As a global hub with profuse amounts of information and prospects, sole proprietorship Hong Kong formation gives unparalleled access to a consumer market that is anticipated to exceed 450 million people in southern China alone. With first-rate infrastructure and a comprehensive legal system of its own, it offers an interestingly viable financial & commercial milieu to numerous entrepreneurs, businessmen, and traders. Consequently, Hong Kong is currently one of the most popular areas that offer international entrepreneurs the opportunity to make a way into Chinese markets, with many people increasingly establishing their own businesses in Hong Kong with different purposes. The whole idea is that it not only enhances the image of the company itself, but also ensures that there is increasing competitive proficiency in the global marketplace. The information below will assist you in figuring out if Hong Kong company formation is the most favorable approach through which to accomplish this.
We know there are many causes and conditions that are responsible for the success of any business. Hong Kong is believed to be one of the finest cities to launch and operate a business, as it scores high on factors that matter to businesses. Below are some of the key advantages of starting a sole proprietorship Hong Kong and will offer you with some of the important answers as to whether Hong Kong company formation is the most advantageous approach for a business. 1. Being an international hub of information exchange and a major transportation center, Hong Kong is the crucial point of all nautical activities in southern China. It is one of the most important seaports globally, especially with regards tonnage of shipping using its amenities, cargo managed and the number of commuters transported. 2. World’s most energetic market driven by the principle of free enterprise, free trade and free markets open to everyone. No constraint on inward bound and outward investment, no foreign exchange controls and no foreign ownership limitations. 3. Tactically situated extremely close to China. Air, rail, road and sea links are contemporary and efficient and provide unparalleled entrance to China’s flourishing southern provinces for countless foreign entrepreneurs. 5. With very low tax rate (around 16.5% on net profit), and no tax liability for income not earned in Hong Kong (offshore income)
6. With strong infrastructure, securely established social and political background, most businesses opt to found business undertakings in Hong Kong as it considered to be politically steady with a pro-business attitude and free market ideologies. 7. Benefit from smooth and convenient international banking system. A number of banks take into account the interest of 32 foreign countries. The Hong Kong banking and financial services is handled by the Hong Kong Monetary Authority (HKMA). The features and advantage of availing of Hong Kong for private banking, bank accounts, corporations and offshore asset protection are widespread.
Sole proprietorship Hong Kong Formation procedure is a reasonably uncomplicated and smooth process. The main requirements are: 1. At least one company director/shareholder and a Hong Kong resident company secretary (above the age of 18) are mandatory. 2. Confirmation regarding the company name and corporate structure 3. A smallest issued capital prerequisite of HKD 10,000 and paid-up capital requirement is amounting to only the sum of one dollar. 4. There is almost no constraint in the field of business scope when you found a Hong Kong company. 5. Business requirements, like opening a Hong Kong corporate bank account, establishing an office (virtual office is also an alternative).