Company formation in Hong Kong is among the most popular business options available. Many expatriates and local business people choose to establish a business in Hong Kong, which can be a perfect alternative to traditional English-based businesses. The advantages of company formation in Hong Kong are relatively numerous, and they come in various forms. Some of the more prominent ones include the following.
Tax benefits. As a taxpayer, you are entitled to variousservices when setting up a business in HK . One of the most prominent tax benefits is the Foreign-Trade Zones Allowance. It means that your business can have its commercial zone in Hong Kong, where it can transact in the open market and earn income from every activity done in that zone. For instance, your business can operate warehouses in the Chinese province of Ningbo and get paid for every truck or van that comes to your warehouse.
We are opening an office. For many expatriates, company formation in Hong Kong is the easiest way to establish a home office. Since all laws and procedures related to company registration apply in this regard, there is no need to worry about registering correctly or paying the correct amount of taxes. If you write in the right office, the government will promptly issue a copy of the Companies Registration Certificate to your office, enabling you to operate an official branch in the financial district of Hong Kong.
Access to a global economy. Companies are always on the lookout for new markets to penetrate, and a company formation in Hong Kong gives you access to a diversified customer base. You can tap the Chinese market’s trading system and the open market of the US and European markets. Access to these markets means that your sales are virtually guaranteed. But do not think that by being accessible to a broader base of customers, you have to compromise on quality because you still need to set up an effective marketing strategy.
Business license. When you set up a business in Hong Kong, you immediately obtain a business license. It permits you to operate a limited company, so you can form a partnership, have limited liability, run your business, and run it at any address in the city and at any time. Even better, getting a license to operate a business in Hong Kong will give you instant access to funds. Without any hassle, you can withdraw capital from ATMs in Hong Kong very quickly.
Business tax. When you register a business in Hong Kong, you automatically become a tax-paying company. It means that you must pay income tax to the government on the amount of income you earn. In addition to this, you must pay corporate tax on the earnings of your business. It makes it even easier for you to comply with your obligations to pay taxes and save money in the process.
Opening certificate. Once you register your business, you receive a certificate of registration. The certificate lets other people know that your company is legitimate and established correctly in the business world. It is a requirement when you start doing business in Hong Kong.
Other documents. You may also need to register your business’s contact details in Hong Kong, including your name, address, phone number, and email address. You must also indicate where you want to conduct business and for how long. After all these documents are successfully registered, you can already run your business in Hong Kong and run it according to your plans.