Increasing number of companies around the world go to Hong Kong to develop products and services, create innovative technologies and create R&D projects. To this day, Hong Kong remains one of the world’s leading industrial region making doing business in HK an excellent location for international companies. Some of the key benefits of doing business in Hong Kong are outlined below.
1. A Global Leader in Free Trade
You don’t become the freest economy in the world for 25 years by a fluke. On the other hand, to say that Hong Kong is as free as it is due to laissez-faire policies would also be an unfair assessment.
Since the 1970’s Hong Kong has actively worked to encourage both the economy and people of Hong Kong to flourish, through low taxation, and healthy income through government land leases.
Additionally, Hong Kong has ensured there are no legal restrictions on foreign ownership, inward and outward investments, or foreign exchange controls when setting up business. Potent anti-corruption measures and a strong (English Common Law) legal system top things off for true business freedom.
2. Low Tax Rates, Simple Tax Rates
The theme of Hong Kong knowing how to woo new investment continues, by implementing one of the lowest and straightforward tax systems in the developed world. Personal tax rates start at just 2%, and the corporate tax rate maxes out at 16.5%.
There are also several other generous policies that have consistently encouraged foreign investment over the decades:
- No withholding tax on interest and dividends
- No capital gains tax
- No VAT/GST on goods and services
- Social security benefits are strong despite low tax rates
3. Permissive Immigration Policies
Hong Kong understands the need for entrepreneurs and business professionals to be able to travel freely in and out of a major economic hub. Currently Hong Kong offers visa-free visits for nationals of about 170 countries and territories. These stays can be for periods of seven days all the way to 180 days.
There are also several schemes for the employment of foreign professionals, and dependent visas are offered to those who take most forms of employment in Hong Kong.
Check the rest benefits of doing business in Hong Kong at this Hong Kong Company Registration blog.
