GuideMeHongKong.com has identified (a) ease of company formation, (b) low taxes and (c) access to China as the primary motives behind the growth in Hong Kong company incorporations by foreigners. The results are based on a survey conducted by the site and an analysis of its site traffic.
(PRWEB) June 13, 2010 -- Based on the analysis of a survey and its web analytics data, GuideMeHongKong.com has identified the top three likely reasons why small business owners choose to incorporate a company in Hong Kong: (a) ease of company setup, (b) low tax system and (c) preferential access to the mainland China market.
The increased interest in company formation appears to be supported by the new data released by the government. Statistics released by the Hong Kong Company Registry show that there has been a steady increase in the number of Hong Kong companies that were set up in April 2010 (13,250) as compared to January 2010 (10,121).
A study of Hong Kong company registration requirements by GuideMeHongKong.com shows that a Hong Kong company can be setup with one director (individual or company, local resident or foreigner), one shareholder (100% foreign shareholding is permissible), a company secretary, paid-up capital of HK$1.00, authorized capital of HK$10,000 and a registered address. According to Ms. Low, "It takes only 4-7 days to setup a company in Hong Kong and unlike most other countries in the region there is no red-tape or bureaucracy involved. The Hong Kong company formation requirements are minimal with no restrictions on foreign ownership. Moreover, with efforts underway to streamline Hong Kong's company incorporation process, entrepreneurs will soon benefit from one-day company incorporation in Hong Kong. It's not surprising that most visitors to our website are exploring Hong Kong company formation topics."
The Hong Kong-focused business information portal cited Hong Kong's simple and low tax system as another distinct feature behind Hong Kong's attractiveness for doing business. Hong Kong's tax system ensures a low tax burden to small business owners who choose to setup a company in Hong Kong. According to GuideMeHongKong.com, Hong Kong's corporate tax rate of 16.5% is the lowest in the Asia-Pacific region. Other notable features are no VAT / GST, no capital gains tax, no withholding tax on dividends or interest, no inheritance tax / estate duty, no foreign exchange controls, no imputation system for dividends, and no taxation on foreign sourced income. "We find that Hong Kong has set the benchmark as far as taxes are concerned. For global minded entrepreneurs it's all about maximizing profits while minimizing costs. The potential for entrepreneurs to benefit from Hong Kong's tax system is huge, and that's putting it mildly. Bearing testimony to this is our taxation page view counts. We find most of our visitors referring to our pages on 'Hong Kong Tax Rates', 'Hong Kong Corporate Income Tax Guide' and 'Hong Kong Tax Calculator'," said Ms. Low.
The third benefit to accrue to Hong Kong companies is preferential access to the mainland China market under CEPA (The Mainland and Hong Kong Closer Economic Partnership Arrangement) - a bilateral Free Trade Agreement that ensures zero tariff on the export of qualifying Hong Kong made products to mainland China; easier and faster access to the mainland for qualifying Hong Kong based service providers; and trade and investment facilitation in certain areas. GuideMeHongKong.com points out that one of its most popular key phrase search is 'Hong Kong-China CEPA'. "After the announcement of recent enhanced trade and investment facilitation measures and relaxation of market access conditions between Hong Kong and the mainland, more visitors are searching for information on CEPA. Apart from the ease of doing business, taxes and proximity to the mainland, business entrepreneurs can benefit from political and economic stability, an efficient legal system and a talented workforce. Entrepreneurs can fast-track their business setup and expansion plans in the Asian region by choosing to incorporate a company in Hong Kong. Based on our analysis, we reckon that Hong Kong is going to remain a popular destination for company set up over the next few months." added Ms. Low.
For more information about company formation and taxes in Hong Kong, refer to
Homepage: http://www.guidemehongkong.com
Company Formation: http://www.guidemehongkong.com/company/c745-hong-kong-company-registration-guide.htm
Corporate Taxes: http://www.guidemehongkong.com/tax/c761-hong-kong-corporate-income-tax-guide.htm
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[Via Legal / Law]
3 comments:
I believe also that because of the Hong Kong's strategic location and lowest tax rates are some of the factor why many foreign investors started a business there. Most especially, they have a quick Company Formation.
Hi there! Yes, Hong Kong Company Registration is still in demand. And I just want to share too that you can easily open Bank account in Hong Kong. It is safe, secure, and convenient. And actually, you can open bank account online. Try it! :)
Thank you for shedding light on these growth-driving factors. As I embark on my incorporation journey, I'm carrying with me the knowledge that I'm entering a dynamic environment driven by elements that align with my aspirations.
The article's breakdown of key factors is informative and relatable. It's not just about statistics; it's about the ecosystem that supports businesses like mine. From strategic location to ease of doing business, each factor makes me feel more confident about my choice of company formation Hong Kong.
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