Hong Kong — A Stepping Stone to China
If you operate a company that is looking to break into the Chinese market, then Hong Kong makes a great choice of location to incorporate a new business from which to target China. By using a Hong Kong company registration service, you can quickly and easily set up a company in Hong Kong, as well as procure a Hong Kong corporate bank account. Below you will find some comprehensive information on just why Hong Kong is the perfect stepping stone to China.
Why Set Up a Company in Hong Kong?
There are a number of excellent reasons why Hong Kong company formation makes good sense as a jurisdiction to set up a company that is targeting China. Hong Kong is the most popular city in Asia for companies that operate internationally, and here is why:
· There are no foreign ownership restrictions for company formation in Hong Kong — you do not need to have local shareholders, and there is no limit on the percentage of shares that can be owned by a foreigner.
· Under the free trade agreement doing business with China is simple — this means that China is one of the prime trading partners with Hong Kong.
· Zero tax to China — for the foreseeable future, Hong Kong companies will be able to export goods to China with no import or export tax.
· The tax situation in Hong Kong is very simple — this makes accounting very easy, and budgeting for tax payments very simple.
· Zero tax on overseas income — if you do not make revenue in Hong Kong, then you don’t pay tax on it. This means that for international companies, Hong Kong is a great place to open an offshore company.
· Rock solid legal system — no complicated laws, or unfair legal requirements for foreigners. Just a robust, honest and well managed legal system.
· No capital lock-in — unlike many countries, when you incorporate a company in Hong Kong you are free to move money both in and out of the country without restriction.
· A simple company registration process — once you are listed on the Hong Kong company registry you can conduct business at once.
· A wide range of banking choices — with HSBC and DBS among many others offering a sophisticated range of corporate banking services.
Hong Kong is a Perfect Location to do Business in Asia
The benefits of a Hong Kong company incorporation outlined above are applicable to both international enterprises looking to form an offshore company and local business who wish to trade in Hong Kong. Now let’s take a look at some of the benefits of Hong Kong from a physical perspective, and just why it is the perfect gateway to not just China, but the whole of Asia.
· Hong Kong is located within just a few hours’ short plane flight from Asia in its entirety — as a location to do business from in Asia, few other cities can compare.
· The city is already an internationally renowned centre for business — it has a well-established commercial environment and a business community to equal commercial centres such as New York and London.
· The majority of commercial air freight and shipping comes through Hong Kong — making it the best location in Asia for import/export style businesses.
· Easy access to China — the massive Chinese market is just a single land border away.
Local Hong Kong Companies have Access to a Skilled Workforce
For companies that are incorporated in Hong Kong, and operate a local regional office or other premises of work, it is important to understand the benefits of employing a local workforce. Hong Kong is gifted by a skilled, well-educated local population, and delivers benefits such as:
· English is widely spoken — but the workforce is multilingual, with many speaking the Mandarin Chinese used within China.
· A flexible, professional workforce — unlike many other Asian countries, the Hong Kong workforce is hardworking, with an excellent work ethic. Educational standards are very high, and people are motivated in their work.
· Well-traveled and world-wise workforce — compared to other Asian cultures, the people of Hong Kong tend to travel more and learn more about the wider world. This results in more life-experience which can have a positive benefit on their work.
· Western style business standards — a positive bonus for businesses in markets such as finance and healthcare, where legal compliance is a big issue.
· Virtual Office service providers mean that you can establish an address and telephone presence overnight.
Living in Hong Kong as a Business Owner
Using a Hong Kong company service to incorporate a business, and also set up a Hong Kong corporate or business bank account is a good place to start if you are outside Hong Kong. But what happens once your company is set up and you want to live or stay in Hong Kong? What is life like? Hong Kong is a fantastic city with the following benefits:
· A large, active expat community — making it a very easy city to move to and make new friends.
· A wide range of housing options — from studio apartments in the city centre to large houses in the suburbs.
· Plenty of excellent schooling — there are many International schools for children of all ages to be found in Hong Kong.
· Excellent entertainment — from vibrant nightlife, internationally acclaimed restaurants and trendy bars, to a massive range of sporting options, Hong Kong has it all.
Hong Kong as a Jump Point to China
As we can see from the many reasons listed above, Hong Kong is a perfect gateway to China. From a commercial viewpoint, the comprehensive trade agreement in place between China and Hong Kong mean that lower import/export taxes will mean more profit.
From a logistics point of view, Hong Kong has the infrastructure needed to sustain a reliable commercial environment that is just a short overland journey from the closest border to China.
And finally, as a place to live and work, Hong Kong has much to offer. Setting up a company in Hong Kong means gaining access to an excellent local workforce. If you intend to run your business locally, you will benefit from living in one of the most cosmopolitan cities in the world, that offers a lifestyle that easily equals that of large western cities.
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