The benefits of starting a company in Hong Kong are enormous. This vibrant financial hub has become a leading international business destination attracting thousands of multinational companies and global investment firms to set up their headquarters. Multinational companies feel the immense importance of the free-market system and the low cost of doing business in Hong Kong. The low tax rate and intense or no corporate taxes attract many companies to set up their headquarters. Also, the laws of the country make business registration and operation very easy and less cumbersome. Moreover, the legal frameworks are pro-business, and the entrepreneurial mindset imbibed in the population is ideal for starting a company in Hong Kong.
There are several reasons why starting a company in Hong Kong can be beneficial for you. Firstly, the low rate of taxes that the government charges on businesses in Hong Kong is a significant factor that makes setting up a company in this area very attractive. Another reason why many international companies prefer to open their business in this part of China is the absence of corporate and income tax on personal income derived in that area. Hong Kong is a semi-dependent economy. Despite over a hundred other currencies worldwide, Chinese money plays a dominant role in the trade scenario between it and all other economies. That is why exporters worldwide appreciate the currency exchange rate in the country very much. Moreover, the importation and export of goods and services, including the import and export of goods and products, is facilitated by the Chinese government with meagre import and export duties.
Starting a Hong Kong company also allows you to establish a premier company in the Chinese authorities’ eyes. You will not be obliged to register your business as a public company and remain free from the obligations that companies in other countries must fulfil. Also, starting a Hong Kong company under the SIC or registration of corporation act does not necessitate the payment of income tax and corporate tax in the same way that companies registered in other countries are required to pay such taxes. The main reason for this is that the limited company owner enjoys several benefits not appreciated by public companies’ shareholders.
The limited company in Hong Kong can grant its director and officers and give them the authority to manage the company and make decisions on behalf of the shareholders. The company secretary has no other role than that of being the company secretary and ensuring that everything is done according to the rules and regulations laid down by the Hong Kong government. It means that the company secretary can set the day and time when the company meetings are held, sit the company directors to ensure that they carry out their duties, and pay the necessary taxes. On the other hand, the company secretary cannot engage in any transactions for its benefit and has no further role to play in the company’s running.
As a result of the above privileges enjoyed by the limited company in Hong Kong, it is easy for the company to avoid paying a high tax amount. The company secretary must ensure that the correct tax payments are made to the government and provide the necessary services. The formation of an honest agency fulfils its duty of the company secretary.
Many requirements need to be fulfilled by the applicant. Most importantly, the applicant needs to have a business bank account. A business bank account is one of the essential requirements for starting a company in Hong Kong. An honest agency will not consider an application without a business bank account because this is the easiest way to get into trouble. The legitimate agency will help you get a business bank account if the previous directors and employees’ bank accounts are not available for review.
Besides having a business bank account, you should also submit your business plan to the bank. A good and reputable agency will help you get a loan for your company even with bad credit history. In addition to the business plan, an honest and reliable agency will help you prepare a registration form, annual report, annual financial yearbook, and audited financial statement.
Most importantly, before starting a company in Hong Kong, you must make sure that you will be starting a company that will be profitable. Therefore, it is essential to find a bank account from a licensed agency. A bank account from a non-professional agency will not be considered beneficial because the non-licensed companies’ clients do not have the patience to wait for a long time before getting their money. Therefore, finding a licensed and reliable agency is the best choice for your business.