The UK is a powerful player in the European business world but expanding your business to Hong Kong will kick off your business’ global expansion.
The processes involved in company formation in Hong Kong is relatively straightforward compared to the UK, and companies that decide to grow their business in Hong Kong can take advantage of the international and bilingual workforce there as well as its links to other Asian countries.
Both the UK and Hong Kong offer a range of options in terms of the types of company entrepreneurs can open, but what are the differences between them?
The United Kingdom: Companies can be registered online or by sending the relevant forms via post. The process can be done by the business owners themselves or by using an agent or a third-party software. Perhaps most importantly, the corporate income tax is 20% in the UK.
Hong Kong: The region has a straightforward system when it comes to company registration, both for well-established corporations and start-ups. The region’s low corporate income tax make it an attractive location for global expansion – just 16.5%, or 15% for unincorporated businesses. There are no withholding taxes on interest nor on any dividends distributed by a Hong Kong entity. Additionally, double taxation relief is available in Hong Kong – any profits made by an overseas company in Hong Kong will only be taxed in Hong Kong.
Starting your international expansion in Hong Kong will be a perfect way to step into new markets and will be a gateway to the rest of Asia. With its English-friendly base, what more are you waiting for? Contact us here for more information.