Hong Kong: LTD
Why is it beneficial for a company to incorporate in Hong Kong?
Hong Kong is thought of as one of the best cities to ground and operate a business from, as it offers a lot of factors that are vital to business; a productive workforce, a stable political and economic environment, a strategic location, an attractive tax regime, world-class infrastructure and finally an appealing legal system. All these factors combined help make Hong Kong into the successful and powerful city it has become, we will go into further detail and analyse these factors.
Strategic Location: Due to Hong Kong’s location being in the heart of Asia, it is incredibly easy to travel to any major Asian city, making it easy to penetrate all Asian markets with ease. The Hong International Airport is the 5th busiest in the world, with airlines reaching over 180 destinations. Hong Kong is also considered a major port of the world, being responsible for a large part of maritime activities such as tonnage of shipping, handling cargo and passengers carried.
Ease of doing business: Hong Kong is ranked 5th best country to do business in, as it is possible to start a new company in under 2 weeks’ time, the infrastructure of the city is legendary and business locations and offices are easy to come by. Hong Kong is ranked 3rd having the best business environment and being the 2nd best nation for foreign trade and investments, foreigners can find it very easy to relocate their business after applying for the necessary work visa.
Hong Kong has contributed to GDP growth at about 5%, this is due to it’s limitless inward and outward investments, the fact that they have no foreign exchange controls nor ownership restrictions. Even though Hong Kong is ranked the worlds freest economy, it is also ranked the 2nd most competitive economy.
Tax Regime: Hong Kong offers the lowest tax regime in the entire world, ranging from 2% to 17%. Corporate tax is currently at 16.5% and incorporated tax is at a steady 15%. Sales Tax is also non-existent in this city.
And for profits derived from outside Hong Kong, the tax is 0%!