Company Formation Comparison Hong Kong vs Taiwan

Updated on Monday 13th March 2017

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Foreign investors who are considering accessing the Chinese market or expanding their current business here can look towards opening a company in Hong Kong or Taiwan. Both of these locations have the advantage of being closely located to the Mainland, however, when choosing the best jurisdiction to do business investors need to look beyond the advantage given by the geographical location.

Hong Kong and Taiwan have different particularities related to business taxation, registration, and reporting. A local team of experts can facilitate company registration in Hong Kong or in another location in the Asia-Pacific region.

Company formation and business particularities in Taiwan

Taiwan and Hong Kong both have various types of companies available for incorporation. In Taiwan, these include the unlimited or the limited company, the hybrid unlimited company, the company limited by shares, the branch, and the representative office.

Taiwan imposes no withholding tax on dividend payments made to resident shareholders but does have a 20% withholding tax for dividend payments to non-resident companies. The corporate income tax is 17% to which a surtax applies to undistributed profits.

Company formation and business particularities in Hong Kong

Foreign investors in Hong Kong can choose to open a company that has the size and liability characteristics needed for their business. The private limited liability company is a commonly employed option while foreign corporations also have the option to open a branch in Hong Kong.

Hong Kong has a low taxation regime: compared to Taiwan, the corporate income tax is 16.5% and there is a lower tax for unincorporated businesses. Hong Kong does not impose withholding taxes on dividends and has signed numerous double tax treaties to avoid the double taxation on profits for companies deriving income both from Hong Kong and a secondary jurisdiction.

Foreign investors will find it easy to communicate in Hong Kong. The city has two official languages: Chinese and English. You can find out more about the Hong Kong business culture from our experts.

One of our company registration agents can answer all of your questions concerning company formation in Hong Kong and can help you throughout the process. Contact us for more information and a detailed description of our services.

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Company Formation Hong Kong

Company Formation Comparison Hong Kong vs Taiwan

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