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Company Formation Comparison Hong Kong vs. Vietnam
Updated on Thursday 21st December 2017 Rate this article
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Both Hong Kong and Vietnam are valid choices for foreign investors who want to set-up their business operations in Asia. While there are notable differences between the two jurisdictions, both welcome and support foreign investments and have concluded double tax treaties to facilitate bilateral trade and company formation.The Hong Kong company formation process is a very straightforward one and this is one reason why this jurisdiction is preferred by foreign investors. The types of companies that can be set-up in Hong Kong and Vietnam offer similar business solutions. Popular options for international corporations are the branch, the subsidiary and the representative office, although this business option offers significantly less commercial flexibility.
First-time investors in an Asian jurisdiction can request the services of a company formation agent in Hong Kong, Vietnam, Malaysia or another chosen country. Such services make it easier for the investor to complete the mandatory incorporation procedures.
Opening a company in Vietnam
Vietnam has seen a positive economic growth as a result of an increase in foreign direct investments. The most attractive industries in the country remain manufacturing and exports but businesspeople are also exploring other sectors. Full foreign ownership is permitted and investors can enjoy lower overall costs for renting or buying property in Vietnam.
Companies in Vietnam need to keep accounting records in Vietnamese. Compared to Hong Kong, where English is an official language, foreign investors in Vietnam might need assistance to draw-up the company documents and prepare all other accounts in Vietnamese. The corporate income tax in Vietnam is different from that applicable in Hong Kong and higher rates can apply in selected business sectors like oil and gas.
Opening a company in Hong Kong
Hong Kong is an international business and financial center and foreign investors find it very easy to open a company in Hong Kong. The process is accessible to anyone and most of the required registration procedures can be completed via an online portal.
Hong Kong companies must be registered with the Companies Registry and must have an office located at an address in the city. As little as four days can be required to open a Hong Kong company, compared to approximately two weeks for a company in Vietnam.
Hong Kong has a low taxation regime and has no withholding taxes on dividends, royalties, and interest. The city is also an attractive trust location in Asia.
Complete company formation assistance is available in English in Hong Kong. Foreign investors interested in knowing more about the requirements for setting up a company here can contact one of our company registration agents in Hong Kong.
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