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Posted on March 26, 2021
Carrying out business in today's modern era is difficult, with the fast-growing competition across the world is complicated but if you select the liberalized business location then it may become easy to a certain extent and one of such locations is Hong Kong.
In the present scenario, Hong Kong is recognized as such a successful business centre across the globe. From the past years, Hong Kong has been clasping the top-ranking in the list of "Ease of doing business" and recently in 2020, the city has attained 3rd position. The Wall Street Journal and the Heritage Foundation have referred to Hong Kong as the freest economy in the world. With all these facts, it is quite simple to interpret how Hong Kong is bestowing business people with the modest tax policy, easy connectivity, developed communications infrastructure, and the free circulation of goods permits for businesses of all industries to succeed and flourish in the Hong Kong economy.
Hong Kong is recognized as a successful business hub, with a liberalized economy and world-class infrastructure, businesspeople can always find a way for prosperous business in Hong Kong. Being a uniquely global business city and a financial hub for business entities, here are the key benefits of starting business in Hong Kong:
An International Junction – Hong Kong offers the best connectivity with the entire continent in context of business. It is located in the heart of Asia, and its proximity to the mainland, makes Hong Kong the perfect connecting point between The West and East and facilitates the entry in China. Hong Kong has robust and reliable collaborations with the ASEAN countries, creating a strong foundation for establishing the pillar of successful business. The city has the fusion of western and eastern culture, which is beneficial for business people in many terms.
World's Freest Economy and Free Trade – Hong Kong economy is counted as the most dynamic economy in the world and is the financial hub for many business entities, irrespective of their scale and nature. The robust economy of Hong Kong has been contributing to the GDP growth at an average annual rate of 5% from over the past two decades. Additionally, the transportation cost is cheap for imports to Hong Kong from abroad, cheaper than Mainland China. However, Hong Kong goods and products can even be imported into China under zero tariffs, as long as your business entity complies with CEPA rules.
Hassle-Free Setup – As compared to other robust economies in Asia, it takes comparatively less time in Hong Kong to set up the business entity. The laws and orders in the economy are transparent enough for business people to comprehend. Additionally, the Government institutions of Hong Kong are consistent and straightforward regarding the requirements for setting up a business entity and one of the most prominent benefits is in Hong Kong English common law prevails.
Easy and understandable tax structure – From the decades, since tax structure is always the main concern of businesspersons, Hong Kong practices a low-rate and straightforward tax system, and financial management system. There is no withholding tax on dividends and interest, collection of social security benefits, nor any capital gains tax. There is no VAT in the jurisdiction of Hong Kong. In a nutshell, a business person can avail many tax benefits in the economy.
Considering the prior use of intellectual property - Hong Kong has set up a separate department for managing the IP matters, known as the Intellectual property department of Hong Kong. This institution while filing for copyrights, trademarks, and patents, Hong Kong takes into consideration the prior use of IP for business owners. The legal jurisdiction of Hong Kong is committed to enforcing regulations for registered designs, patents, copyrights and the protection of Intellectual Property Rights (IPR) and ensures the protection to proprietors’ rights.
Open economy with liberalized framework – Hong Kong economy is one of the most liberalized economies in the world. There is no legal restriction on inward and outward investments, foreign ownership, and foreign exchange controls while setting up a business entity. Factors such as the sizable foreign exchange reserves, strict anti-corruption regime, and robust legal system are playing critical roles in strengthening Hong Kong’s position as a business friendly region.
Starting a business in the robust economy like Hong Kong is a courageous move. There are an ample number of benefits for opening up a company in Hong Kong, but at the end of the day, all of these reasons conclude to your efforts and will to carry out business in such a liberalized economy. And to support you in this we Future Business Center are with you at every step.
Future Business Centre is getting into the market to add value to your growing business.
We not only bestow you with furnished and well-equipped offices but also focus on providing you with a helping hand. _____________’s highly competent staff can help you in many ways. Most of the staff are multilingual, making receiving and guiding internationals guests and clients an easy task to perform. The staff can even assist you from welcoming your guests and clients to handle the reception work.
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