Opening A Business in Hong Kong
Reasons for considering opening a business in Hong Kong, which is not often considered in other countries. Ease of opening a business: For years, Hong Kong was a major business center and a favored location for entrepreneurs and start-up businesses. Additionally, Hong Kong also provides excellent benefits to establish and expand a small or medium-sized business, including:
No tax obligations: Many entrepreneurs who consider opening a business in Hong Kong face the daunting task of dealing with taxes. The first thing that should be considered is whether the business will be a sole trader or whether more than one person will operate it. In case the latter is the case, a separate account for taxation purposes should be opened. In case the business is run as an individual or a group, a general business tax number (GBL) is needed to apply for a tax permit. It is advisable to take all these issues into account before opening a business in Hong Kong because these can prove to be quite taxing.
Easy access to capital: One of the best reasons to open a business in Hong Kong is the ease of accessing capital. In individuals’ cases, this is facilitated by having a personal bank account and a savings account. Entrepreneurs can tap the Hong Kong business formation facility to obtain capital loans. Once a business has achieved its success, the second stream of funds may be available. The Hong Kong business establishment facility, can obtain business finance from international business people.
Better legal aid: Many entrepreneurs who decide to open a business in Hong Kong face the problem of getting the necessary legal guidance and help. This problem is especially common in foreign businesspeople since there is no local lawyer or legal expert to aid them. However, since numerous legal firms and professional organizations are based in Hong Kong, their problems are less complicated and can be solved quickly.
Low cost of business registration services: It is advisable to take advantage of the low cost of registration services in Hong Kong when looking to open a business in this city. It enables an entrepreneur to open a business in Hong Kong without facing problems such as excessive paperwork and the need for expensive lawyers to help them in cases of disagreements with local authorities. Another good reason to consider is that it enables an entrepreneur to establish a business where there are no real estate and leasehold taxes.
No need for investment in business insurance and taxation: Since most Hong Kong companies are self-employed, no need for business insurance is provided by the government. Also, the amount of business taxes levied on the business is relatively low compared to those of other types of businesses.
Low minimum wage: Unlike many other cities globally, there are no employment benefits, no pension schemes, and no need for business taxation when starting up a business in Hong Kong. It makes it easier for a newcomer to get started and establish a business. The absence of these benefits reduces costs and increases the competitiveness of starting a new Hong Kong venture.
Thus, opening a business in Hong Kong can be a very profitable decision. However, these benefits are not always easy to come by. Entrepreneurs should be aware that starting a business in the city requires time, energy, and money.
Opening A Business in Hong Kong