Hong Kong is a business paradise, a unique destination that entrepreneurs and investors can trust to grow their enterprises rapidly. It is a special administrative region (SAR) of China but enjoys a great deal of autonomy, which its administration uses to run a pro-business economy. To take advantage of this high-potential market, the first step is to register a business in Hong Kong. 

This post is a closer look at the benefits that come from registering a business in Hong Kong and the main steps to follow.

Important Facts about Hong Kong 

  • The Hong Kong GDP is USD 368 billion (2021 estimates). 
  • The population of Hong Kong is 7.40 million (2021 estimates). 
  • Hong Kong is among the most service-oriented economies on the globe. 
  • UNCTAD World Investment Report shows that the FDI inflow to Hong Kong was USD140.7 billion (2021 estimates). 
  • Hong Kong is an important financial and banking hub in the entire Asia-Pacific. Globally, Hong Kong is the third leading financial center.

Benefits to Expect When You Register a Business in Hong Kong 

The most notable advantage of incorporating a business in Hong Kong is the support provided by the jurisdiction’s administration. After regaining its sovereignty back in 1997, Hong Kong’s government has passed laws and policies aimed at helping businesses blossom.

Because of the level playing field for all businesses, you only need a strong product and good strategies for success. 

Here are other benefits to expect when you register a business in Hong Kong

  • Strategic Location 

Because of its strategic location in the heart of the Far East, Hong Kong is an excellent jurisdiction for companies that target reaching out to neighboring markets. If you want to tap into the large Chinese market of more than 1.4 billion, it will be pretty straightforward because of proximity and via the Closer Economic Partnership Arrangement (CEPA). Other markets within reach include Japan, India, Australia, and South Korea.

  • Hong Kong Boasts of Highly Developed Infrastructure 

One of the attributes that you will realize when you decide to register a business in Hong Kong is its highly developed infrastructure. From its transport to the internet network, you are sure of a reliable system to support your business operations.

Let’s highlight one example, the Hong Kong International Airport (HKIA). 

HKIA is ranked the eighth busiest passenger airport on the globe. It works with about 120 airlines and connects approximately 220 destinations globally. Cross-boundary ferries further make sea transport easy and fast. This makes moving staff, raw materials and finished products to or from Hong Kong convenient and affordable. 

  • A Low and Straightforward Tax Regime 

When looking for a place to locate a business, most entrepreneurs are interested in the ability to retain the bulk of the generated profits. Hong Kong stands out among its peers because it has low taxes, and its system is pretty straightforward. The jurisdiction follows a two-tiered tax model that is aimed at helping new and smaller companies retain profits for faster growth. 

Under the two-tiered system, companies are charged 8.25% in corporate taxes for the first HK$2 million. Then, anything above HK$2 million is charged the standard corporate tax rate of 16.5%.

Also, Hong Kong does not impose withholding tax on interests, dividends, and rents. 

Other benefits you should anticipate for opening a business in Hong Kong include a large pool of educated workforce and rapid expansion to the global market through bilateral trade agreements. Even with the long list of benefits, we must say that many are those who find company registration a challenging task because of the logistics involved. The better method to register a business in Hong Kong is using an agency of experts. Contact MBiA, one of the best agencies for company registration in Hong Kong, for assistance.