Registration of a startup in Hong Kong in 2019
Hong Kong is a special administrative region, one of the leading financial centers in Asia. The economy in the jurisdiction is based on the free market, tax rates are relatively low, the state does not intervene in the economy. Hong Kong is an offshore territory.
Jurisdiction is one of the first in terms of ease of doing business. The area has a complex and well-developed transportation system, good infrastructure, and many businessmen are striving to develop a startup in this jurisdiction.
Benefits of registering in Hong Kong
Registration of a startup abroad is promising. For these purposes, many entrepreneurs choose Hong Kong, as the area has various advantages.
The main advantages of registering a startup in Hong Kong:
• Legislation conducive to doing business;
• Low tax rates;
• The prospect of entering the international market;
• The ability to attract large investors.
The official languages in the area are Chinese and English. You can open a startup in Hong Kong, since non-residents can own an organization in a jurisdiction.
In addition, there are no restrictions on the currency and the size of the authorized capital. Virtually no restrictions on mergers and acquisitions. If profits were obtained outside the jurisdiction, they are exempt from taxes.
Registration of the organization in a special area can be performed remotely, while the personal presence of the owners is not necessary. Jurisdiction is considered one of the largest centers of world trade in Asia and the world, is included in the list of APEC members.
The area has a favorable geographical position. You can access the Asian market, including the Chinese market. The average age of people developing a startup in this area is about 30 years. Here are the youngest founders of ideas and projects.
Taxation and startup choice
If you make a profit in the territory, the tax rate will be 16.5% of the profit, but if you receive income abroad you can free yourself from taxation by payments.
At the same time, it is possible to deduct some expenses from income when drawing up a taxable base. Such deductions include the costs of market research, office rent, the amount of wages that are paid to employees, insurance services, payments to the PF, repair of equipment used in activities to generate income, depreciation, etc.
One of the most promising areas for creating a startup in a jurisdiction is fintech. Especially in demand are software products and technologies that can improve and accelerate the implementation of financial procedures. Projects related to alternative methods of generating electricity are also in demand. A large share of investments is directed towards the development of healthcare. Actual development of startups in the field of logistics.
If the projects are interesting for the Hong Kong economy, there is a chance to get a startup visa. At the same time, it is necessary to prove the prospects and the subsequent benefit from the development of the idea. To do this, submit a business plan, recommendations. For more information regarding obtaining a visa and developing a company in Hong Kong, contact our specialists at IT-OFFSHORE.