Hong Kong Company Registration - Its Advantages

Posted by goldmillennium on May 15th, 2013

Hong Kong is a popular global business city, especially as a hub of financial markets. After London and New York, Hong Kong is known as the third largest financial cities in the world. Here are top 5 advantages of Hong Kong company registration:

1. Social and Political Environment

Hong Kong holds remarkable rankings in global business surveys such as being an extremely efficient business centre and the 2nd most economically sound centre in the world. Apart from these, it has a stable economic and political environment with an independent legal system and a pro-business government. For these reasons, it is not surprising that Hong Kong is the most preferred business hub today!

2. Location

Hong Kong is located in proximity to China; it certainly plays an important role in grabbing the Mainland China market for a number of foreign investors. Hong Kong is just an hour’s drive from the world’s biggest manufacturing region, the Pearl River Delta, which manufactures 30% of China’s exports. Hong Kong and Mainland China are the biggest trading partner. Located in the centre of Asia, Hong Kong has some great links to international markets.

3. Infrastructure

Hong Kong is certainly one of the most advanced cities in the world. It is well equipped when it comes to infrastructure such as, telecommunication, transportation, utilities, and IT connectivity. It well combines the world-class international airport with exclusive logistics facilities such as shipping container port, and cargo airport, makes Hong Kong one of the most preferred business hubs.

4. Policy and Taxes

Companies incorporated in Hong Kong does benefit from its simple and low tax system. Companies registered in Hong Kong do not have to pay any sales tax/ VAT, dividend tax or withholding tax. However, it is sad that, in spite of providing such significant tax benefits, Hong Kong is not considered to be an international tax haven.

5. Company Registration Requirements

The Hong Kong company registration process is pretty simple.  It is a remarkable location for international businessmen to register their business. Besides benefitting from its location to the tax benefits and a booming China economy, Hong Kong has multi-cultural environment that is a positive point for international business and comfortable as a place to live.

About the Author:

Mr. Javier Hernandez, CEO is an international lawyer with a Master’s in European Union Law, International Business Transaction and Commercial Law and Chinese Law. Mr. Hernandez has eight years of experience in China and specializes in the business and legal areas in China including laws related to company formation & representative office in China. He has published and gained recognition in several magazines, including the Tsinghua Enterprise Business School magazine, as well as European and American magazines