Hong Kong is known for being the freest economy in the world. It has minimum bureaucracy and restrictions in place. International trade is integral to Hong Kong and it is due to this reason that everyone is welcome to set up business in the city. As there is minimal government intervention, you can easily meet the requirements for setting up a business in Hong Kong. Besides, Hong Kong boasts a fair legal system that is based on the implementation of strict anti-corruption measures. The city offers a similar appeal to Singapore. To start a business in Hong Kong, entrepreneurs only need to meet basic requirements. If you are interested in starting a business in Hong Kong, this post is just for you as it looks at the top 5 things you should know about company incorporation in this part of the world.
- Easy To Set Up a Company
The first thing that you should know about company incorporation in Hong Kong is that it is very easy. Hong Kong company incorporation can be completed in as little as five to seven days if you are already in Hong Kong. Since everything is done online, you can apply for incorporation and register the business in as little as an hour. Moreover, if you are a foreigner in Hong Kong, you are permitted to stay for up to 180 days without needing a visa.
- Directors Can Be of Any Nationality
Another great thing about company incorporation in Hong Kong is the fact that directors can be of just about any nationality. As long as they have a clear criminal history and have never had trouble with the police, they can serve as the directors of your company. This makes it very easy to meet the requirements of setting up a company in Hong Kong.
- There Are Clearly-Defined Schemes to Choose From
Businesses in Hong Kong get to pay some of the lowest tax rates. Generally, companies only need to pay a tax rate of 16.5%. This makes it extremely profitable to do business in Hong Kong. As you get to keep most of the profit, you can either reinvest it in the business or send the money home. The clearly-defined schemes allow you to quickly calculate the amount of tax you would need to pay. This makes it easy for you to draft budgets and forecast future liabilities.
- Little Audit Interference
To ensure that companies have no trouble operating in Hong Kong, there is little audit interference. The government allows you to easily meet the audit requirements without having to spend a ton of money on auditing. It does not get better than this.
- Support for the Startup Community
Hong Kong aims to attract the startup community from across the globe. To achieve this goal, Hong Kong offers extensive support to the startup community in the form of a waiver on business registration fees, solutions for improving productivity, and subsidies for using technological services.