Asia company formation
Hong Kong the best place to be incorporated.
Increasing confidentiality and minimising taxes are not the only advantages of establishing a limited company in Asia. Even though tax effectiveness is the principal benefit that comes to mind when a person considers a company formation, the opportunities in Asia to significantly reduce business overheads and exposure to expansion is also a major benefit.
Asia company formation opportunities are open in the following countries:
- Hong Kong
- Marshall Islands
- The Republic of India
- The United Arab Emirates
Other than that, you get a lot of opportunities in the Asia company formation such as the lower capital requirement, lower setup and maintenance costs, asset protection, and reduced administration. And the best place to start the business is Hong Kong.
Hong Kong is a SAR, also known as Special Administrative Region of the PRC, is within the People’s Republic of China. But Hong Kong is a separate jurisdiction where its laws are different from China as it follows the British system, where there is a greater amount of freedom and the tax laws are much simpler and straightforward. This attracts international companies to Hong Kong, for example Google and Facebook, whereas these are restricted in Mainland China. Hong Kong aims to attract businesses from all over the world, especially the development of the SMEs, also known as Small and Medium Enterprises.
That is why, if any person wishes to launch a business in Asia, the initial location to register the company, and the most comfortable place from which you can manage it is Hong Kong. Its well-developed commercial network that has a mature system for e-registration and incorporation is an international leader.
A person can obtain numerous advantages of a Hong Kong company by incorporating with the following businesses:
- Holding intellectual property(trademark)
- Real estate ownership
- As a holding company
- Any kind of international business
Why set up Hong Kong company – International Trade?
Being one of the wealthiest regions in the world, Hong Kong is also the largest business center in Asia and gateway for other Asian countries. Along with this, it is also a famous spot for any foreign investor to open their company and perform international operations.
There is no doubt that the most vital economic activity in Hong Kong is the international trade. So, for the best Asia company formation, Hong Kong company has the most opportunities in Asia where you can efficiently manage all operations from.
Here are main the reasons to own a Hong Kong company that allows a person to gain multiple opportunities in Asia:
#1 Tax System
The efficient tax regime of Hong Kong creates a business-friendly environment, which drives in a lot of economic growth.
- No tax on dividends
- No GST or VAT.
- No capital gains tax
- No withholding tax
The corporation income tax rate is only 16.5%, which is one of the lowest amounts in the world. Other than this, the ease of filing the tax return is a significant advantage of a Hong Kong company. With a straightforward and simple process, it can be done online where many can efficiently complete and submit the tax returns on their own.
#2 Ease of Company Incorporation
If a person wants to open a company in Hong Kong, there is no need for the person to be a Hong Kong citizen, any nationality is accepted. The person can easily get the form filled online and have their company set up in 24 hours. This would include the incorporation and the low annual maintenance cost.
#3 Free Trade Port
Hong Kong has straightforward customs procedures and is known for its free port status. Duty fees are paid only for some a few specific products.
#4 Legal framework
Hong Kong has a common law legal system that is based on the common-law systems of England and Wales. Its legal practice is perfect for protecting and enforcing constitutional rights and commitments stemming from business contracts.
Advantages for setting up a Hong Kong company
A lot of investors are choosing to set up their business overseas. They usually opt for Asia company formation with Hong Kong being the most popular jurisdiction. Most of the reasons are the trend to find a way to enter the Asian market and explore the opportunities across the continent.
Along with this, they also want to benefit from the Hong Kong tax-friendly jurisdiction, the world-class infrastructure, and the productive legal system. Hong Kong is a great place to start a business, and that is why you need to know the advantage of a Hong Kong company.
Find the advantage of a Hong Kong company explained below in brief:
- The Asia company formation in Hong Kong is straightforward and inexpensive.
- A foreigner can own 100% of the company and can be the sole shareholder and director of the company, which is the best advantage of a Hong Kong company. There aren’t any requirements where the person has to be a resident of Hong Kong or of a specific nationality.
- Compared to the surrounding countries, Hong Kong offers stability and worldwide recognition.
- The English common law is relevant in Hong Kong and the legal system is very different as that of the Mainland China.
