Hong Kong has a very open economy and there are no restrictions on foreign investment or the transfer of income and capital in foreign currency. The main attraction for the founding of a company in Hong Kong is the establishment as a global trading and financial center and a gateway to markets in the Asia-Pacific region. Hong Kong’s infrastructure is specifically geared towards enabling free entrepreneurship to flourish with minimal bureaucracy and restrictions. The profits from commercial activities that do not take place in Hong Kong and not with customers in Hong Kong do not come within the scope of taxation, 16.5% tax on Hong Kong income only, 0% non-sales tax Hong Kong and no capital gains tax. In contrast to Singapore, Hong Kong does not regard the services provided by a Hong Kong company outside Hong Kong on the spot. When it comes to providing services at multiple locations, opening a company in Hong Kong is the clearest choice.
In view of its strong legal framework, Hong Kong is often chosen as a place where intellectual property is to be used in China and the Asia-Pacific region. There are 4 easy steps to start a business in Hong Kong. The customer completes the online form with all relevant details and performs payment of the service. We check the availability of the name and send all forms within hours. The client confirms the information in the forms. We send all documents and fees on your behalf to government agencies and take care of the entire process. Hong Kong Company can be incorporated within one day. We also have ready-to-use (shelf) companies that can be used immediately. Hong Kong has a very simple tax system with a tax of 16.5%. HK uses a territory-based control system, which means that only these HK gains are taxable. Gains from other countries are not taxed in Hong Kong. In addition, Hong Kong does not charge sales tax or goods and services.
A Hong Kong company does not require its shareholders or directors to be citizens of Hong Kong. Foreigners may be the shareholders or directors of the company. The installation fee and the annual maintenance costs are low. Hong Kong follows the legal system of customary law, which is a good legal system for the protection and enforcement of the legal rights and obligations arising from contracts and commercial transactions. Hong Kong adopts internationally recognized codes of conduct in industry and commerce. There is something in Hong Kong that does not lure foreigners from different parts of the world to start business in the city. But what makes Hong Kong really the ideal and attractive place to do business? Heritage Foundation and Wall Street Journal designated Hong Kong as the world’s most free economy. The decision to do business in Hong Kong has many decisive advantages. The low and simple tax system and its elite position enable companies from different industries to succeed in Hong Kong’s economy.
The Hong Kong tax system is based on the source and not on a residence concept. Unlike other countries such as the United States, Canada and China, which tax their taxpayers with the world income tax, Hong Kong has a simple tax system in which only income from Hong Kong is taxable. Offshore income is not taxed. Tax administration is very simple in Hong Kong. In Hong Kong there are only three types of direct taxes: income tax, income tax and property tax. In most developed countries there is no VAT, ie VAT or taxes on goods and services. The names of company officials appear in the public registration of Hong Kong after registration of a company. However, nominated officers can be used to prevent the name of the client from being displayed. A second important point is that the company must create accounts even though the accounts are not publicly available.