Hong Kong is the best place to set-up a business. According to the Index of Economic Freedom, the Special Administrative Region of China ranks first among the freest economy in the world. This means the city provides the friendliest environment for enterprises, both big and small, to grow. The pro-business state continues to maintain its reputation as the leading financial center,attracting foreign investors.
How is Hong Kong doing this? Here are a few reasons the autonomous territory is the prime destination of international investors worldwide:
Free Trade Agreements
Hong Kong embraces the free market condition, and implements free trade agreements continuously. This policy doesn’t apply tariffs on imports or subsidies on exports, thus, providing trading partners mutual gains from the trade. Free trade promotes economic development among different nations, as companies may conduct business free from certain taxation policies or import constraints.
Individual economies can participate in the global market. The more businesses can join the market, the tighter the competition gets. This reduces the pressure on prices of goods and services. With this setting, the success of every company greatly depends on their ability to keep up with the production technology of others.
The state is also a tax haven. The low tax jurisdiction in Hong Kong distinguishes it from other nations. The government continues to simplify their tax provisions to make things easier for businesses. In addition, Hong Kong is the best place to form an offshore company, as corporations can save a significant amount on different taxes.
Gateway to Mainland China
Hong Kong benefits the most in the China’s massive economic growth. The city is Mainland China’s top trading partner, so companies based in Hong Kong can gain easier access to world’s second-strongest economic power.This provides them with more potential for business growth.
Hong Kong sets the most ideal environment for trade and global business growth. The state has no currency exchange control. It also protects the banking confidentiality of its investors and respects the rule of law with an independent legal system.Look for a consultancy firm providing assistance in offshore company incorporation to establish a company in Hong Kong.