The most common reason is that China’s economic situation is starting to look a lot like its American counterparts. China is slowing down, but the slowing down is caused by the global recession, world events, and deflation. All these factors combined mean that it would take some time before China started recovering from the slowdown. Simultaneously, a business in Hong Kong with a Chinese theme or name will be instantly seen as an investment opportunity by potential international customers.
Opening a business in Hong Kong as a foreign employee is also a great way to get familiar with the local culture. Having an office in China and working there for a few months or even a year will help you develop a better understanding of local business practices. The language will become second nature, and you will start understanding why certain things are done in a particular way or why certain things are not.
Opening a business in Hong Kong as a foreign worker will also allow you to explore the many business formation options in the Chinese government’s particular administrative area. You may choose to open a limited liability company, a corporation, an unincorporated partnership, or a qualified trust. You would be able to open an office in the tax offices of Hong Kong and enjoy all the benefits of having a permanent address in this regard. You would benefit from the ease of doing business in the country as the local business office managers and the tax office would be aware of your legal status.
Opening a business in Hong Kong as a foreign employee also gives you the chance to obtain a business license. The process of getting a business license would take a few days, and after that, you would be able to operate your company legally. Your company would then be subjected to some inspections by the different regional departments of the government. The inspectors are aware of the other requirements for the business set-up, and you would therefore be able to enjoy some of the best benefits available under the law.
Opening a business in Hong Kong as a foreign employee also gives you the chance to get some of the best deals for your business formation. The economic hub of the world is fast becoming the most preferred locations for business registration and operation. Companies need to register to get a good deal on outsourcing services or products from other countries. Business office space is cheap in Hong Kong, and the payment for this service is even less expensive than in any other part of the world. It means that there is no need to increase the budget for your business to open it.
There are numerous reasons why you should open a business in Hong Kong. Even if you plan to hire some people for the company, you will still get some tax benefits. The tax concession for a foreign employee would help you decrease the amount of income you have to pay to the Chinese government. Opening a business in Hong Kong also allows you to benefit from the economic growth of the region.
When setting up a business in Hong Kong, there are many things that you need to consider. You must choose the best location for your business to not spend too much on the office space’s rent. You must ensure that your employees have all the Chinese government’s relevant documents when working for you. When dealing with a foreign national, you must follow all the Chinese government’s necessary regulations.
In opening a Hong Kong business as a foreign person, you must know all the Chinese authorities’ rules. You do not want to get into any legal tussle with the Chinese government over something that has no meaning for you. Hiring a commercial law firm would ensure that you get all the help you need in this regard.