HONG KONG COMPANY FORMATION + STARTING A BUSINESS IN CHINA
- Starting a business in China is pretty easy, with having first a Hong Kong Company Formation, since Hong Kong is the world’s 10th largest trading economy and 11th largest exporter of commercial services.
- Foreign direct investment (FDI) is very active in Hong Kong. Hong Kong is the second largest source of FDI in Asia after Japan.
- Hong Kong is the key entrepôt of China. Approximately 54 percent of Hong Kong’s re-exports are to China, so having a Hong Kong company formation if you are interested in exporting to China can be ideal.
- The Hong Kong government encourages its enterprises for starting business in China market with emphasis on promoting Hong Kong’s role as an offshore RMB business center, and therefore making the Hong Kong company formation process a super easy, un-expensive, smooth paperwork.
- As for industrial development, the Hong Kong government set up the Financial Services Development Council to promote Hong Kong’s financial services industry and complement the internationalization of RMB and Mainland China’s financial market.
- Hong Kong has become a conduit to funnel capital, high-caliber talent, and technology into China from all over the world, while also introducing China’s enterprises, products, and services to the global market.
- Hong Kong is the largest foreign direct investment source in China. More than 3,752 regional eadquarters and regional offices in Hong Kong representing their parent companies located outside Hong Kong, 81 percent were responsible for starting business in China, confirming Hong Kong’s role as a gateway to China, and so the reason that in recent years Hong Kong company formation is booming.
- Hong Kong has a robust legal system and an independent judiciary that provide a fair and just operating environment for businesses.
- Availability of quality legal services is an important factor for corporations to establish in Hong Kong.
- Hong Kong has a sophisticated legal services are provided for fund-raising, finance, securities, international trade, and cross-border transactions.
- With sophisticated legal expertise, internationally recognized regulatory standards, an independent judiciary, and an effective alternative dispute resolution system, Hong Kong is truly a one-stop hub in Asia that provides efficient and wide-ranging services that meet the needs of different kinds of businesses at different stages of development.
- Hong Kong enjoys a unique advantage under the Mainland–Hong Kong Closer Economic Partnership Arrangement (CEPA)
- CEPA plays an important role in strengthening cooperation between Hong Kong and China in areas of finance, trade, and investment facilitation and in promoting joint prosperity and development of the two entities.
- All products “made in Hong Kong” complying with CEPA origin rules and upon application by local manufacturers, except for a few prohibited articles, can be exported to China tariff-free under CEPA.
- Chinese and English are both official languages in Hong Kong and are commonly used in business. So this language advantage makes it much more easier to go get yourself starting business with China, instead of going directly to China and getting across with Chinese Mandarin.
- Hong Kong’s geographical location has made it the central hub of the Asia-Pacific region. It is within easy flying distance of China, Southeast Asia, India, and Australia.
- Hong Kong is the world’s third-busiest container port system.
- Hong Kong International Airport is the world’s busiest cargo gateway and two additional runways are planned to increase its capacity by 2020.
- As an important banking and financial center in the Asia-Pacific region, 70 of the world’s top 100 banks are based in Hong Kong.
- Hong Kong provides foreign investors freedom of investment, as the restriction and limitation control by the Hong Kong government is minimal.
In brief, we have set out the advantages Hong Kong company formation as a base for starting business in China , since Hong Kong simple tax regime, leading capital market and financial center, a regional hub, quality manpower, proximity to China, an efficient government, free trade and a free market economy, global connections, and super efficient logistic center with efficient transportation.
Hong Kong Company Formation…a must when coming to do Business with China and the world.