Hong Kong Company Formation |
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Hong Kong company formation can be an appealing, tax-efficient corporate vehicle to conduct international business. The following information will help your Firm determine whether Hong Kong company formation is the most appropriate corporate solution to fulfill your international business objectives: |
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Advantages of Hong Kong Company Formation |
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1. |
Hong Kong company formation portrays a positive image and is, hence, an excellent corporate vehicle to promote your company to customers, suppliers, investors, venture capitalists, governments and banks. |
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Hong Kong company formation is not perceived as being an offshore company in an international tax haven. Hong Kong is a reputable, regulated international trading jurisdiction. Hong Kong is positively ranked as the world's 12th least corrupt country in the 2009 Corruption Perceptions Index by Transparency International, a measure of corruption amongst public officials and politicians. |
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3. |
A properly structured Hong Kong company enjoys legal tax exemption on profits sourced outside Hong Kong, as outlined by the Hong Kong Inland Revenue Department. |
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4. |
Hong Kong is a competitive economy. It is positively ranked the world's freest economy in the Heritage Organisation's 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. Furthermore, Hong Kong company formation is simple and cost-effective. According to the World Bank's Doing Business 2010 Survey, Hong Kong is the world's 3rd easiest place to do business. The survey measures factors including Hong Kong company formation procedures, time, cost and minimum capital required to start a business. |
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Hong Kong boasts strong client confidentiality laws. However, Hong Kong has been added to the Organisation for Economic Cooperation and Development (OECD) ‘white list’ after complying with various OECD requirements. In this way Hong Kong provides a reputable image for your company in a respectable jurisdiction. |
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6. |
Following Hong Kong company formation, it is usually easy to set up global corporate bank accounts. Healy Consultants works with internationally-recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services. |
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7. |
Hong Kong company formation is especially popular with foreign investors setting up a regional or global headquarters, particularly those looking to access Chinese markets. According to the United Nations Conference on Trade and Development (UNCTAD), business-friendly Hong Kong is Asia's 2nd-largest recipient of foreign direct investment (FDI), after China, receiving US$59.9 billion of foreign inward investments in 2008 (Hong Kong Census and Statistics Department). |
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In its 2009 World Competitiveness Yearbook, the Switzerland-based IMD positively ranks Hong Kong as the world’s 2nd most competitive economy. The ranking takes into account factors including economic performance, government efficiency, business efficiency and infrastructure. |
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Unlike jurisdictions such as Dubai, it is not necessary to rent a physical office to complete Hong Kong company formation. Healy Consultants offers a full Hong Kong virtual office service, from short-term Hong Kong office rental to daily telephone answering and mail forwarding services. |
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Forbes Tax Misery Index 2009 rated Hong Kong as having the 3rd lowest tax misery in the world. The index takes into account corporate income, employer social security, personal income, employee social security, wealth tax and VAT/sales. Forbes suggests the index can be used as a proxy to evaluate whether a country’s policy attracts or repels capital and talent. |
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Disadvantages of Hong Kong Company Formation |
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1. |
Following Hong Kong company formation, annual audited financial statements must be submitted to the Hong Kong Inland Revenue Department. Healy Consultants will assist our clients efficiently and effectively complete this annual statutory obligation. |
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2. |
In accordance with Hong Kong Company Law, Hong Kong company formation requires the appointment of a Hong Kong-resident company secretary. Healy Consultants will act as your Firm's local company secretary, helping your company fulfill its ongoing statutory obligations. |
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A Hong Kong company has access to a very limited network of double taxation treaties. |
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4. |
Hong Kong is one of the world's most expensive cities, ranking 6th in Mercer Human Resources' global Cost of Living Survey. As a services and export-based economy, Hong Kong is vulnerable to i) high global oil and food prices and ii) the health of the global economy. |
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Contact Us For more information on Hong Kong company formation, contact email@healyconsultants.com or call us in Hong Kong at +(852) 8331 1911. |
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Back to Asia Pacific Company Incorporation page or back to Home page. |
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Buy the Hong Kong chapter of Healy Consultants' Asia Business Set Up book, to order call +65 6735 0120 or e-mail email@healyconsultants.com |
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