Hong Kong is one of the best places in the world to do business and every year more and more investors and entrepreneurs from around the world are moving to this dream city in the heart of Asia to grow their businesses. There is a number of advantages an organization can experience by making this move and in this article, we will be looking at a few of them.
Unlike in some of the big financial hubs of the world that slows the progress of businesses by implementing too many regulations and restrictions, Hong Kong gives its enterprises a great deal of freedom to engage in affairs the way that is most convenient to them. It will not take more than a couple of weeks to open a company in this city and foreign ownership restrictions does not apply to Hong Kong based companies. A range of B2B ecommerce platform facilities are also offered by the city for the companies to conduct business activities with other organizations. Because if this reason, some of the biggest multinational organizations have begun their operation here to conduct operations in a profitable and convenient manner.
Low tax rates
Taxes of Hong Kong is one of the best thing about it! The government of the city is very supportive to all industries and they do the best they can to keep taxes to a minimum in a simplified manner. The corporate tax rate is capped to a maximum of 16.5% of the assessable profits and the salaries tax applied on employees is no more than 15%. For those organizations that plan on relying on ecommerce solutions for dealing with overseas market places, life is made easier by the exception of taxes on income sourced from outside the city of Hong Kong, which is advantageous to all multinational organizations. Furthermore, there is no VAT or sales tax while no withholding taxes are applied on dividends and interest.
Ideal legal environment and governance
Although Hong Kong is a special administrative region of China, it doesn’t follow the same code of law. English common law is what governs the business activities of the city and various efforts are made to protect organizations and their employees. Strict rules and regulations are imposed with regard to copyrights, trademarks and patents while the protection of intellectual property is enforced.
The government is a pro-business in nature and is quite stable. The insolvent of politics in the organizational activities, both private and public is extremely rare and a free flow of information can be seen within the region. The ICAC (Independent Commission Against Corruption) has been set in place to battle the corruptions that take place in the corporate world and severe penalties awaits any party that disregards these regulations.