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How to start a business in Hong Kong?

Hong Kong is a Special Administrative Region (SAR) of the PRC. Due to its location, minimal corruption, loyal and competent government policy, Hong Kong has rightfully earned the status of one of the main financial centers in the world. Company registration in Hong Kong is a very profitable decision in favor of business development, especially if you are focused on the Asian market.

Is Hong Kong offshore?

It should be noted that Hong Kong is not an offshore, in the strict sense of the word. Jurisdictions of this kind, with intermediate between offshore and ordinary tax regimes, have acquired the name “mid-shore”.

Benefits of registering a company in Hong Kong

Since Hong Kong has almost complete autonomy and independence from China, its economy is based on a free market, low taxes and minimal government intervention in market processes.

These features make Hong Kong an extremely attractive place for company registration among investors and businessmen. Add to this the ability to register a company in Hong Kong remotely, and also manage it.

In World Bank rankin, Hong Kong is ranked 3rd for ease of taxation and overall 5th for ease of doing business, leaving behind such giants as the US and UK. There are about 150 banks in Hong Kong that can compete on equal terms with European banks and provide favorable conditions for opening a corporate account.

Also in Hong Kong, convenient Internet banking has been developed, which, along with a high level of confidentiality, gives additional advantages to remote business.

In Hong Kong, there is no currency control at all, but at the same time, anti-money laundering acts are spelled out in the legislation.

Taxation in Hong Kong

The corporate tax rate for the first HK $ 2 million is 8.25%, for the remainder it is 16.5%.

Dividend tax – 0%. Therefore, registering a company in Hong Kong will not be burdensome for business. In addition, Hong Kong has agreements on the avoidance of double taxation signed with a number of states (for example, China, Russia).

Property rental income tax is mandatory for all owners of residential and commercial premises in Hong Kong. The rate is 15% of the taxable base (income minus 20% for maintenance).

It should also be noted that most taxes (VAT, inheritance, etc.) are completely absent. This speaks of loyalty and literal business encouragement from the regional government.

It should be noted that all Hong Kong companies are required to maintain accounting records, undergo audits and file reports with the local tax office. English is the 2nd official language in Hong Kong, so all records can be kept in it.

What do you think about registering your company abroad? Share your opinion in the comments below! I will be happy to answer any questions or submit your project to my team at Astorts Group for evaluation. Astorts Group will provide expert knowledge and provide comprehensive support for starting your business.

Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.

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