The profits tax exemption available to offshore venture capital funds included in the Innovation and Technology Venture Fund in Hong Kong will continue to apply, according to a draft law proposed by the Government. There has been some concern over the fact that venture funds involved in this project would lose their exempted status. In turn, this would have discouraged investors who would have wanted to open a Hong Kong company in the innovation and technology field.
The Hong Kone Government has released the draft of a bill which is meant to encourage companies to engage in research and development activities in Hong Kong. Investors who open a Hong Kong company already have a set of advantages regarding taxation and selected business activities, however, this bill would reshape the manner in which the basic tax deductions are offered for research and development activities.
Hong Kong officials are considering changing the current restrictions on the stamp duty refund. The changes to the laws in force would allow for an increase of the period of time during which taxpayers in the city could apply for this type of refund. One of our Hong Kong company formation experts can give you more details on these possible changes.
Hong Kong’s economy continued to grow for the fourth consecutive quarter. The city recorded an economic increase of more than 3 percent during the third quarter of 2017. According to the Third Quarter Economic Report 2017, external demand had a significant role to play in the overall positive economic evolution. Moreover, company registration in Hong Kong is straightforward and accessible to foreign investors, another factor in the city’s attractiveness.
Hong Kong officials have planned further corporate income tax cuts for small companies in the city. Chief Executive Carrie Lam recently stated that she plans to introduce an even greater degree of relief for these types of companies, more significant than the one initially described in her pre-election public declaration. The aim is to reduce the tax burden on small companies and to encourage corporate innovation.
Hong Kong was ranked the sixth most competitive city in the world, according to JLL and The Business of Cities group. The Special Administrative Region is known for its low tax regime and favorable business climate, however, according to the data released by the two companies, it also scores well in categories like smart cities and real estate indices. Investors interested in company formation in Hong Kong have various opportunities in the city, mainly because of is close relation and position to Mainland China.
Hong Kong recorded another increase in total exported goods in July. The total value of exports grew then by 5.7% on a year-on-year basis. The data was recently released by the Census and Statistics Department. Import and export companies benefit from a low taxation regime in Hong Kong and other advantages because of the city’s positive policies for this type of activity. Our company formation agents in Hong Kong can give you more information if you want to start a company in this field.
Our company registration experts in Hong Kong launched a new tool suited to the needs of investors who wish to open a Hong Kong company but cannot be present in the city during the incorporation phase. With our new tool, you can quickly go through the preliminary steps for company formation and then use our services for document submission and registration with the Companies Registry.
Hong Kong and Saudi Arabia have concluded a double tax agreement for the avoidance of taxation on income from both jurisdictions. The treaty defines the taxation rights each of the two jurisdictions has in respect to income derived by companies operating in both places. One of our Hong Kong company formation agents is able to provide you with comprehensive information on the treaty conditions and how they apply to foreign investors in Hong Kong from Saudi Arabia.
More than half of the total amount of foreign direct investment received by Hog Kong in the first half of 2017 comes from Chinese sources, according to CBRE. Most investment directions included sovereign wealth funds and real estate investments. Foreign investors in Hong Kong from China benefit from an attractive tax regime and an easy procedure for company formation in Hong Kong.
Innovative companies in Hong Kong have a new set of benefits in store for them, starting with October. Hong Kong’s Chief Executive will announce them in her Policy Address in October. The innovation and technology sector in Hong Kong (I&T ) will also benefit from a new, dedicated venture fund. Our company formation agents in Hong Kong can provide complete information about this business sector and the existing benefits for companies.
A new tax policy unit within the Government will consider the implementation of a new set of tax breaks for small companies in Hong Kong. New Chief Executive, Carrie Lam, first introduced the proposal. Our company formation agents in Hong Kong can give you more details on these proposed tax breaks and whether or not the system will apply to your business.
Hong Kong has seen a rise in the total number of registered companies. At the end of June, there were more than 30,000 newly registered companies, compared to the end of 2016. This year, more than 80,000 companies were registered in the first six months, out of which approximately 20,000 were incorporated via the online platform. Company registration in Hong Kong is straightforward, especially if all the documents are in order and prepared beforehand.
China and Hong Kong maintain a very close business relation, despite the differences between their business regimes and the fact that the Mainland is opening up to the world more in recent years. Hong Kong is an important business hub in Asia and many foreign investors open a Hong Kong company to use it as a springboard for their business activities and investments in the Mainland.
Hong Kong and Australia have signed an agreement to allow for a better cooperation and support for financial innovation between the two jurisdictions. This new agreement tightens the existing relations built between Hong Kong and Australia, including their trade and investment relationship. Foreign investors from Australia who want to open a Hong Kong company can further benefit once the fintech agreement enters into force.
The volume of exported goods in Hong Kong grew by 15% in March, compared to the same month last year. The total quantity of imported goods also rose according to the Census and Statistics Department. Many of the entrepreneurs who are interested in company formation in Hong Kong choose a business field that is connected to trade or that produces exportable goods.
Hong Kong officials plan on revising the city’s industrial estate policy in order to endorse re-industrialization. The purpose is also to attract new investments in value-added technology industries and to increase the manufacturing processes. Investors in business sectors that qualify as technologically innovative could benefit from these measures if they intend to open a Hong Kong company.
Hong Kong’s gross domestic product increased by 4.3% during the first quarter of 2017 shows the date released by Hang Seng Bank. The growth is part due to an increase in consumer spending and part due to more property investments. Based on this data, the growth of the investment sentiment in the city could make room for more company formation in Hong Kong as consumer spending and demand continues its positive evolution.
The Hong Kong Government entered a new negotiation phase for a free trade agreement with Australia. The two jurisdictions have been negotiating the areas that should be covered by such a treaty and plan on starting the negotiations. Some of the most important changes, ones that could determine Australian investors to open a Hong Kong company, would include some tax changes and eliminations.
The initial prediction for Hong Kong’s GDP rate increase in 2017 was lower than the one predicted in the latest forecast. A 2.4% increase is expected, compared to only 1.8% as initially predicted. This positive evolution is due, in part, to Mainland China’s recovery. Investors who are interested in Hong Kong company formation can use the predictions released until this point for several industries, including tourism and services.