Sequence for new business in Hong Kong

[KorioJames]

Opening a bank account

Opening a bank account in Hong Kong can be complicated for a foreign company and this is unfortunate as it is a key aspect of doing business in the country, especially for a business is in its infancy. Reasons behind the complications include producing less or no profit, having no physical presence in Hong Kong, companies of foreign nationals, complex ownership structures, and lack of financial history for new businesses. Ways around this could be using an offshore bank, which means having a bank account in another location such as a low tax jurisdiction outside the country.

Budget 

Hong Kong is working to enhance its competitive edge and maintain its economic sustainability. The advantageous budget changes for both corporates and individuals, with a particular focus on supporting innovation and developing the financial services industry, make Hong Kong an attractive place to work and invest.

Tax requirements in Hong Kong

Hong Kong has aligned its tax policy with its goal to become one of the most tax friendly environments in the world. It has just three direct taxes, capped at between 15% and 16.5%, with further allowances and deductions possible. This, and the lack of VAT, sales, dividends, estate, capital gains and withholding tax, is why Hong Kong has emerged as one of the preferred locations for global entrepreneurs. The jurisdiction has also made submitting tax returns a straightforward process. However, given the vast number of tax incentives implemented in recent years, having local support is essential to maximise tax benefits.

Customs and excise duty

Hong Kong is known for its easy customs procedures and free port status, both when importing or exporting, with duty excised on very few products. Duty is paid on liquors and tobacco, for example, but in the last few years, duty was dropped for the import of wine and beer, encouraging a thriving wine import, export and storage business.

[Linette]

Hey! You showed me a lot of interesting possibilities.. But is it so easy to get this for a regular non-resident? I encountered such a problem, so I advise you to create company in hong kong with the help of specialists. So you will avoid stupid mistakes at the initial stage and reduce the time of paperwork.