Have you ever considered about setting up company in Hong Kong? If you have the opportunity to do this, do not let it pass. Overseas businesses are showing a lot of potential and investors are setting up more companies overseas. Hong Kong is one spot where many investors continue to show interest in, and that may be because of the benefits that Hong Kong provides.
Benefits of Hong Kong Corporations
- Getting A Hong Kong Corporation Is Cheaper And Easier Compared To Other Places
Starting and growing business needs one to have enough cash and capital. When you think about starting a company overseas, you are likely to imagine that it is difficult and involving and more expensive than setting up a company in your current location. This might be true for other cities because for Hong Kong it is cheap and easy. You will not have to undergo a lot of strain. You can get your company set up in a few weeks and using a little amount of cash especially if you go through a firm like Jumpstart.
The other few requirements you will need to get started is a phone number and an address. It is easy to find companies that provide these kinds of services for you in Hong Kong. The most you will spend is when you fly to Hong Kong from your current location to open up a bank account in the city. You need to be there in person to open a bank account. You will take the shortest time possible to complete the setting up company in Hong Kong process. You only need to deposit an initial amount in the account, as is the case with most business accounts. Since you will be new in the area, you will need a place to spend the night. These are available at central Hong Kong, and you will pay $50 bucks per night. If you are from a country in the West, you can use just around 2k to travel, to set up the bank account and to find accommodation in the city. You can also enjoy the new place as a bonus since you are already where.
- In Hong Kong The Corporate Tax Rate Is Zero For Transactions Outside Of Hong Kong
The operations you will carry outside of the city will have zero tax. If you are American, you will still have to pay tax on incomes that you gain from corporations even when they are overseas. Keep track of the amount of income you get from your corporation and ensure that you pay the required tax for that income. Despite this, you will still be lucky to save on corporate and sales tax, as these are not a requirement in Hong Kong.
- You Can Easily Write Off Additional Expenditures Against A Hong Kong Corporation
In Hong Kong, you can write off more expenses as compared to other states and places. You can write off your commute to your business as an expense yet in America you cannot. The other costs you can include are cash that you spend to entertain clients for example when you offer them refreshments. The place you choose to live because it is closer to your business, so you are renting can be among the expense that you write off. Setting up company in Hong Kong in Hong Kong allows you to write off very many things as expenses. It is favorable and advantageous for you since in America the IRS considers these expenses personal. The amount of money that you save monthly because of this translates to thousands annually.
- HK Is A World Recognized Leader In Banking And Business
The idea of Hong Kong is to make the business flourish. Businesses operate in a secure and comfortable banking world in the city. The economy in Hong Kong is rich, and it keeps getting better over time. It is also very rare for you to end up in an IRS blacklist when you operate your business in Hong Kong. It is a flexible area to run a business. You can even transfer and keep your cash in various currencies. Whatever currency your client pays you in is held in the same way in the bank until you instruct them to transfer the currencies.
5.The First Step Towards Globalization
Starting your company in Hong Kong will expose you to many opportunities across the globe. You will interact with many people from all over the world. You will also get into healthy competition with other companies from Asia. You will experience the feel of doing business outside your comfort zone, and you will enjoy the experience since it enlightens you and builds both you and your business in ways you may never have experienced before.
Having your company in this location also means that you have aces to the significant Southeast Asian Destination. You can travel there to enjoy yourself. You are also close to the grates manufacturing base in the world, the pearl delta. Compare Hong Kong with other popular overseas destinations for setting up companies and decide if it is the city for you.