Hong Kong company registration is known as a preferred vehicle for conducting international businesses or cross-border businesses. Therefore, the following information will show you why and how registering a Hong Kong company facilitates the international business.
Benefits of Hong Kong Company Registration
1. Low Corporate Tax Scheme
Hong Kong corporate tax is considered low compared to Malaysia Corporate Tax (25%) or China Corporate Tax (25%). Furthermore, there is only one payable tax for Hong Kong company registration which is the low corporate tax at 16.5%.
2. Facilitate Business Trading
There is little restriction for Hong Kong company registration as long as the business is conducting legally the business coverage has no limit, hence, Hong Kong company registration provides business freedom. Therefore, set up a Hong Kong company is preferable for international trade purpose in terms of transaction, time and cost, etc.
3. International Tax Planning
Many of the importers and exporters faced the same problem which their profit being undercut because of the double taxation scheme. Thus, set up a Hong Kong company they not only can enjoy a low corporate tax at 16.5%, they can also utilize the Hong Kong company to maximize the company profit with deducting the tax.
4. Enhance International Market Share
Hong Kong is a well-known country for business expansion and investment which recognized worldwide. Set up a Hong Kong company leads to company image enhancement, and also, provides a platform to expand business internationally.
5. Facilitate Business Transaction with China’s
China market has got uncountable investors’ attention thus far since it opened its door to foreign investors. However, it is difficult to set up company in China due to its company registration policy, so it’s suggested that set up a Hong Kong company but open bank account in China to facilitate to business transaction.
6. Global Corporate Bank Account Opening
After setting up a Hong Kong company, it’s easy to open a global corporate bank account, so that we can avoid from foreign exchange interest (FOREX) and able to control all the account transaction via internet without local Central Bank involvement.
7. Simple Requirement for Hong Kong Company Registration
It is simple and easy to set up a Hong Kong Company. There is needed only one director, one shareholder, one local secretary, and with an authorized capital of HKD 10,000 but paid-up only HKD 1.
8. Hong Kong Permanent Resident Status
Besides the above mentioned business benefits, Hong Kong company registration can also lead to applying for Hong Kong Permanent Resident (PR) Status. When a foreign owned Hong Kong company has conducted its business in Hong Kong for more than 7 years with economic contribution, the foreigner can apply for Hong Kong PR status more easily.