Company Formation Hong Kong
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Company Formation Comparison Hong Kong vs South Korea

Updated on Friday 30th December 2016

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Company-Formation-Comparison-Hong-Kong-vs-South-Korea.jpgHong Kong is an international business and financial center with a welcoming regime towards foreign investors. Both jurisdictions encourage foreign entrepreneurs, however, their level of openness towards expats and immigrants varies slightly, a difference that may be explained through their different cultural evolution: South Korea has maintained its homogenous cultural regime while Hong Kong has been influenced by its years under British rule, seen today in the fact that English is one of the two recognized languages.
 
Entrepreneurs who are looking to open a company that is located closely to China but at the same time has access to a more open trade regime can opt for company registration in Hong Kong.
 

Company formation in South Korea

 
Investors who are looking towards opening a business in Korea need to obtain a corporate investment visa. Companies incorporated in one of the specially designed investment zones benefit from several incentives, which may not be available to those corporations incorporated elsewhere in the country. All official documents are submitted and issued in Korean. 
 
Foreign local owned Korean corporations are subject to certain requirements and regulations that target the minimum amount of investment. The requirements for company formation in Hong Kong do not include a minimum amount of mandatory investment.
 

Company formation in Hong Kong

 
Company registration in Hong Kong is regulated and overseen by the Companies Registry. Investors need to submit the necessary documentation here and collect their Business Registration Certificate once it is issued.
 
Unlike in South Korea, there are no minimum amounts required for foreign investments in Hong Kong. The Companies Ordinance does not specifically impose a minimum share capital, however, certain amounts are necessary according to the type of legal entity. Foreign investments in Hong Kong are not restricted to specific zones and foreign entrepreneurs do not need a visa to be able to incorporate a company in the city. Company formation in Hong Kong is based on simple steps that can be accomplished rapidly in person or with the help of a representative.
 
Hong Kong has a low taxation regime: companies incorporated in the city are taxed at a rate of 16.5% and unincorporated companies are taxed at a rate of 15%. South Korea has progressively higher corporate tax rates above a certain taxable income amount. Both countries have double tax treaties in force.
 
If you want to open a Hong Kong company or you need detailed answers to your questions about investing in Asia, you can contact our experts.
 
 
 

Comments

  • Michael 2017-02-16

    I really liked reading this article.

  • Jonas 2017-02-17

    Interesting options, but I believe Hong Kong would be the better one, at least in some respects.

  • Hector 2017-02-21

    Great locations, with an attractive business culture! It would be hard to decide.

  • Diane Stevenson 2017-02-26

    This is an interesting comparison and a useful article!

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