Hong Kong welcomes hundreds of visitors each year who are looking for a fun vacation, but the city is more than just a happy place to visit.
Thousands of businesses are registered there each year because it is a popular option for businesses looking to grow internationally and take advantage of the booming Hong Kong market.
The city attracts people who are looking for a different place to develop their businesses for operational and investment objectives, including individuals, startups, established enterprises, and multinationals.
International commerce and investment from foreign businesses and individuals are vital to its economy.
Notably, throughout time, the database of international businesses with regional offices in Hong Kong has grown considerably. There are still more businesses looking to register affiliate or subsidiary corporations in Hong Kong.
You may be asking why businesses are drawn to Hong Kong and whether the city is truly worth the hype. The city has unquestionably established a reputation as a global business center among corporate investors.
How Business Registration Services Impact Startups
The Hong Kong Business Registration Fee Changes (2024-2025) state that the BR fee has gone up by 10% from prior years to HK$2,200 each year. Even while this might seem like a small change, every dollar matters to entrepreneurs with limited funding. The government has provided financial relief by canceling the HK$150 tax for the Protection of Wages on Insolvency Fund for two years.
Startups across the world may find it difficult to manage the business registration process, which includes filing required papers, paying fees on time, and assuring compliance with the Inland Revenue Department’s regulations. Noncompliance might result in fines of up to HK$5,000 and perhaps jail time.
In this instance, solutions like Boom HK are useful because they provide personalized business registration services that allow business owners to stay compliant without causing trouble.
Key Reasons to Consider Hong Kong for Your Business Registration
Simple Tax System
Taxation is another motivation for registering businesses in many countries. Lower tax rates result in more profit for the company, and most businesses are looking for ways to increase profits.
Entrepreneurs and investors regard Hong Kong as a tax haven, and its straightforward tax regime draws a large number of businesses.
The corporation tax rate is relatively low, capped at 16.5%, which is far lower than what is available in most other countries.
Companies registered in Hong Kong do not pay dividend taxes, allowing overseas investors to maximize their gains. Companies in Hong Kong are also exempt from sales, consumption, and value-added taxes.
There are no withholding taxes, capital gains taxes, or estate duties in Hong Kong. Furthermore, only a few commodities are subject to import tariffs.
Investment Friendly Laws and Policies
Companies are constantly on the search for countries with laws and policies in place to safeguard their interests.
Hong Kong has a favorable regulatory environment for investors. The Hong Kong government has implemented various investment-friendly policies and rules for startups and businesses.
For example, Hong Kong’s regulations allow a foreigner to be the sole shareholder of a company and designate foreign directors to the company’s board of directors without penalty. As a result, a foreign business can be incorporated in Hong Kong without naming Hong Kong people as directors or co-founders.
The only criterion is that the company secretary be a Hong Kong resident or a TCSP-licensed corporation.
Some laws protect innovation and intellectual rights, and Hong Kong has an Intellectual Property Department tasked with safeguarding intellectual property rights.
Finally, there are no limits on property rights in Hong Kong, allowing foreigners to purchase and rent properties without difficulty.
Easy Access to Other Global Market
Location plays a critical role in business success, and organizations frequently prepare to relocate to areas with superior growth potential, more resources, and a ready market. Hong Kong’s proximity to Mainland China and Asia has attracted many businesses.
Hong Kong’s strategic location makes it suitable for enterprises looking to tap into available resources in China and Asia. As a result, the region attracts a large number of trading companies and professional firms that provide trading-related services.
Companies also take advantage of the simple Hong Kong company creation process to establish digital businesses. They may manage the company’s operations from anywhere in the world while using the Asian market and talent pool.
Top Notch Banking Services
He enjoys not only a free economy, but also the necessary banking infrastructure to support it. Some Fortune 500 banks are headquartered in the city, providing specialized banking services to Asian businesses.
The region’s superior banking services have evolved in response to the demand for flexible financial services. For example, your Hong Kong corporation can open and operate a multi-currency account, just as many foreign companies do. This makes it simple for businesses to receive and send payments in common currencies such as US dollars, British pounds, Australian dollars, Euros, and Chinese yuan.
Additionally, corporations spend less on foreign conversion expenses.
State of Art Facilities and Amenities
The provision of fundamental resources, facilities, and amenities is critical for any firm to succeed in any setting. Companies planning to migrate or expand to a new location frequently assess the available resources. They are interested in establishing businesses in locations that provide the necessary amenities.
Fortunately, Hong has excellent examples that make business operations simple and cost-effective. The country has world-class transportation infrastructure. The famed Hong International Airport (HKIA) handles thousands of goods and flights to over 180 destinations worldwide.
This, along with economical local taxis for city travel, results in a seamless transportation network. There are also well-built office buildings for organizations who prefer to operate from a physical location.