First of all, why Hong Kong?
The place is your gateway to the wave of growth that Asia is experiencing. Asia is the most dynamic continent at the moment, and Hong Kong the most respected and recognized place as a brand not only in Asia itself, but also in Western countries. This is a great advantage and one of the main factors in favor of registering companies there.
Statistics speak!
The local tax system is its greatest asset. It is one of a kind and different from other countries. Re-exports worth nearly HK $ 300 billion were made in July 2013. In 2012, Hong Kong ranked ninth among the world’s top traders, accounting for almost 2.8% of total world trade. It comes before nations like Canada, Italy and Belgium!
What is cool here?
Last year, Hong Kong was the world’s 10th largest exporter, accounting for almost 2.7% of total world exports. It should be remembered that even the United Kingdom lagged behind in eleventh position, with around 2.6% of the world’s total exports. What has helped this place reach such heights? Well, a tax system is a vital ingredient in recognizing where to register your business, because taxes have a direct bearing on the profits or turnover of the business. Places where the tax procedure is uncomplicated and places that charge less tax are viewed favorably, and Hong Kong tops the list.
Here are some reasons that make this place special!
- You only have to file taxes once a year when you open a business here.
- There is a simplified tax system that only levies income tax at a rate of 16.5% without value added tax or commercial tax.
- For transactions outside of Hong Kong, the corporate tax rate is 0%. This allows for savings on sales tax and corporate taxes at a minimum.
- More expenses can be written off against a Hong Kong corporation. The United States, for example, does not allow you to write off a glass of wine for your customer or their switching expenses as a business expense. However, in Hong Kong there is no such prohibition.
- The place follows a single-tier tax system, and therefore the tax rate on capital gains, shareholder dividends, and foreign-sourced income is 0%.
- There are no currency exchange controls here, allowing free flow of funds, easy currency exchange and transfer, and convenient and fast handling of credit operations.
Without a doubt, the place is the best place for business registration. Not only is it strategically located, but it has one of the cheapest tax systems in the world. So make a wise and informed decision today by registering your business there and see the difference.
