Many entrepreneurs say that opening and operating an offshore business is a good idea, but choosing where is another matter. Offshore businesses offer reduced taxes, reporting requirements and audit risk that many businesses find beneficial. Many countries worldwide offer this, but if you’re planning to open one around Asia, then Hong Kong is among the best choices.
Here are some reasons why:
World-class Country for Investment
Hong Kong is the world’s freest economy. It has maintained a high rating for 20 consecutive years, according to the 2014 Index of Economic Freedom. Even with this kind of record, it still finds room for improvement in terms of government size and regulatory efficiency. It’s among the least corrupt countries in the world, ranking higher than the United States, Germany and Japan. It also has a good strategic location, as it’s the gateway to Mainland China and other neighbouring countries in Asia.
No Tax for International Transactions
If you’re going to do business within Hong Kong, you’ll have to pay a flat rate of 16.5% worth of tax. By forming an offshore company, you can start operations immediately, while getting rid of most or all of your tax charges. A small percentage of savings can already help the business grow further, as you allot a bigger budget for your projects.
Foreign Ownership Benefits
Foreign entrepreneurs and investors can own 100% of any Hong Kong company and become its sole director and shareholder. Hong Kong doesn’t have restrictions on any nationality, so you can start operations regardless of your country of origin. Resident requirements aren’t strict either, which is beneficial because you won’t always be physically present in your offshore company.
If you’re planning to start an offshore company incorporation, you’ll never go wrong with choosing Hong Kong. Find a reliable consultancy company to help you with the legal processes.