Hong Kong prides in fame as a worldwide business city that focuses on financial markets. Following London and New York, HK ranks as the third principal fiscal hub globally. This ranking can improve following the escalation of Standard & Poor’s valuation for HK to the peak AAA level ranking. According to IMF 2010/ Current prices, Hong Kong’s per capita income stands at an average of US$32, 000. These statistics correspond to those of the European Union and they exceed the performance of other many larger states. The impacts of its financial domain on financial crises justify the popularity and highly valued authority of Hong Kong as stated below:
- Socio-political environment
Worldwide business surveys impressively rank Hong Kong. Following IMD World Competitiveness Yearbook, Hong Kong holds the 2nd and 1st positions of the world’s most economically and business efficient nations respectively. The Transparency Corruption Perceptions Index 2010 on the other hand placed it at the 13th position of the least corrupt nations globally. Its independent legal framework and pro-business government support the stability of its political and economic domains. No wonder it continues gaining popularity for Asia’s regional operations. In fact, it houses 1252 and 2328 regional headquarters and offices as per Hong Kong SAR Government’s Census & Statistics Department.
Hong Kong’s proximity to China enables it to access Mainland China Market that aids in reaching out to many alien entrepreneurs. Interestingly, it is only an hour’s drive from the Pearl River Delta. This delta is the world’s biggest manufacturing area yielding 30% of China’s exports. Then, Hong Kong majorly makes inward investments to China’s Mainland that forms HK’s largest trade partner. Its high ranking in financial capital serves as an attraction to Chinese firms in both Secondary and Primary listings for accessing Asia markets. The Hong Kong Stock Exchange (HKSE) ranked second to Tokyo Stock Exchange (TSE) as Asia’s biggest stock exchange based on market capitalization in 2010. HKSE outdid Shanghai Stock Exchange mainly because most Chinese firms consider HK as an ideal avenue for business expansion in Asia. Its location in the heart of Asia also makes it efficient for linking international markets. In fact, it takes five flight hours to move from HK airport to core trading jurisdictions in Asia.
Another benefit of Hong Kong Company Incorporation is that it displays one of the World’s most current cities. It prides in hi-tech infrastructure that merges first-class international airport with effective linkage facilities like Shipping Container Port and Cargo Airport. This makes it an attractive pool for companies that depend on proficient transportation of their products and staff around different parts of the world.
- Taxes & Policy
A company that settles on incorporating itself in Hong Kong enjoys its simple tax system that levies low taxes. For example, corporate entities pay a maximum tax or 16.5% while personal income taxes peak at 15%. In fact, its citizens celebrate these taxes and thus appear third worldwide in Forbes’s list of Tax Misery Index. Additionally, registering your business in Hong Kong guarantees that you will pay neither VAT nor sales taxes. You will also enjoy freedom from gains taxes, dividends tax and withholding taxes. Strangely, these tax benefits do not place Hong Kong in the world’s leading tax havens.
- Company Registration Requirements
It is significantly easy to register your Hong Kong Company Incorporation when compared to many other nations in Asia. You will however provide crucial documents before forming your company. For instance, you require your firm’s name and its corporate structure. In addition, you have to meet the fundamental requirements for owning a company in Hong Kong. Thus, you require at least one direct who can reside in any part of the world. Even so, your company secretary must live in Hong Kong. Furthermore, the director and secretary must be different people. You also need a minimum of HK$1 for your issued capital. With those, you can register your business and in order to operate, you must operate a corporate bank account with an either a physical or virtual office.
Hong Kong prides in some of the least crime rates worldwide better than a wide range of international cities. It also features a futuristic and reliable electricity grid without room for blackouts. Then, it provides dependable yet affordable utilities. Its family friendly immigration policy and an abundant expatriate community allows for socializing and making new friends. You can interact with these foreign nationals in their unlimited private clubs, consulates, associations, chambers, networking clubs and special interest sets. Therefore, although it is expensive to live in Hong Kong, according to the Economist Intelligence Unit’s Live-ability survey, Hong Kong features high scores of 90.9%.
It prides in a rich entrepreneurial culture supporting work ethics and international as well as bi-cultural experiences. This environment favors businesses and entrepreneurs enjoy lower taxes not forgetting the access to China’s thriving economy. HK is Asia’s forerunner in finance and IT industries providing easy trading conditions free from corruption. All these factors make it a lucrative hub for businesses to establish their businesses and live in Hong Kong.
Above all, HK provides an efficient platform for international businesses owing to its multi-cultural environment. Thus, international entrepreneurs cannot shun from registering and locating their firms in Hong Kong.