Forming a new company in Hong Kong is easier than you think. Besides being low-cost, it is an easy way to set up a business that will serve you for years to come. If you want to establish a new company, here are some of the benefits of company formation in Hong Kong.
There are five primary benefits of new company registration in Hong Kong. First, it allows you to avail of tax benefits. You need to pay income tax on your profits from your new company. However, this does not apply if you established the same as a sole proprietor. You need to pay corporate tax and property tax according to your income and wealth. For more information, refer to the Companies House or the Office of the Chief Executive or the Registry of Companies.
Second, forming a new company enables you to enjoy many services you might otherwise miss out on it. One of these is enjoying the benefits of unlimited liability. Because you do not have to register for the management and administration fees, you can save on these costs and enjoy more savings from the profits tax system.
Third, you get to enjoy several other benefits. One of these is enjoying the benefits of limited liability. It means that you are not personally responsible for any wrongs that occur under your company’s name. Another advantage is enjoying the benefits of company formation in Hong Kong. If you wish, you can open an unlimited number of trading and non-trading accounts.
Fourth, you get to enjoy benefits under the corporate laws of Hong Kong. One of these is limited liability. Limited liability means that the assets of the business are protected in case the assets are misused. Moreover, company formation in Hong Kong also offers you several tax benefits. These tax benefits include paying a lower income tax rate, exemption from income taxes for certain payments received from the overseas subsidiary, and exemption from income tax for specific amounts received by the parent company from its subsidiary.
Fifth, company formation in Hong Kong also allows you to enjoy several other benefits. One of these is getting to enjoy more flexibility when it comes to business funding. You can open as many bank accounts as you want. You can transfer the ownership of your company to another person. You can change the management of the business.
Sixth, company registration in Hong Kong provides many other benefits. One of these is getting to enjoy the benefits under the registration of the company. During the registration process, you get the right to use the company name and your choice symbols. Plus, once the registration process is completed, your company becomes registered to all the commercial bodies in Hong Kong.
Seventh, getting to enjoy such benefits, as mentioned above, is something that no business in Hong Kong can ignore. The point is that registering a company is not all. It is not even half the process. You need to carry out specific other tasks before you write to a company. In other words, you cannot just open an account and be done with it. It would help if you did other things like setting up a board of directors and appointing the board members.
Next, you must submit your Articles of Association and register your company. These associations include your business’s nature, the type of products or services you offer, the office address and contact details, the shares, shareholders, and other relevant information. All this is needed to ensure that your company is registered and helps in your business’s smooth running.
Lastly, doing all these tasks requires money. It is so because you must pay for your company’s registration and then for the ongoing maintenance. If you do not have money to do so, you may opt for traditional registration methods, but Hong Kong is not advisable. Instead, it would help if you considered going for company registration in Hong Kong.
Doing so is cheaper and much more comfortable than starting from scratch. Moreover, you are assured that company registration in Hong Kong will not take much longer than your company’s registration in any other country. Thus, you will be able to get a new company up and running in no time. Therefore, all you need to do is sign the company registration in Hong Kong contract once everything is ready.