There are lots of opportunities to start a business in Hong Kong. There is enough exposure to all the individuals who desire to incorporate in Hong Kong. The excellent infrastructure, tax-friendly regulations, the latest software, and technology, incorporating services by reliable corporate service providers, and digital marketing have allured entrepreneurs in Hong Kong to start a business firm.
Here are the top reasons that attract entrepreneurs in Hong Kong to start a business:
The Wall Street Journal and Heritage Foundation have generated the report of economic freedom that states Hong Kong, the first country to provide a liberal system in the economy. The country provides schemes and investment for foreigners and excludes all the barriers to operate trade and business to run foreign businesses. It also offers free trade policy to entrepreneurs.
Simple Tax System
The Hong Kong government charges very low taxes as compared to other countries in the world. The tax charges are one of the major reasons for attractions for the business person to start a business in Hong Kong. The Hong Kong administration treats both locals and foreigners equally on tax charges. The tax amount is restricted to approximately 16.5%.
Another fascinating reason that attracts the investors in Hong Kong is that the taxes are not levied on the business activities and trades that are carried out of the country. You are obliged to pay taxes only on those corporate activities that are performed inside the country.
Likewise, the taxes on capital gains, sales tax, withholding tax, VAT, dividend tax, and estate taxes are not charged by the Hong Kong government. The salary tax of an individual is levied only on the income generated from the companies located in Hong Kong. The maximum rate of salary tax is 15%, and these taxes can be paid in two instalments or as a whole.
The basic infrastructure is a prerequisite to run the business smoothly. Hong Kong offers world-class infrastructure, the latest software, and technology to ease your business operation. Communication is necessary for daily business activities, and the country offers cost-effective telecommunication which reduces the costs of communication.
The country has the 5th busiest international airport in the globe and has more than 85 airlines. It has amazing telecom services, transportation, travelling, logistics, and cargo-forwarding services. The trains, commutes, and taxis for public transportations are also cheap and affordable.
Easy Business Registration Process
There are no complicated processes and guidelines to set up a business in Hong Kong. And who else is not attracted to start a hassle-free business? The government is fully supportive of small and medium-sized enterprises. There are corporate services providers who help you with all the stuff and processes to set up and flourish your business.
3E Accounting Hong Kong is an accounting firm in Hong Kong that provides you with secretarial services in Hong Kong to comply with the companies’ act and guide you with every step to set up your business.
Rules & Regulations In Hong Kong
The legal system in Hong Kong is fair and straightforward. It provides transparency to the business that allows smooth operation of the business activities. The policies are also free from corruption. The Hong Kong government provides various loans, funds, schemes to support growing enterprises and foreign entrepreneurs.