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Top 10 Reasons To Start A Business In Hong Kong
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Today, Hong Kong is regarded as a top choice by entrepreneurs for setting up their business. Hong Kong annually lures a large amount of new businesses and investors, making it one of the leading economies of the world.
But why is Hong Kong such an attractive place for business start ups? Furthermore, what makes it such an ideal place for business?
As said by Charles d’Haussy, the Head of Fintech at InvestHK, Hong Kong is one of the international financial centers with freest economy, large talent pool and strong heritage of trade and work ethics.
The country is distinguished as a global business hub offering advanced technology infrastructure and exceptionally favorable tax regime. Apart from this, the Hong Kong government also supports the startup community as they launched a HK$2 billion (US$ 256 million) fund for new comers in the market.
Tabulated below are some major benefits of starting your business in Hong Kong which will answer all your questions about Hong Kong’s facilities and opportunities:
1. Hong Kong’s government allows and encourages foreigners to do business.
The very first reason to consider while choosing your business destination is to look at the government's policies. In Hong Kong, as a foreigner you can own and operate your business solely. “INVESTHK” is a separate department established by the government to assist foreigners with free investment promotion. Setting up a company in Hong Kong won't take long as there are a number of facilities at your disposal.
Continue reading the blog to explore all the facilities you need to know about before starting your business in Hong Kong.
2. Hong Kong offers a very favorable Taxation Policy:
Hong Kong offers a very business- friendly tax system. By eliminating VAT, sales, capital gains or dividend-based taxes, the government of Hong Kong makes the country a fertile land for new businesses. With tax rates like, 16.5% profit tax, 15% salaries tax and 15% property tax, the government ensures ease for the upcoming businessmen. Apart from this, Hong Kong also follows the zero corporate tax policy making tax payable only for business activities within the country.
Furthermore, Hong Kong has found its place at the top in the Economic Freedom of the World report.
3. Setting up a company in Hong Kong is an easy task:
After settling on a name for your company, all you have to do is submit an online application to the Hong Kong Companies Registry. The applications are reviewed within a day and successful applicants are issued an incorporation certificate.
Unlike other countries, China makes sure that their foreign entrepreneurs are at ease by making the process easy and widely available.
4. Hong Kong’s fecund land for Cryptocurrencies offers great opportunities to start-ups:
Hong Kong is well known for being a global and regional cryptocurrency hub. Moreover, Hong Kong has the highest rate of FinTech use at 29.1%. According to MEDICI, Hong Kong fintech has raised over $310 million in funding.
Budding link crypto exchange in Hong Kong acts in favour of start-up in many ways. With crypto, you can raise capital for your business and advance in the market. Furthermore, cryptocurrency provides a path open to anyone to invest in the world's most exciting technology. This decentralized blockchain investment promises high returns in the future.
5.Top economy, Hong Kong has high freedom:
One of the major reasons to choose Hong Kong for your business is that the country provides the freest economy. A recent study reveals that Hong Kong grabbed the first position both regionally and internationally in economic freedom with a high score of 88.6. Hong Kong’s open markets, judicious economic policies, and crystal-clear legal environment make it an open and growing land for entrepreneurs.
6. Hong Kong’s locations make Asian markets highly accessible:
Hong Kong’s central location is an exemplary place for new and growing businesses. Hong Kong is located in the heart of Asia, giving it easy commercial and geographical access to mainland China and all other Asian markets.
Your start-up in Hong Kong can easily be projected and publicised to the entire world which will give it a rapidly growing pace.
7. You can reduce your taxes with Hong Kong’s Write-Off policy:
You can save an appreciable amount of money under Hong Kong’s beneficial write-off policy. Hong Kong’s lenient write-off policies allow you to save money on your rail, bus and automobile rides made for business purposes. Under the policy, your meals and entertainment costs can be deductible up to 50%. Moreover, the expenses for seminars, year-end parties, etc are up to 100% deductible.
Hence, Hong Kong comes out to be a dreamland for new business owners.
8. It is easier to sell corporate shares in Hong Kong:
Unlike most countries, Hong Kong’s government makes it easier for business owners to sell their corporate shares. This opens numerous possibilities for budding entrepreneurs to take their businesses a step further. One can pay off their business debts, invest in new areas like cryptocurrency and make their contribution to society.
9. Huge diversification in banking options:
In Hong Kong, you can choose from a wide variety of facilities available in the banking sector. The HKMA Register of Authorized Institutions and Local Representative Office state that there are 190 accredited financial institutions along with a large number of banks. Apart from this, around 50 foreign banks have their local representatives in Hong Kong.
This opens a wide number of facilities to be availed for entrepreneurs. This huge network of banking facilities play an important role in making your business run smoothly in Hong Kong.
10. Excellent living standards and Health Facilities:
The last but not the least reason to set-up a business in Hong Kong is the dynamic and cosmopolitan lifestyle the place offers. The place is well equipped with availability of residence and around 180 hospitals spread to every corner. Hong Kong also offers an option of lifetime insurance, which keeps you covered in all the ways possible.
Undoubtedly, these distinguished qualities and facilities of Hong Kong’s market attracts a large number of investors and entrepreneurs to the land. Lenient tax policies, high freedom and exceptional living standards, all contribute in making Hong Kong a fertile land for start-ups. Apart from this Hong Kong’s cryptocurrency regulation allows you to safely increase your income.
Hong Kong, a blend of cultures and ethnicities is a beautiful place to live yet, it is equally thriving for new businesses.
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