Why Hong Kong? Introduction of Hong Kong for doing business

Hong Kong is a gateway to business success because it is an independent territory with major capitalist services economic integration and ranks at four on the global financial centers’ index. Its financial services are characterized by free trade and a low tax system.

Hong Kong government statistics show that Hong Kong is the world’s 10th largest exporter and 9th largest importer. According to international settlements in 2013, Hong Kong is ranked the 5th largest foreign exchange market.

It is the home to economic and financial services. It is also a gateway to China, the world’s most significant economic hub, which also accesses foreign investors to international trading. It is considered the most ranked trading country with the 8th ranked currency in the world. The Hong Kong dollar is ranked at the 8th position in the world.

Now you must be relieved to hear about such an excellent region in china to create a private limited company. The facts mentioned above and figures about Hong Kong can help you sustain trust in trading. But our customer’s need is our priority, so we won’t recommend you decide here. However, below you will find out the market challenges, opportunities, challenges, and strategies to run a business in Hong Kong. So decide accordingly!

Reasons for doing business in Hong Kong

If you want to start a business in the Asia Pacific region or be Hong Kong’s largest trading partner, you need to know why Hong Kong is the best to run a business and the trend of the trading market. Here are the reasons and overview of the trading market in Hong Kong.

• Hong Kong is a globally accepted city for setting up a business. To run a company in Hong Kong is super easy and quick. You can register it online without a physical presence. And the most interesting fact is there are no nationality restrictions and no foreign exchange controls. Company registration costs are affordable, and you can open your company even if you are a foreigner and higher a high degree company secretary to ensure the company’s success.
• The type of private limited company in Hong Kong is formed for small to medium-sized trading. You can be an incorporator at the companies’ registry with the share capital. There are no restrictions for shareholders; they can be foreigners.
• A private limited company is a CEPA qualified company that can take advantage of all the tax benefits. So why not corporate a company in Hong Kong.
• Low simple and friendly tax rate system urges foreign investors to trade in Hong Kong. There are mainly three types of taxes, profits tax, salaries tax, and property tax. And the Hong Kong market follows a profits tax regime. Business people enjoy the friendly tax system of the Hong Kong market. Investors enjoy no sales tax, withholding tax, capital gains tax, or inheritance tax; however, they have three direct taxes with allowances.
• The highly developed free-market economy of Hong Kong is a key for investors to trade which facilitates the investors with low taxation and provides almost free port trade.
• tariffs free system has its value in the business market, and Hong Kong’s market provides you no tariff system on imported goods

Hong Kong is the source of foreign direct investment in the People’s Republic of china as statistics show that it acts as the largest source to attract foreign investment.

General overview of trading market in Hong Kong;

Hong Kong is the best globally considered market. Before setting up a business there, proper market guidance can help you avoid negligence. Below is the overview of the trading market in Hong Kong; how can you get enter the market? What are the challenges to face and the strategies to cover them?

Entry into the market;

First, you need to select the type of company you want to direct and then a bank account for the company. To grow the sales faster, you can get help from agents. The agents can increase the sales of U.S. products up to a higher level in mainland China and Hong Kong. Hence, the best strategy is to work with different agents for different regional offices of mainland china.

Opportunities

Hong Kong provides Excellent prospects for U.S. suppliers. The trendy export sectors can boost the sales level. So you must consider choosing from

• Electronic components
• Transportation infrastructure
• Medical equipment
• Pharmaceuticals, aviation,
• Airport equipment
• Security equipment
• Retail and consumer goods like packaged food, wine, beauty products, etc.

Market Challenges;

Mainland China is Hong Kong’s largest partner. That is why Closer Economic Partnership Arrangement (CEPA) offers international access to Hong Kong’s products. The main market challenge that business people face is the increasing competition from mainland China. Mainland rivals are becoming more competitors in every sector. So, while stepping into the market, the investor has to face competitors from mainland china.

Frequently Asked Questions

When it comes to business, what does Hong Kong have to offer?

In terms of economic competitiveness, Hong Kong ranks among the world’s best. Due to its own currency, legal framework, and taxation system, it is a magnet for global business. It is a long-standing bridge to mainland China and a rare blend of East and West, with significant trade and investment flowing in both directions.

What makes Hong Kong a good business place?

Hong Kong’s success can be attributed to its location, trustworthy political and economic environment, business-friendly tax and business approach, world-class infrastructure, and productive legal system.

How is a business in Hong Kong?

The business climate in Hong Kong is one of the best in the world. Hong Kong ranked fourth globally in ease of doing business in the World Bank’s Doing Business 2019 Report. Hong Kong ranked fifth out of 190 economies in terms of ease of starting a business.

Does Hong Kong still offer good business opportunities?

In contrast to Shanghai and Shenzhen, experts argue that Hong Kong will likely become the center of a Chinese-led global economic empire rather than just another Chinese city.

In Hong Kong, what are the most important businesses?

Hong Kong’s economy is dominated by four key industries: financial services, trading and logistics, tourism, and producer and professional services. They drive economic growth in Hong Kong, providing impetus to other sectors and creating jobs.

Conclusion;

To invest at an exceptional place has always been the top priority of every business person. The facts mentioned above and figures about Hong Kong city and its financial supremacy show that Hong Kong is above all to set up a business. So if you want to set up the business, look into the type of companies in Hong Kong, and select the one according to your interests. Hopefully, this article will help you find an exceptionally resilient place for your businesses setup.