Establishing a business in Hong Kong is no longer that difficult. Previously, Hong Kong was just known as the ‘English Port’ of China; today, it has turned into a global business hub. Now, even international companies are flocking to Hong Kong for setting up their business operations. The following are the top five benefits of company formation in Hong Kong.
First and foremost, you get to reap the benefits of establishing a business in Hong Kong is one of the most populated places in the world. Millions of people from different countries come to Hong Kong every year. If your business is well established and gets sufficient footfalls every day, your company will benefit immensely. There will be no place for you and your business to go unnoticed!
Secondly, getting a permanent address is a significant advantage. As you know, when a company decides to establish its own office, then it needs a permanent space. If you are running a business from a rented or temporary space, your company will have difficulty competing with other companies in the same industry. Therefore, having a permanent address in Hong Kong makes a huge difference.
Another benefit of company formation in Hong Kong is that your business will not have to be supervised by any local or government laws and regulations. If there are any, they will be applied to the company headquarters only. Therefore, you will be able to conduct your business hassle-free and with little or no cost to yourself or your employees.
A third benefit is that you will be able to save a lot of money in terms of starting and running your business. Setting up a business requires a lot of funds. Whether it is for wages, purchasing equipment, renting office space, paying salaries to employees, and so on. Besides, suppose you want to open a high-profile business like a bank, hotel, or shopping mall. In that case, you will have to pay a considerable sum to a local government agency or an overseas government agency. Opening a business in Hong Kong does not require you to pay anything at all.
You can also enjoy tax benefits, which most people do not realize. When you open a Hong Kong company, you must pay tax to the tax authorities of your company’s location. You also must pay administrative fees and tax to local authorities. Besides, the local customs and surcharges apply to your company as well. So, by establishing a Hong Kong company, you will enjoy all these benefits without paying any amount to anyone.
A fourth benefit is that you can get a suitable business license in Hong Kong. The first requirement for starting a new business in Hong Kong is that you must get a business license from the government of the place where you are establishing your company. Besides getting a business license, you also need to submit business proposals to the SARDF or the State Administration of Business, Development, and Regulation. These documents are required to assess your business and to submit suitable applications to the government. So, having a company formation in Hong Kong is undoubtedly a great advantage.
Thus, establishing a business in Hong Kong is not a difficult task. However, there are still some things that you must consider. You should be aware of the benefits and drawbacks of a particular business before you start it. You should never rush into things and should always research and study well before you start any business.