Hong Kong business setup enjoys plenty of advantages, thus attracting numerous investors from home and abroad to invest there. Hong Kong is considered a major international centre for business. Reasons that Hong Kong is recognized as such a successful business center include location, a political environment and economy that are trustworthy, a tax and business approach that are business friendly, a world-class infrastructure and a productive legal system.
Main Advantages of Business Incorporation in Hong Kong
1. Hong Kong is a major trading entity and therefore the incorporation of a Hong Kong company is likely to be perceived as ‘legitimate’ and therefore less likely to be seen as a tax avoidance vehicle.
2. English is an official language and is the main business language. All reporting information and documentation can be produced in English.
3. The Hong Kong tax system is simple and straight-forward.
4. There are no restrictions on the use of foreigners as Shareholders or Directors at a Hong Kong company.
5. The incorporation of a Hong Kong company is simple and quick.
6. Low cost of incorporation and maintenance.
7. No minimum requirements for share capital.
8. Only one Director and Shareholder is required to form a limited liability company.
9. Due to the system of territorial taxation foreign source trade profit is not subject to Hong Kong income tax.
10. There is no capital gains tax in Hong Kong.
11. There is no withholding tax on interest, dividends and royalty.
12. Foreign dividends are not subject to Hong Kong income tax.
13. Tax credits for foreign tax paid are available in Hong Kong, however it is a subject to some conditions.
14. There is no net worth tax in Hong Kong.
15. Hong Kong has an excellent banking system and communications infrastructure.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
Previous：Hong Kong Company Setup: How to Determine a Name of HK Company
Next：Strike Off a Hong Kong Company