HK as Financial Center

Hong Kong is known worldwide as a financial and business center with an extremely favourable tax regime, highly developed infrastructure and attractive conditions for doing business.

So, why do businessmen from all over the world want to incorporate a company in Hong Kong? There are several main advantages:

Great location

Located in the heart of Asia, Hong Kong is in close proximity to all strategically important markets, especially to the Chinese market. Due to the “Mainland and Hong Kong Closer Economic Partnership Arrangement” (CEPA), which gives companies and residents of Hong Kong a number of preferences for doing business in Mainland China, this jurisdiction is undoubtedly the most beneficial for doing business in China. Thus, you can legally do a business in China with a Hong Kong company, i.e. enter into contracts with Chinese suppliers and buyers on behalf of the Hong Kong company and receive funds from China to the account of the Hong Kong company.

Easy company incorporation procedure

Setting up a company in Hong Kong is a quick, easy and fairly cheap procedure. This is one of the main reasons why so many businessmen choose this jurisdiction. After collecting all the necessary documents, selecting the name and filing an application to the Companies Registry, it takes only 1-5 working days to complete the procedure. And our company would be glad to make this process even faster and easier for you!

Favourable tax policies and a simple taxation system

Hong Kong has a very simple taxation system. Companies have only one tax to pay – a profit tax, and this tax is levied only on profits derived in the territory of Hong Kong. The tax rate depends on the amount of profit (8.25% or 16.5% rates). However, if the company has not conducted its activities in the territory of Hong Kong, then it may obtain offshore status and be completely exempt from profit tax.

Tax reporting only once a year

In comparison to China where companies have to file tax returns every three months, the returns in Hong Kong are filed only once a year. The procedure itself is quite simple and similar to the audit procedure in other countries of the world. First, the accounting statements are prepared based on the company’s activities, then the audit is done by a Certified Public Accountant, and finally the report is submitted to the tax authority.

The prestigiousness of running a Hong Kong company

Hong Kong has been at the top of the Global Competitiveness Index for several years. In 2019 Hong Kong took 3rd place in the ranking which highlighted its perfect law enforcement and legislative systems, effectively working state authorities, social stability and a free and open market. Therefore, having a company in one of the most developed countries is not only convenient, but also extremely prestigious.

Convenient and effective banking system

Hong Kong’s banking system is known as one of the best in the world. There are no currency control in Hong Kong, which allows easy and almost instantly make payments and receive funds into accounts. In addition, most bank accounts are opened in several currencies at once, so the account holder can receive and send transactions in 10 to 15 currencies without the need to exchange into the local currency (Hong Kong dollar) which is pegged to the USD.

Our company has been working in the Hong Kong market since 2016, and has proved itself as a reliable assistant in doing business in this jurisdiction! Welcome to check up the list of our services!