There are many benefits to opening a business in Hong Kong as a foreign person. The Hong Kong authorities’ rules and regulations are much friendlier to foreign companies than those in China. Another benefit is the type of legal system that prevails in Hong Kong, which is different from that in China.
Most of these problems involve disputes over intellectual property rights or proprietary information for opening a business in Hong Kong as a foreign. With company formation in Hong Kong, you also can access the latest inventions and advances in technology. Moreover, you will have access to banking facilities and a free trade area. You also have a good network of suppliers ready to assist your business.
One of these is that it can be challenging to obtain a business registration in the local stock markets. It is because it can take years of study to be eligible for the Hong Kong stock market. It contrasts with Chinese businesses, which only require a simple application for registration.
Another benefit of opening a business in Hong Kong as a foreign person is that there are no personal taxes to pay. It is not the case for Chinese companies. The central government in China will charge these taxes. However, foreign businesspeople may be required to pay taxes when they purchase office space, rent offices, and hire staff in Hong Kong. It contrasts with China’s situation where foreigners have been accused of undermining the national economy by buying small businesses.
Finally, one of the essential benefits of opening a business in Hong Kong as a foreign person is that there are no capital requirements to be fulfilled. Business formation in the city is not considered an expense; instead, it is regarded as an investment. Foreign investors will find that this can translate to better deals on almost every contract they sign. For example, suppose you are interested in purchasing a small retail outlet in the financial district. To acquire it, you would need to fulfil the standard commercial capital requirements – a bank loan and other commercial property requirements.
On the other hand, if you were to start up a small retail outlet in the evening hours, you wouldn’t necessarily need to fulfil the above requirements. You may require no capital at all. The power of word-of-mouth advertising is remarkably high in Hong Kong. Almost everyone you know is probably connected with someone who opened a business in Hong Kong. Therefore, your chances of getting contacts like this are relatively high.
As such, business formation in Hong Kong as a foreign person frees you from catering to local needs. You are free to venture into whatever business you choose to run. Moreover, you will not have trouble finding clients at night, because there are always many businessmen. It will go a long way in ensuring that your business can thrive in the wake of economic development.
Opening a business in Hong Kong as a foreign person also offers an array of tax benefits. Since you are not considered a country resident, you will not be required to pay taxes on your income or assets. Most importantly, you will also not be required to pay for social security as it is for a local person. All these perks make doing business in Hong Kong one of the easiest ways to set up a business in the region. All you need is the right business plan and a bit of luck.