- For those who want to do business in China, Hong Kong is the best gateway for any Western country which is a great advantage of a Hong Kong company.
- There isn’t any need for a physical address for the Hong Kong company where a registered address is adequate.
- The best advantage of a Hong Kong company is that they are permitted to open a multi-current bank account for the business.
- Hong Kong follows the territorial source principle of taxation, which means that any profit made out of Hong Kong would be tax-free. The revenue produced inside Hong Kong and for an income tax over 120,000 HKD is around 16.5%.
- In banking and business, Hong Kong is known as the global leader where it has held a record for 17 years continuously in a row as the freest economy in the world.
- Hong Kong holds the distinction of being one of the least corrupt countries in the world, as it ranks ahead of the countries like the USA, Germany, Japan and the UK.
- Having a world-class business infrastructure, it is the best place to run a business without any issues, making it a significant advantage of a Hong Kong company.
- One of the two main languages in Hong Kong is English, where Cantonese is the other one, making it easier to communicate with people there like the agencies who would help you to incorporate the Hong Kong company.
- The Hong Kong government offers incubator programs, loan guarantees, and marketing fund for the startups so that people can open business more in Hong Kong.
- Compared to the other countries, Hong Kong allows you to sell your corporate shares easily.
Fast and Easy registration procedure
The Asia company formation in Hong Kong is straightforward where all you need to do is contact an agency like Startupr and provide your business ideas, identities and business name for them to being the process of forming your company here. From the filling of the form to the bank account opening, Startupr would take care of each and everything if hired for it.
So, instead of navigating a complicated foreign process, with frustrating misunderstandings or delays, a person becomes free to focus on running their company. Also, the staff at Startupr are fluent in English so there won’t be any communication issues, making the overall process smoother.
If a person wants to do this themselves, they can find the company’s name online, and fill out the form to the Companies Registry and courier the documents after the business has been formed. But the person would still need a company secretary and a local registered address for the office. So, it is better to hire Startupr to handle all these things for you.
The Fast Incorporation Service
It’s also possible to have an expedited incorporation in Hong Kong in under 24 hours, for those on a time constraint or tight schedules. However you would need to provide the necessary documents and know the process well for everything to go smoothly. Instead of encountering delays due to an error, let Startupr help you out. Here are the fast incorporation services that Startupr offers:
- In case your order and payment gets to Startupr before 10 A.M. as per the +8 Greenwich Mean Time, which is Hong Kong’s time, the process of filling the application then takes normally takes about few hours.
- The SameDay system at Startupr helps you enjoy round-the-clock access to the Hong Kong government Companies Registry (CR) office where we submit the application directly via our own channel.
- It takes about half day for the CR to approve and issue the electronic issuance of your company documents after the application has been submitted.
- After the process and the Hong Kong company formation has been completed, Startupr would get the official documents of the company via email, the send you a set of company documents afterward. Where you can then start your business after this.
- Other than these points, it is easy and fast to incorporate a company since the complete process is online and it is an excellent advantage of a Hong Kong company where you can begin exploring the various opportunities in Asia.
Low & Simple Tax System
As mentioned above in the advantages, the tax system is very friendly in Hong Kong and attracts many customers to start their companies there. The tax benefits are significant as it affects the business’ competitiveness, job creation, as well as the health of the economy of the country.
The corporate income tax is only 16.5% in Hong Kong, while the employer and employee tax is only 15%. Other than this, the Dividend and the VAT tax along with any others is 0% in Hong Kong which is an incredible advantage for Hong Kong companies.
Moreover, there is a 0% of the Income Tax if the income comes from outside Hong Kong. But for this profits exemption, you would have to submit the PTR and financial statements as well as file the offshore exemption claim. We suggest to consult a professional accountant who are well versed on the accounting rules and profits exemptions in Hong Kong.
After the request has been made to IRD, they would review and analyze everything to issue the offshore tax exemption which is then valid for approximately five years for the offshore profits only. This is the best advantage of a Hong Kong company giving a person significant opportunities in Asia to earn a lot and pay fewer taxes for it.
Take the help of Startupr to begin an Asian company formation today and explore the opportunities in Asia!