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Company Formation Comparison Hong Kong vs India

Updated on Friday 30th December 2016

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Company-Formation-Comparison-Hong-Kong-vs-India.jpgHong Kong is a business center that is recognized for its good location in Asia, the ease of doing business and the quality of life. Its economy has always been competitive and its trade policies have guaranteed that the Special Administrative Region remains open to trade and to foreign investments.
 
India is a newly industrialized country with important potential for development and a large purchase power. While the country has been strengthening its services sector, however, foreign corporations and foreign investors are considering issues like economic disparities when deciding to set-up a business here.
 
Financial and service companies can look towards Hong Kong for a better market openness and a starting point for expanding to other Asian markets, including India. Investors who open a Hong Kong company have several advantages in the city.
 

Company incorporation in Hong Kong

 
Company formation in Hong Kong is very easy and a one-stop-shop system is in place for an easier company incorporation. Investors who have all of their documentation prepared only have to wait a few days before their Business Registration Certificate is issued. All of the constitutive documents are submitted to the Companies Registry. The main steps include:
- drafting the Articles of Association;
- choosing a valid company name;
- opening a bank account;
- submitting the forms and documents.
 
Hong Kong has a low taxation regime and unincorporated businesses are taxed at a lower value. Another significant difference between the business regimes in the two countries is the fact that Hong Kong has two official languages: English and Chinese. Foreign investors might find it easier to collaborate and maintain certain business relations. Also, the company name may be registered in English. Our team of company formation specialists in Hong Kong can help businessmen start their investment projects in the city-state.
 

Company incorporation in India

 
Compared to Hong Kong, foreign exchange control is stricter in India. While foreign investments are allowed in most sectors, they are capped in certain cases. Non-residents can invest using an investment entity that is incorporated outside the country. Various types of companies are available for incorporation in India.
 
Corporate taxation is larger in India compared to Hong Kong: 30% for domestic companies and 40% for branches of foreign companies and other foreign legal entities.
 
You can contact one of our company registration agents in Hong Kong for more details on the incorporation procedure and advantages offered to foreign investors.
 
 

Comments

  • Amir 2017-02-16

    Very interesting article!

  • Carl 2017-02-17

    Seems a good idea to open a manufacturing unit in India and have the main headquarters in Hong Kong. 

  • Fred 2017-02-21

    In my opinion, Hong Kong representes a better business market, but India also provides numerous business opportunities.

  • Angela 2017-02-26

    I have some investment plans and this comparison helped me a lot!

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