Why is Hong Kong Attractive for Foreign Investors?
Updated on Thursday 16th January 2020
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Hong Kong: the gateway to Asia
Hong Kong is the best business choice for entrepreneurs who want to have access to the Asian market and Mainland China. Hong Kong is a very dynamic city and an increasingly important business hub and economic center that has expanded formidably in recent years. Hong Kong is an internationally renowned business location and is evolving towards competing with other important cities, like London or New York.
Business owners have many opportunities to start a business here and they can choose to invest in a number of profitable business areas. Our company formation agents in Hong Kong can offer you guidance and advice for investing in Hong Kong.
We invite you to watch a video showing the most important advantages for foreign investors in Hong Kong:
A tax friendly economy
Hong Kong has been rated as one of the most tax-friendly economies in the world in 2014. This is very true, since the city only has three main direct taxes. The property tax and the salaries tax are set at 15 percent and the profits tax is set at 16.5 percent. Hong Kong has no sales tax, no withholding tax, capital gains tax or dividends tax.
In order to improve its trading relationships and offer international companies an even more advantageous taxation regime, Hong Kong has signed approximately 30 double taxation agreements and many more agreements are currently pending. Foreign branches and subsidiaries in Hong Kong can benefit from these agreements concluded in order to avoid double taxation.
Another important reason why investors choose to open a company in Hong Kong is because the government supports new businesses and new companies in Hong Kong. There are a number of programmes that help small and medium sized enterprises set up and begin their economic activities in the city. Some examples include incubator programmes, loan guarantees and funds for marketing.
Our company formation specialists in Hong Kong can give you more details about the programmes and funding schemes. They can also help you in case you are considering buying a Hong Kong shelf company.
A city designed for business
Hong Kong not only has a tax friendly economy but it is also a city that welcomes foreign businesses. The city has free market policies, enjoys political stability and encourages an international business environment.
Because trade is very important for Hong Kong, the city has always encouraged a free market and a free trade policy. There are virtually no barriers to trade: no tariffs, quotas or exceptions there are no restrictions on inward and outward investments and no foreign exchange controls. Also, foreign investors have no restrictions regarding nationality when it comes to corporate ownership.
Hong Kong’s policies, work ethics and lifestyle attract business owners and employees alike. The vibrant city is a strategic location in Asia that offers world-class solutions for business. If you want to open a company in Hong Kong, our experts can help you get started.
Call us now at+852 30022208 to set up an appointment with our company formation experts in Hong Kong. As our client, you will benefit from the joint expertise of local lawyers and consultants for opening an offshore company in Hong Kong.
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