They are opening a business in Hong Kong as a foreign national pose a particular challenge. That is why most entrepreneurs prefer to open their businesses in China first before moving to Hong Kong. And even after they have established their business line in China, they still want to add more benefits to doing business in the territory.
The most obvious benefit of opening a business in Hong Kong as a foreign is the comparatively low cost of doing business in the Chinese territory. Hong Kong has a competitive advantage over other Chinese cities because it is a few places with free access to the open trade agreement with China. It can facilitate trade without needing to open any bank account or get licensing and registration documents. Thus, it is easier for foreign people to establish a company without worrying about these issues. Besides free access to the market, another benefit of company formation in Hong Kong is the absence of a cumbersome tax system. There is no equivalent of the English tax system in the Chinese territory, making the legal system simpler and more straightforward for all parties concerned.
opening a business in Hong Kong as a foreign national also allows you to open a business in a country with which you are familiar and have established good relations. It gives you the additional advantage of gaining insights into the working mechanisms of the country’s economy. Knowing the Chinese business system’s essential workings will help your endeavour to expand your business overseas. You can use this knowledge to serve as your primary weapon when negotiating with government officials during your operations in the country.
Moreover, there are many business opportunities in China and Hong Kong that are not accessible everywhere else in the world. These include retail business opportunities in China and the electronic trading business in Hong Kong. You might have problems opening a Hong Kong company due to the government’s restrictive commercial policies on foreign establishments. However, you can still find a few options for your business, such as independent shops and family-run restaurants.
Companies can be registered in either China or Hong Kong. The main difference between the two is that to open a business in Hong Kong; you need to have a license from the Chinese SAR government, whereas, in China, you only need a request from the China Exchange. Opening a company formation in China is also more comfortable than Hong Kong, though the process is more time-consuming. Many fake companies in China pose as businesses looking to make easy money through unsuspecting people.
When looking for a suitable company formation company in Hong Kong, you should ensure that the one you choose has been around for a long time. You should also make sure that they have a high success rate. Some illegal company formation agents in the territory take advantage of people’s economic problems. If you want to avoid these shady figures, you should consider asking an independent expert to help you with your business formation options.
Once you have chosen the right company, you can then look for your new business location. Most foreign investors choose to open a business in Hong Kong because the local people speak English as a first language. Furthermore, there is much low-cost access to medical and educational facilities in the territory, making it a popular choice among international entrepreneurs. Many of the world’s leading multinational companies have their head offices in Hong Kong.
You will also have to pay tax on any income you receive from your business. However, this depends on the type of business you set up. It may also depend on the place where your company registration is held. There are many business registers in Hong Kong, including the business register and the business registry. You can research these registers online to get more information on the pros and cons of each type.