and now want to grow it further into a multinational? If the answer to one or both questions above is “yes,” it will be a great idea to consider registering your company in Hong Kong.
Hong Kong: A Brief History that Defines this Island
To understand the special benefits that come with moving your business to Hong Kong, it is important to start by looking at its history.
In 1942, the Qing Dynasty ceded Hong Kong to the British Empire following the signing of the Treaty of Nanjing. Then, the British ruled the island as a crown colony until 1997, when they returned it to the Chinese. This is the main reason why Hong Kong’s system, from law to language, is so much influenced by the British. For example, it is pretty easy to get English-speaking staff for your company in Hong Kong.
Since gaining independence in 1997, Hong Kong has operated as a Special Administrative Region of China. This implies that although it’s a territory within China, it enjoys a huge deal of autonomy. For example, the island makes its own laws and development agendas. With this autonomy, Hong Kong has developed a business-based economy, which is primarily focused on supporting businesses as the primary sources of revenue. So, if you register a company in Hong Kong, expect impressive support to reach its full potential.
Special Benefits to Expect from Taking Your Business to Hong Kong
The main advantage that comes with expanding your business to Hong Kong is the attractive low tax regime. The island uses a two-tiered tax system, where the first HK$2 million of assessable profit is taxed 8.25% in line with Schedule 8 of the Inland Revenue Ordinance. For any additional assessable profit above HK$2 million, you have to pay 16.7% corporate tax, the standard rate. Other benefits include:
Closer Economic Partnership Agreement (CEPA)
One of the main reasons you should target Hong Kong is that it does not just give access to the local market but also mainland China. Hong Kong has signed the Closer Economic Partnership Arrangement (CEPA) with China, a free trade arrangement that helps companies in Hong Kong to access the Chinese market easily. Simply put – products coming from Hong Kong enjoy zero import tariffs when getting into Mainland China. Note that this applies to selected areas, including legal, logistics, mining, and audio-visual.
Well-developed Infrastructure
A good investment jurisdiction should have a well-developed infrastructural system, such as transport network, internet penetration, and electricity, and Hong Kong has some of the best. For example, the island is one of the leading sea and air cargo hubs on the globe, accounting for approximately 1/3 of exports originating from China. Because of the good infrastructure, transporting raw materials, moving finished product and labor, and communication for your enterprise will be cheap and convenient.
These benefits are only a few of the long list of what your company will get after incorporation in Hong Kong. Others include skilled talents, supportive government policies, and economic stability. To enjoy all of these benefits, consider working with a suitable agency of experts. These professionals can help you to not only register your firm but also ensuring it grows rapidly in Hong Kong and beyond.
