HONG KONG

Hong Kong has a very open economy and there are no restrictions on foreign investment or on the transfer of income and capital in foreign currencies. The main attraction of starting a business in Hong Kong lies in its establishment as a worldwide financial and market trading centre and a gateway for markets in the Asia Pacific Region. The infrastructure of Hong Kong is specifically geared to allow free enterprise to flourish with a minimum of bureaucracy and restriction. Profits from trading activities not taking place in Hong Kong and not with Hong Kong customers are outside the scope of taxation, 16.5% tax on Hong Kong sourced income only, 0% tax on non-Hong Kong sourced income and no tax on capital gains. Unlike Singapore, Hong Kong does not consider services performed by a Hong Kong company, outside of Hong Kong, to be locally sourced. If the requirement is for providing services in multiple locations, opening a company in Hong Kong is the clear choice. Given its strong legal framework, Hong Kong is frequently chosen as a location to hold intellectual property that is to be used in China and Asia Pacific.

SETTING UP A COMPANY IN HONG KONG

It is important to have a full understanding of your options before deciding how to open a company in Hong Kong. Overall growth for your company in Hong Kong can be hampered by making the wrong choice, so please consider the following points when deciding the best structure for your needs.
  • The current nature of your business
  • Business expansion plans
  • Current capital to invest
  • Need for outside investors, or desire to attract investors in the future
  • Tax implications of structure
  • Personal liability and company risk
  • Audits and other requirements to remain compliant locally
  • Mixture of Persons and Companies

Interested in Hong Kong company formation?