Why set up your company in Hong Kong?
It is quite profitable to hear or develop your business in other continents, but you must also choose the right country according to your activities. Many people are unaware of the advantage that this represents for a company. For example, when you want to expand your business in Asia, Hong Kong is the perfect place for such a project. In this article, you will be given the advantages of this choice.
The geographical location of this country is strategic, which makes it the perfect jurisdiction for any business-oriented activity. It is the perfect place to create an important link with customers. Their airport is among the best in the world because it has more than one hundred companies with more than one hundred and eighty destinations. It is also followed by 1,000 flights every day. Note that the main city in the southeast is at most five hours away by plane. The time difference between the business centers in the Pacific region and Hong Kong is no more than two hours. Therefore, despite the time difference, you can communicate with them in real time. Some of the business centers include Beijing, toyiyo, Singapore, etc.
The proximity of the two countries gives you free access to expand business there as well. With the boom in China in recent years, it is definitely the perfect springboard for investment. When your company is in Hong Kong, it would be easier for you to gather information and also support. You will also have the expertise to enter the Chinese market. Between the two countries, i.e. China and Hong Kong, cross-border trade is easy and accessible. They are also encouraged by the regulatory framework. We are talking about the double taxation avoidance agreement, which shares the taxation rights between the two jurisdictions. There is also the economically enhanced partnership agreement designed to help Hong Kong companies to access the Chinese market.
The country's taxation is very light. According to the territorial taxation system, the taxes of all those who reside in Hong Kong are calculated on their source income. The principle is the same whether you are an individual or a corporation. As for their foreign source income, they are exempted because they are generated outside Hong Kong. In other words, you are liable for a tax based on the profits generated here, i.e. locally. There is no tax levied on interest, dividends, capital gains or VAT, which saves money as well.
The rule of law
The country's legal system is based on the independence of the judiciary and the rule of law. This information means that everyone before the law is equal in Hong Kong. This also gives access to the judicial system to all. Under the existing laws and principles that existed before the handover in the 1990s, the rules of ordinance, fairness and equity are still applicable. Remember that Hong Kong's legal system is different from China's. Its maturity and stability are key factors for foreign investors, i.e. the international community. You also have an opportunity to engage in technology and innovation.
Here are the reasons why you can create your business company in Hong Kong to increase your income.