By using Apprenticeforums services you agree to our Cookies Use and Data Transfer outside the EU.
We and our partners operate globally and use cookies, including for analytics, personalisation, ads and Newsletters.

  • Join our UK Small business Forum

    Helping business owners with every day advice, tips and discussions with likeminded business owners. Become apart of a community surrounded by level headed business folk from around the UK


    Join us!

Why so many foreign businesses set up company in Hong Kong?

K

Karen Chen

New Member
There are just so many cost and operational efficiencies even for small to medium sized businesses. No need to hire staff or rent office locally as company can be operated online. No VAT, no sales tax. Corporate profit tax rate 8.25-16.5%. Easy to understand and reliable business, banking and legal system.
 
Interesting

Interesting

New Member
I think because Hong Kong is a famous tax haven. Well-known examples of tax haven jurisdictions include Panama, Belize, the Seychelles, the Cayman Islands, the Isle of Man and Hong Kong. Very often, such territories are also called offshores, with companies registered under these jurisdictions described as offshore companies.
 
K

Karen Chen

New Member
I think because Hong Kong is a famous tax haven. Well-known examples of tax haven jurisdictions include Panama, Belize, the Seychelles, the Cayman Islands, the Isle of Man and Hong Kong. Very often, such territories are also called offshores, with companies registered under these jurisdictions described as offshore companies.
True to a certain extent. But Hong Kong is very different as it is one of the major financial centres in the world. Hence, it has strong credibility, solid legal, accounting, banking and business systems.
 
D

DrakeHeyman

New Member
Now, because of the pandemic, I think this situation has already changed.
 
D

DrakeHeyman

New Member
Now, because of the pandemic, I think this situation has already changed.
Yes, I also noticed that many foreign companies have settled in Hong Kong. Perhaps because of the good economy and the possibility of development. However, the company I work for has moved to Singarup. I think it's a more developed place. Fortunately, we had no problems finding an office and moving.
 
G

GavinBakerUH

New Member
It just seems to me that Hong Kong is the most convenient and profitable country for developing your new business
 
Last edited by a moderator:
Marbman

Marbman

New Member
I thought lots of people are now leaving Hong Kong due to China's heavy handed approach.
 
K

Karen Chen

New Member
I thought lots of people are now leaving Hong Kong due to China's heavy handed approach.
I spoke to many overseas contacts and some of them expressed concern over security for civilians as a result of the political issues. Being a local born who has resided in Canada and US for many years, Hong Kong has always been very safe, even now! Overseas media portrays a totally different, untrue perspective. Hong Kong has always been a safe, business friendly city!
 
R

Rachel Ng

New Member
From my perspective of consulting customers to register a company in Hong Kong for about 5 years, there are several benefits of doing business in this country that you could consider:
  • Attractive tax system

  • Free economy and trade

  • Straightforward access to Mainland China

  • World-class infrastructure

  • Productive workforce

  • Quality of life

Plus, the superiorities of Hong Kong is that overseas entrepreneurs are permitted to have complete ownership of their enterprises registered in its territory. There is no limit of holding percentage; therefore, they have the right to own their corporates either primarily or entirely.

 
P

pmorris

New Member
Well then, you can expect the best of the best and the highest levels of success.
 
Millwood

Millwood

Member
as many people said above, it's a tax heaven! and even the pandemic didn't change that
 
K

Karen Chen

New Member
One can have their own Hong Kong company to operate business on a remote basis. That is, no need to be in the city, no need to hire staff or rent office locally as most operations nowadays are done online and can be supported by local service providers. This is a true business friendly city.
 
M

masonstone

New Member
There are just so many cost and operational efficiencies even for small to medium sized businesses. No need to hire staff or rent office locally as company can be operated online. No VAT, no sales tax. Corporate profit tax rate 8.25-16.5%. Easy to understand and reliable business, banking and legal system.
Its basically cost effective
 
Koler

Koler

New Member
Taxes are lower there, and the salary is lower as well so fewer expenses.
 
L

LiamPullman

New Member
Hong Kong is a multi-million city with a lot of opportunities.
 
N

Normen

New Member
Hello. I am very grateful for such useful information for me.
 
Top