Expanding Overseas? 5 Reasons Why Hong Kong Makes Perfect Sense

Planning on taking your business to the next level? Looking to expand into a different territory? While dreaming of how to do this is easy, it’s another story implementing a plan. After all, there are many different components that require attention. The biggest, of course, is settling on a country for the expansion. 

One option is Hong Kong. Even though it isn’t a country, rather a special administrative region, it features a wide range of advantages for foreign businesses. Below are five reasons why you need to seriously consider Hong Kong for your expansion with the advantage of using Hongkong PEO.

1. It is a hub of business activity

The world-class business infrastructure present in Hong Kong makes it an attractive proposition for companies looking to expand. Its location is excellent for Western countries seeking to do business in China, acting as a gateway of sorts. The productive legal system – which is separate from Mainland China and uses English common law – which also means your company won’t be caught up in any unwarranted juridical issues. 

2. Beneficial tax system

While tax avoidance is rightly frowned upon, most businesses would be happy to reduce the rate they pay to their respective government. Hong Kong offers an opportunity to do this – and not via any nefarious tactics. Firstly, a low tax rate of 16.5% is implemented for corporations. However, this rate is halved for new businesses until they earn their first two million Hong Kong dollars. Moreover, profits made outside of Hong Kong are exempt from taxation. 

3. Made easy for international businesses

In numerous ways, Hong Kong makes it simple and inviting for international businesses to, well, do business. Even as a foreigner, it is fair game for you to own 100% of a company in Hong Kong. There are no obligations to be of a specific nationality or a local resident. You don’t have to reside in Hong Kong or possess a physical address – the latter can be covered with only a holding address, which is a registered office address. Crazily enough, you don’t even have to visit Hong Kong to form your business. 

4. Start immediately 

Combined with the previous point, the simplicity of operating a business in Hong Kong is enhanced due to how quickly you can set up shop in the area. This is particularly the case if a professional employer organization (PEO) is utilized. With the help of a PEO in Hong Kong, there’s no need to have a foreign entity established before getting to work. In addition, they can enlist employees straight away, comply with all Hong Kong tax and employment regulations, and streamline the entire hiring process. Also, if you are planning to expand to other places in China, there is a China PEO available, too.

5. No communication breakdown

When choosing to expand overseas, there is always one significant aspect to contemplate: communication. Arranging a business is complicated enough without throwing in a clash of languages. Thankfully for English speakers, this is less of an issue when it comes to Hong Kong. Along with English being recognized as an official language, it is claimed that nearly half of Hong Kong’s population speak English. This gives it a distinct advantage over most other locations in Asia.