Company Registration in Hong Kong for Foreign Business Owners and Entrepreneurs

If you are looking for Hong Kong company formation services, you will be happy to know that there are many options. Foreigners who wish to set up business in Hong Kong can easily relocate by applying for an appropriate visa as well as own 100% shares of a private limited company.

Here are some reasons why registering a business in Hong Kong is so advantageous:

Premier Strategic Location

Hong Kong’s ideal location gives you the perfect pathway for expanding your businesses into China and the global market. Forming your company in Hong Kong gives you a strategic location in the heart of Asia where you can enjoy transport connections and be alongside many of the region’s most exciting business markets.

This location has shaped Hong Kong into one of the world’s premier  multicultural cities, boasting a culturally diverse workforce and a large expatriate community.

Clean Governance

Separate from Mainland China, Hong Kong has an independent legal system that is based on English Common Law. This legal system is more welcoming to foreign business and has remained mostly unchanged since the retrocession in 1997.

Gateway to China

Hong Kong is a highly appealing trading partner and investment conduit for Mainland China.

In 2003, Mainland China and Hong Kong signed CEPA (Closer Economic Partnership Arrangement) – a free trade agreement that pushed for cooperation in goods, trade in services, investment and economic and technical cooperation.

CEPA helped bring new business opportunities to the Mainland, Hong Kong and all foreign investors. Because of this trade agreement, Hong Kong now serves as a perfect springboard for foreign investors who wish to enter the Mainland market.

Regular flights and several new rail and road links ensure smooth and speedy travel across the border, while Hong Kong offers the benefits of a simple and low tax regime, free-market policies, and free flow of information.

Low, simple and competitive tax regime

One of the largest reasons why Hong Kong is a popular choice for overseas company registration is because of its enviable tax system.

Simply put, Hong Kong boasts one of the simplest tax systems in the world and one of the lowest tax rates in the world; this is the main reason why foreigners seek to incorporate a company in Hong Kong.

Hong Kong only imposes direct taxes and has generous allowances and deductions which help reduce taxable amounts. These are the tax rates in Hong Kong:

Tax Rates
Profit tax is split into two tiersTier one is a 8.25% tax rate for a first net profit of HK$2 million. Anything over HK$2 million is capped at 16.5%
Salaries tax -– a maximum of 17%.Hong Kong has no capital gains tax, nor any withholding tax on dividends and interest tax. Furthermore, there is no sales tax, VAT or estate tax in Hong Kong.

There is no capital gains tax, nor any withholding tax on dividends and interest tax. Furthermore, there is no sales tax or VAT and estate tax in Hong Kong.

World Class Infrastructure

Hong Kong also boasts a world class travel infrastructure. The metro is considered to be one of the best in Asia, and the HK Airport is one of the busiest airports in the world with flights to over 220 destinations.

Hong Kong is relentlessly committed to developing and upgrading its infrastructure in order to meet the growing demands of businesses. Some examples being the Hong Kong-Zhuhai-Macao Bridge, and the raising Hong Kong International Airport Master Plan 2030.

The Guangzhou-Shenzhen-Hong Kong Express Rail Link was opened in 2018 to offer speedy rail travel between Mainland China and Hong Kong. This Rail Link provides a world-class network with efficient and easy connections to all major cities in the Greater Bay area.

Hong Kong is also the preferred Exhibition and Convention Centre in the region and has received several awards and accolades. It is often voted as the ‘Best Convention and Exhibition Centre in the Asia Pacific’.

In addition, the city has invested in business-friendly areas like Cyberport and Hong Kong Science and Technology Park.

Hong Kong has also made great investments in its broadband and fibre-optic infrastructure so everyone is able to reap the benefits of reliable, high-speed internet.

Hong Kong’s telecommunications infrastructure is one of the most technically advanced in the world. Businesses can enjoy reliable and secure communications throughout the territory, with the internet connecting over 90% of the city.

Many investors and entrepreneurs are choosing to set up their businesses here, our experts are happy to provide more information to help you streamline your business plan.

This is a key selling point for registering your business in Hong Kong.

Free Port in Oversea Trading Business

Due to a straightforward customs clearing, Hong Kong has earned the status of a “free trade zone”. Duty is only paid on products such as liquors, tobacco, hydrocarbon oil and methyl alcohol. However, the import of wine and beer has been made duty-free.

This has crowned Hong Kong as one of the most important hubs for import, export and storage businesses serving retail and individual buyers.

Efficient Market

While Hong Kong appears to be a small market with a small population, it actually boasts the second-highest buying power in Asia.

Because of its highly efficient market, Hong Kong has attracted knowledgeable, experienced and well-connected persons from around the world.

Business registration in Hong Kong is made simple with Korchina – contact us today to get started.