The latest COVID-19 outbreak has changed the dynamics of the entire world. Many businesses and trade entities are on the verge of crashing. The entire world is dealing with an economic emergency. With each passing day registering an upsurge in the number of cases, it is also making it difficult for the countries to pave the way to recovery. This makes it almost impossible to see a bounce-back to regain the old form.
According to the latest reports, 8,118,671 COVID-19 cases have been registered across the world with 439,198 deaths on the global radar. It wouldn’t be wrong to state that the pandemic’s shutdown has broken the back of even the strongest and the most powerful countries in the world.
Talking about the economic picture, amidst the crisis, everyone is trying to figure out ways to get up and recuperate. Established names across the world are trying to fight back and new entrepreneurs are looking for a safe haven to start their company. In this time of crisis, Hong Kong emerges as one of the best places to set up a company.
As seen in the latest reports, the Corona cases in Hong Kong are 1,113 with only 4 deaths and an impressive 1,067 recoveries. The numbers clearly show that Hong Kong is currently one of the safest places in almost every aspect. Establishing a company in Hong Kong amidst the COVID-19 crisis is not only possible but filled with bigger opportunities and a better success rate. There are several corporate service providers or Company Secretaries in Hong Kong that extend a helping hand to newcomers to the country.
Here is why Meritt Asia says setting up a company in Hong Kong a good idea:
A Bridge Between the East and the West
The ideal location of Hong Kong makes it a link between the East and the West. It is also the absolute location for someone who is trying to gain access to mainland China.
Hong Kong shares great rapport and economic ties with ASEAN countries providing an excellent ecosystem for new companies to thrive and expand. Plus, there is no scarcity of western investors in the country. Further, Corporate Service Providers or Company Secretaries like Merritt Asia are always there to help.
Paying high taxes is always a struggle for new companies especially in a foreign land. The easy and low-rate tax system of Hong Kong makes it a lucrative place to set up a company.
It should be pointed out that Hong Kong has one of the lowest tax jurisdictions in the whole world. It entertains a territorial tax regime. The salary tax starts at 2% up to 17%, whereas the corporate tax rate is only 15% with no appendages like capital gains tax, VAT, tax on dividends and interest, etc.
A registered company in Hong Kong can transfer money across China with only a 5% transfer fee. By saving much on tax, new companies get a better environment to flourish in Hong Kong.
Hong Kong is counted amongst the countries with the most driving and vigorous economy. The country knows no boundaries in terms of trade and hence, allows entrepreneurs and young minds from across the globe to come and establish their ideas in the country.
With free markets and trades and no restrictions and complex legalities attached to foreign ownership, investments, and controls, Hong Kong is the best place to set up a company.
Transparent Law and Order
Setting up a company in Hong Kong is unencumbered by all complexities of setting a new company in a new land. The transparent and well-streamlined law and order system of the country makes it easy for newcomers.
Intellectual Property Rights
The Intellectual Property Department of Hong Kong has set up rules and regulations for copyrights, patents, registered designs, and trademarks. They protect Intellectual Property Rights (IPR).
Setting up a company in Hong Kong opens the door leading to mainland China for entrepreneurs. Via WFOE (Wholly foreign-owned enterprise), one unlocks many possibilities of expanding business in the mainland.
Today, Meritt Asia says Hong Kong is indeed one of the best countries to open a new company as it is the only country that offers possibilities in abundance and the smoothest way to create success stories.