Company Formation in Hong Kong – A Brief Overview
Business people are always on the lookout for better options for setting up a business in Hong Kong. The economic development in China has created favourable conditions for foreign companies to open their operations here. Companies worldwide are looking at Hong Kong as one of the most viable options for setting up an office and developing a profitable business. But what are the benefits of company formation in Hong Kong? The following discussion briefly covers some of these benefits.
One of the benefits of setting up a business in HK is that you do not have to pay any form of income tax on your profits. You must pay corporate taxes at the end of the year. The tax amount depends on the tax rate in your country. Corporate tax in many countries also has got varying rates. So, it is best to do a bit of research on various countries’ taxation policies before you set up your business in Hong Kong.
You will also be able to save a lot of tax obligations by having a Limited Liability Company. Under such a system, your business is separated into different subsidiary units. All the dealings of your business are through the subsidiary units. The tax liabilities are, therefore, reduced to a large extent.
Another benefit of company formation in Hong Kong is that you can benefit from lower labour costs. When you set up a business in a foreign country, you must bear the costs of employees. You will have to pay for their training, and they also have to manage their working environment. But when you set up a business in Hong Kong, you won’t have to bear any of these expenses.
You will also have reduced costs in terms of purchasing the necessary equipment for your business. When you operate a business in another country, you must spend a lot on buying business equipment. Such expenses include purchasing office supplies, computers, and other software. With the help of a company formation in Hong Kong, you can get a low rate on such purchases.
You can also save a lot of money when it comes to taxes. You can avail of tax holidays when you register your company formation. These are free periods when you can save tax payments. Moreover, you can also save on estate and income taxes when you incorporate them. You can get exemption on import and export duties. Furthermore, you can enjoy low rates on banking fees, utility bills, and a lot more.
Besides, there are several other benefits of company formation in Hong Kong. Your company is considered fully accredited when it registers with the Monetary Authority of Hong Kong. The procedure to start your business also requires very minimal requirements. You can create your business within a few days. Moreover, you can quickly become self-employed after two years.
With all these advantages, why do you still hesitate? Try it now. You can even ask for some help from any of the local attorneys. You must pay some simple fees. That is it! It is effortless to get your own company established.
There are several other reasons why many business people prefer a company formation in Hong Kong. First, the laws in Hong Kong are comparatively less. You can also be given tax benefits if you elect to work with a foreign partner. Moreover, you have better protection against the local competition when you register your business with a professional company formation firm.
Before you fill out any forms, you should know what you are doing. Take the help of a company formation consultant in this regard. Do not try to do everything on your own. It can cause serious legal problems. Make sure you get the help of someone who knows what he is doing.
There are plenty of companies offering company formation in Hong Kong. Choose the best one according to your needs. Try to find out as much as you can about the company. It will help you get the best rates, and you will also save time.
setting up a business in HK