How to open a startup in Hong Kong
You can open a startup in Hong Kong by contacting our specialists at IT-OFFSHORE. We will help you to collect the necessary documents and answer any questions you may have.
The pros of opening a startup in Hong Kong
Registering a startup in this jurisdiction has several advantages. The legislation is considered favorable for doing business, and the tax regime is attractive.
It is possible to expand the client base and attract investors. The region has an efficient judicial system and no direct access to the company's operations from other countries.
Opening a startup in Hong Kong in 2021 is beneficial, as the official language is English and Chinese. Foreign entrepreneurs can be full owners of the company, and there are no restrictions on the size of the authorized capital.
Taxation rates are quite low. Tariffs on company profits are 16.5%, and there is no value-added tax. Profit, which was not received in Hong Kong, is exempt from paying the tariff. It is possible to open a company remotely, with no required personal presence.
Features of startups opening
Hong Kong's location is favorable for working with clients from Southeast Asian countries. Startupers aged about 30 years old are predominantly working in this jurisdiction. Registration is quite advantageous, as the tax burden has been reduced and part of the profit can be taxed at a rate of 8.25%.
There is an opportunity to get deductions for marketing and market analysis expenses, rent of premises, as well as labor payments to employees. It is possible to get a deduction for a patent, repair work, insurance, and amortization.
It is most profitable to work in Hong Kong in the direction of financial institutions. This is due to the fact that there is a demand for new technologies to accelerate and simplify operations related to finance. Projects in the search for alternative energy sources and innovations in the field of health protection are relevant.
Nuances of registration
The procedure for opening a company is quite simple. It only takes a few days to prepare the documents and review them. What to prepare:
- Founder's passports;
- Identification documents of directors;
- Data with address confirmation.
Private limited liability companies are the most frequently opened. One director and a shareholder is mandatory as well. Legal address required. A company needs to submit reports and keep a register and accounting.
Founders and directors may be non-residents. Owners of projects may get a special visa. It may be difficult to open an account with a bank in Hong Kong, but it is possible if certain conditions are met. The procedure of creating an account for a startup is simplified.
You may open an account with the payment system. In this case, the procedure is faster. Customers are checked in automatic mode, and the remote opening is allowed.