Why Startup In Hong Kong?

Welcome To Hong Kong - The Pearl Of The Orient

Hong Kong, which has been ranked the ‘World’s Freest Economy’ for over a decade, is a regional business hub in Asia. Hong Kong’s close proximity to China, its similarities in terms of culture, social customs, and language, and its international business environment have made it an ideal base for foreign investors to enter the Chinese market. These characteristics also help mainland investors invest in regional and global markets. Hong Kong continues to be Asia’s second-largest and the world’s third-largest Foreign Direct Investment recipient.

The following are the key attractions for enterprises, investors, and entrepreneurs to set up a company in the Special Administrative Region of China:

Proximity to the mainland;

Perfect location on the Asia-Pacific region and along the east-west corridor;

Openness to trade, talent, and investments;

Business-friendly regulatory and tax system;

Status as an international financial centre; and

Outstanding infrastructure.

Local Government Support

The Government of Hong Kong SAR is also committed to driving local business through a variety of initiatives:

Support for Business Downturn

Patent Application Grant

Social Innovation and Entrepreneurship Development Fund (SIE Fund)

Innovation and Technology Fund (ITF)

SME Export Marketing Fund (EMF)

Low, Simple, and Competitive Tax System

Businesses and individuals in Hong Kong enjoy one of the most tax-friendly systems in the world. Only three direct taxes are imposed and there are generous allowances and deductions which can reduce your taxable amount.

1. Profit tax rate for the year of assessment of 2018/19 onwards

Assessable Profits in HK$	Applicable Tax Rate
	Incorporated	Unincorporated
Up to $2Million	8.25%	7.5%
Above $2Million	16.5%	15%

2. Salaries tax rate for the year of assessment of 2018/19 onwards

Net Chargeable Income	Salary Tax Rate	Salary Tax Payable Amount in HK$
For the first $HK50,000	2%	$HK1,000
On the next $HK50,000	6%	$HK3,000
On the next $HK50,000	10%	$HK5,000
On the next $HK50,000	14%	$HK7,000

3. Property tax of 15%

Here are the taxes which Hong Kong does not impose:

No sales tax or VAT

No withholding tax on dividends and interest

No capital gains tax

No tax on dividends

No estate tax

Free Trade Port

Another benefit of setting up a business in Hong Kong is its free trade policy. The city’s free port status and easy customs procedures make it easier for businesses and companies to operate.

Entrepreneur Visa In Hong Kong :

To be eligible for Hong Kong’s Entrepreneur Visa, the applicant should be in a position to make a substantial contribution to the economy of the HKSAR, with consideration factors or startup businesses. Their startup business may be considered favourably if it is supported by a government-backed programme with a rigorous vetting and selection process. For example:

Incu-App, Incu-Bio and Incu-Tech programmes administered by the Hong Kong Science and Technology Parks Corporation;

Cyberport Incubation Programme;

Small Entrepreneur Research Assistance Programme and Enterprise Support Scheme administered by the Innovation and Technology Commission; and

Design Incubation Programme administered by the Hong Kong Design Centre.

Local Registered Address

Other requirements:

No criminal record.

Good education.

Business registration. You must register and establish your new business in Hong Kong before applying for a startup visa.

People who successfully apply for a visa can bring their spouse and dependent children under the age of 18, provided they have sufficient funds and suitable accommodation. The limit on their stay is the same as the visa holder – who is officially the ‘sponsor’. A spouse holding a Dependant visa can undertake any type of lawful employment in Hong Kong.

Applying for an Entrepreneur Visa

An entrepreneur must have the backing of a local company or individual willing to take responsibility for their repatriation if ever required. To apply for an entrepreneur visa, you will need to provide:

A completed application form.

Completed sponsor’s application form.

A copy of the personal particulars page from your passport. If already in Hong Kong, provide a copy of the page showing your latest arrival in the area.

Proof of relevant academic and business qualifications and experience.

A copy of the company’s employment contract or appointment letter.

A comprehensive 2-year business plan.

Proof of your country of residence.

Why InCorp Global?

Setting up a company in a new country may seem daunting. InCorp Global helps businesses at every stage by providing seamless corporate services that enable entrepreneurs to focus on business growth.

InCorp is an award-winning company and has helped more than 10,000 global entrepreneurs and companies launch their Hong Kong and Asia ventures successfully. Count on our experienced team for the incorporation and compliance of your company.

Headquartered in Singapore, InCorp Global has built a leading presence in Southeast Asia including Indonesia, India, Hong Kong, Vietnam, Philippines, and Malaysia.

CONTACT US

Share Your Details

DISCLAIMER: The trademarked names and logos showcased on this website are owned by our affiliate partners or respective companies. As a publisher of their products or services, we receive a commission for successful leads in return for helping you and our affiliate partners to grow in the startup world :)

Made with love in startup world.