Hong Kong is a global financial centre and is home to the world’s busiest business registry. It is also one of the most visited cities globally, with millions of people flocking through its streets every day. Business Registration in Hong Kong provides businesses with several tax benefits. A company formation in Hong Kong will lead to significant tax savings for businesses. A business can save up to 15% in tax by incorporating.
Several benefits come with business registration Hong Kong. The first and most obvious one is the absence of the need for giving company seals. Companies are not required to register to open a business. However, this does not mean that there are no business registration requirements. Companies must submit annual accounts, Annual Income statements and pay various other fees to the government.
Another benefit of business registration in Hong Kong is the absence of the necessity to pay the corporate tax. Companies in Hong Kong can register tax-free. It is important to note that the benefits mentioned above are offered only to those companies that do not become bankrupt within two years of registration. Failure to pay corporate tax despite being registered does not qualify a company for tax exemption. In the case of insolvency, all the benefits provided by the law are lost.
By paying the annual company tax, it is also possible to enjoy the benefits of company formation in Hong Kong. However, it is essential to note that even a single offshore company cannot remain in business without the consent of the tax authorities in Hong Kong. Any company that fails to register or pay the appropriate taxes cannot open a company registration in Hong Kong.
The presence of the free trade zones in Hong Kong facilitates the entry of foreign direct investment. These investments are based on the free trade agreement between the European Union and China. As a signatory to the agreement, Hong Kong possesses a free trade zone, enabling the entry of foreign direct investment.
Moreover, the free-trade zones have led to an increase in the number of foreign enterprises in Hong Kong. Thus, the free trade area in Hong Kong facilitates the entry of multi-national companies. Furthermore, outsourcing is highly preferred in the Hong Kong legal environment. Therefore, business registration in Hong Kong is highly beneficial to all companies that want to expand their operations in this regard. In addition, the availability of all the information required by the companies will facilitate easy business transactions.
One of the significant benefits of business registration in Hong Kong is the absence of double taxation. Under the current tax system, all the profits from an enterprise do not attract a different tax treatment. As a result, there are many instances where an entrepreneur has been asked to pay tax in two other places, sometimes even in the same country. By way of business registration in Hong Kong, the company will be treated as a sole proprietorship for tax purposes only.
There is a wide range of companies available in Hong Kong. Most of them are highly professional and experienced. They can provide expert advice and assist the companies in registering their businesses. The companies may be able to handle the complicated issues related to business registration in Hong Kong. These companies offer registration services in the local language and at a reasonable cost. This business registration in Hong Kong can be efficiently conducted by anyone who has the proper knowledge and background in this regard.