If you have a company in Hong Kong, it is strategic that you register it so that you can leverage your business to thrive in a global competitive environment. Perhaps many are doing this because they want to take advantage of the stable business environment, favourable tax policies, and unique opportunities for networking and growth.
Business-Friendly Environment
You can take advantage of the straightforward and fast way of registering your business in Hong Kong. In fact, you can complete the process in just a few days. That is because the government provides efficient online services in terms of company registration and compliance.
At the same time, it offers low corporate tax rates. You also need not pay for VAT, capital gains tax, or withholding tax on the dividends. Most of all, its simple regulatory framework provides transparent and business-oriented relations that will make compliance easier.
Gateway to Mainland China
The country is strategically located as a gateway for businesses. This is quite suitable for those who are looking for access to the Mainland China market. That said, Hong Kong companies can enjoy preferential treatment when trading with China. Furthermore, it serves as an ideal base for the management of cross-border operations.
Global Financial Hub
Businesses can take advantage of the robust banking services and access to international funding in Hong Kong. More importantly, it is home to major stock exchanges and capital markets. In addition to that, the Hong Kong dollar is pegged to the US dollar, which ensures that the currency is quite stable. It also has no restrictions on foreign exchange or capital movement, which makes it easy to repatriate profits.
International Trade Benefits
When you register your business in the country, note that it is also a major location for international trade. This is due to the fact that it is ranked highly in global indices for economic freedom and ease of doing business. Other than that, the country also has a strong shipping and logistics infrastructure that supports global supply chain management.
Ideal for Offshore and Online Businesses
One of the reasons why many businesses are using Hong Kong as a target for offshore operations is the tax exemption. That is because profits not derived from the country are not taxed. This is also an excellent base for e-commerce and digital businesses targeting Asia-Pacific markets.
How to Make a Business Account in Hong Kong
You have to choose a particular business structure if you are going to consider company registration in Hong Kong. So whether your business is a private limited company, sole proprietorship, or partnership, you need to determine it first before you proceed to the next step.
Note that you still have to get your business name approved. So, you have to ensure that the name is unique and complies with the regulations in the country. There are also documents that you need to prepare for the processing of your registration.
After ensuring the documents, you have to submit them and pay for the necessary fees. This is to be filed with the Companies Registry. Furthermore, you have to obtain a business registration certificate, which is mandatory when operating in Hong Kong. Then, you have to open a corporate bank account because it is essential for managing business finances.
