Reasons why Hong Kong is preferred as a regional headquarters destination

Hong Kong holds the proud record of having the highest density of regional headquarters for any city in the world. Hong Kong’s stature as a global business hub has been growing rapidly over the past many years and today many companies are looking towards this city for future growth and expansion. Apart from trying to setup a regional headquarters, there are some that believe in the future Hong Kong would start becoming the preferred option for global headquarters as well. Some of the reasons why companies entering the Asian markets prefer Hong Kong as their regional headquarter destination are as follows:

1) Ease of doing business: Hong Kong has one of the most liberal policies when it comes to foreign company setup in the city. Foreigners are allowed 100 per cent shareholding in Hong Kong companies and at the same time, both shareholders and directors can be foreigners. They can reside anywhere in the world and can incorporate a company in Hong Kong within three working days. The company setup procedure is extremely simple and overall Hong Kong features amongst the top 5 nations in the world for ease of doing business. Hong Kong’s infrastructure is second to none and the city’s business environment is conducive to growth.

2) Liberal taxation regime: Hong Kong has the lowest corporate tax rate in entire Asia. Companies pay a maximum tax rate of 16.5 per cent and there are various other tax incentives available that lower the overall tax liabilities of a company operating in Hong Kong.

3) Leading financial center: Being a leading financial center of the world, Hong Kong is home to some of the biggest banks in the world. The exchange control policies are also liberal making it simpler to transfer funds to Hong Kong or withdraw funds from a corporate bank account in the city to any other anywhere in the world. Also any major currency can be used as paid up capital in a Hong Kong Company.

4) Location: Hong Kong is in the heart of Asia. Most important centers of the continent are just a short flight away. Of course the most important advantage for Hong Kong is its proximity to Mainland China. Companies based in Hong Kong can easily cater to the Chinese market as well as other lucrative markets in Asia.

5) Proactive government: Hong Kong has a proactive government that ensures the city always moves forward and creates policies with a long-term vision for the city. Hong Kong’s infrastructure is improving all the time and new policies are being created to ensure companies operating in the city have all support they need to grow and expand to their true potential.

About the Author

Bryan Wong is a business analyst in the Asia-Pacific region and in his free time writes business articles. In this article, Bryan talks about Hong Kong company incorporation and Hong Kong company offshore company.

Author (bryanwong). Submitted on Fri, 13 Jan 2012 Time: 8:35 AM

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