Hong Kong Benefits
Why Hong Kong?
Because Hong Kong has an established reputation as an international business center with few barriers to trade, low taxes and maintenance costs, and its history and unique geographical location, with its tariff-free port, allow it to act as a bridge between Asia and the world. It is the best option to expand your business in Asia.
Simple Corporate Regulations
Typically, a company in Hong Kong can be established in five days, not weeks or months. Saving time is just one of the benefits of simple application and documentation requirements; Foreign directors or shareholders do not even have to be physically present to open a company.
Attractive Tax System
Hong Kong has a very competitive tax regime, with no VAT, no income tax, no gross receipts, no wealth or consumption tax.
Income taxes are 0% for Offshore companies registered in Hong Kong. An income tax of 8.25% is applied on the first HKD 2,000,000 (USD256,000) and a rate of 16.5% is applied when that amount is exceeded (Not annually; but only once from the inception of the company)
Business Privacy
Hong Kong companies will be required to provide information to regulatory authorities about any person who is a significant controller of Hong Kong companies, but this information is not in the public record.
Free trade
Hong Kong is a free port, meaning there are no import or export tariffs.
Hong Kong is also unique in its trade agreements with both mainland China and the rest of the world. There is a free trade area between Hong Kong and mainland China (CEPA).
Trade with CHINA
Hong Kong's clear advantage is the ease of transactions with mainland Chinese companies: companies can pay in RMB and Hong Kong dollars. In addition, many Chinese companies also have a presence in Hong Kong, which makes transactions even easier.
Currency Freedom
Hong Kong has no foreign exchange controls, allowing payments to be made and received around the world without restrictions and in multiple currencies.
Hong Kong also facilitates the use of foreign currencies in a variety of official contexts.
High International Reputation
Hong Kong is one of the few truly global cities in the world, alongside cities like New York, London and Paris. International companies rely on Hong Kong-based companies as partners and customers, given Hong Kong's centuries-old reputation as a business hub. The same cannot be said for companies incorporated in countries such as Panama, Uruguay, Indonesia, the Philippines, Thailand and even the United States.
The same does not happen with companies incorporated in countries such as Panama, Uruguay, Indonesia, Seychelles, Cayman Islands, Virgin Islands, and even Delaware, USA. Which are synonymous with ghost companies and bad international reputation.
CONCLUSION
Because of its location, because it is part of China but free, because of its simple and beneficial tax corporate regime, Hong Kong is the right place to establish an International Trade company and develop business there with Asia.
