Over 72,000 new registrations in six months! Why entrepreneurs are choosing to register Hong Kong companies?

According to the statistics released by the Hong Kong Companies Registry in mid-July, the total number of newly established Hong Kong local companies in the first half of this year amounted to 72,588, and 422 non-Hong Kong companies have newly set up places of business in Hong Kong and registered under the Companies Ordinance. As at the end of June this year, the total number of non-Hong Kong companies registered in Hong Kong amounted to 14,621.

Hong Kong, the sparkling business jewel with unlimited opportunities and boundless potential, is the first choice of many enterprises and entrepreneurs to expand their business, and the reason why these enterprises choose Hong Kong is mainly attributed to the advantages of Hong Kong's business environment.

01. Wide range of business scope of Hong Kong companies

Hong Kong is one of the freer ports in the world for trade and commerce, and there is not much restriction on the scope of business in principle.

Hong Kong is a relatively free commercial and trading port in the world, and in principle there are not many restrictions on its business scope.

Enterprises can operate businesses of any nature, such as: finance and investment, healthcare, shipping and transportation, import and export trade, real estate, construction, decoration, information networks, clothing and textiles, tourism, colleges, culture and publishing, associations, research institutes and other high-tech industries.

02. Hong Kong companies have fewer tax items and lower taxes

A Hong Kong company basically involves only the following 2 taxes:

①Profits Tax: The tax rate is 8.25% (applicable to the first HK$2 million of profit) and 16.5% (applicable to the portion exceeding HK$2 million), and a Hong Kong company can apply for a complete exemption when it does not have a source of profit;

② Pay Stick Tax: If there is no actual office and employees in Hong Kong, there is no need to pay. Compared with the mainland's corporate income tax rate of 25%, Hong Kong's profits tax rate is relatively low. Moreover, Hong Kong adopts the territorial principle for taxation, and profits not derived from Hong Kong are not subject to tax.

Therefore, it is convenient for enterprises to utilize Hong Kong companies to retain high profits and carry out tax planning legally.

03. Opportunities for the motherland

With the unique advantages of being backed by the Motherland and facing the world, Hong Kong has gradually developed into an international financial, trade and shipping center while providing high value-added services to help the reform and opening up of Mainland China and its integration into the global economy.

The National 14th Five-Year Plan has assigned Hong Kong the mission of building eight major centers, which, together with the unlimited opportunities brought about by the construction of the Guangdong-Hong Kong-Macao Greater Bay Area (the Greater Bay Area), will give Hong Kong a new impetus for economic growth.

04. Freedom of trade/financial access

Hong Kong is the freest and most prosperous trading port in the world with good infrastructure. Hong Kong has not only free flow of people in and out of the territory, but also free flow of goods in and out of the territory, and free flow of capital in and out of the territory.

• Freedom of movement of people in and out of Hong Kong: Hong Kong has visa-free agreements with more than 100 countries and is about to launch a visa-free travel program with the Pearl River Delta;

• Freedom of logistics in and out: no customs duties are levied on the entry and exit of goods, and logistics by land, sea and air are handled very quickly;

• Freedom of funds in and out: Hong Kong does not have foreign exchange control, all kinds of foreign currencies can be exchanged at any time to mobilize, and there is no restriction on the entry and exit of funds.

05. Building an international brand image

Hong Kong is a global financial center, the most competitive city, is conducive to enhancing the corporate image, the establishment of Hong Kong companies are more worthy of being trusted by customers, to develop the global market, but also to register international trademarks, bar codes for international commodity flows.

06. Simple registration and easy maintenance

Registration of Hong Kong companies only need Hong Kong shareholders information, can be quickly registered; Hong Kong company maintenance is very simple, annual audit and a tax return can be done every year, easy to operate and manage the company.

07. High credibility of Hong Kong companies

Hong Kong enjoys an excellent reputation in the global business community. It has a sound legal system, a developed financial market and efficient governmental governance, all of which are very beneficial to a company's reputation and business development.

.08. Flexible corporate structures

Hong Kong allows global investors to set up various types of companies, including private limited liability companies, public limited liability companies, branch offices, joint ventures, etc. to meet different business needs.

09. Application for Hong Kong Identity

After the registration of the Hong Kong company, according to the requirements of the "Admission of Mainland Talents and Professionals Scheme" to re-employ themselves, apply for Hong Kong professionals / talents to achieve Hong Kong permanent resident status.

10. Overseas financing and listing of companies

Hong Kong has a sound banking and financial system, relaxed financing environment, listing conditions are relatively convenient, registration of Hong Kong companies is conducive to enter the overseas market.