Opening a Hong Kong, limited company may be the simplest and most easy approach to starting your own business. However, given the present unforeseen global circumstances, some entrepreneurs may wonder: Is currently a good time to establish a firm (in HKH.K.)? Should I just cancel everything?
Although the COVID-19 outbreak may have thrown a wrench in your plans, as the old saying goes, “crisis produces opportunity,” and there are several reasons why HKH.K. is still a preferred commercial hub at the moment. For example, the Hong Kong government has boosted small and medium-sized businesses by lowering numerous administrative costs and providing huge tax benefits to alleviate the strain on startups and SMBs.
In addition, the most stress-free remote regime of Company Registration in Hong Kong and compliance among many nations in the globe, as well as instant online multi-currency accounts, are well-developed and accessible for you at a very low cost. We believe that this is an excellent time to establish your first HKH.K. Company.
Here are the top three trendy measures that can help any HKH.K. firm right now. Take a look and determine if they are valuable to you before these bonuses expire.
‘0’ Fees for Business Registration:
The Business Registration Cost is an administrative fee that must be paid when a business entity obtains a valid Business Registration Certificate (BRB.R.) to operate in Hong Kong. Each certificate typically has an annual fee of HK$2,000. Between 1 April 2020 and 31 March 2021, the government will reduce this tax to ‘0,’ which will apply to all incorporated and individual entities.
‘0’ Annual Return Fees for a Company for Two Years
Another administrative expense associated with renewing an HKH.K. limited company’s Certificate of Incorporation is the Annual Return Fee. Every year, businesses must file an Annual Return and pay the cost by their anniversary date. The government has now waived this payment for two consecutive fiscal years, which formerly cost HK$105 each year.
100% Tax Breaks for Businesses and Individuals
The government seeks to lower the burden of Earnings Tax and Salaries Tax on Hong Kong taxpayers, despite the fact that the Profits Tax rate is already rather low at 8.25 percent on assessable profits up to $2,000,000. For the assessment year 2019/20 (from 1 April 2019 to 31 March 2020), each instance of Profits Tax, Salaries Tax, and “Tax under Personal Assessment” is eligible for a maximum HK$20,000 tax reduction.
For example, an HKH.K. business and its lone director can benefit from two sets of tax breaks since the firm’s, and director’s revenues fall under two tax categories: Profits Tax and Salaries Tax. Each tax reduction case has a HK$20,000 cap.
Honorable Mention: Open an HKH.K. Company and a Banking Account Online
With the current circumstances, your well-being is always our first focus, especially when social isolation and travel limitations are in effect. And to get this going, you may use Stephen M.S Lai & Co CPA Limited remote assistance to register your HKH.K. Company and open a banking account without having to travel to HKH.K.
Despite the fact where you are, simply contact us and have our free Zoom video assessment of hearing our rapid advice and clear all your incorporation issues, and if everything seems fine to you, there is no need to visit the HKH.K. Government office to get your registration paperwork done since Stephen M.S Lai & Co CPA Limited can handle all procedures remotely for you, and a multi-currency account can also be created in hours for your company operations right away.
Concerned about creating a bank account? We completely understand. However, it is no longer a bother for Hong Kong enterprises since bank-alike FinTechs like Airwallex, Currenxie, Neat, Statrys, Payoneer, or WorldFirst are ready to assist you with a one-stop multi-currency account solution.
These systems can allow you to open your firm’s accounts through your smartphone screen in days rather than months, and you can also manage your money quickly once your company is founded using their mobile applications or web portals. Additionally, at whatever level of your organization’s development, their entire online business processes avoid any chance of physical touch with any local workers.
After much uncertainty, it’s time to take a more optimistic stance and take advantage of market concessions to keep your ship afloat. Every company step may still be under your control at your fingertips by employing the newest technology and smart tools, making your life much easier.
Send us an email if you have any queries about incorporation or bank accounts, and our experienced in-house professionals will respond quickly. You may also schedule a remote video evaluation now to receive our free face-to-face consultation.