Hong Kong stands out as the ultimate place to locate an offshore business. For years, it has cut a name as the best investment jurisdiction because of unique independence from the mainland China. One notable characteristic of businesses that relocate or get incorporated in Hong Kong is rapid growth. Here are the main facts about business growth Hong-Kong that every investor needs to know.
Growth is modeled by the government support
The main force behind business growth Hong-Kong is government support. Most companies that have rapidly grown after entering Hong Kong indicate how the government helped them catapult to success. Well, this support may differ depending on the businesses focus and operational niche.
Hong Kong stops at nothing in ensuring that businesses succeed. As a small island, it lacks natural resources and land for agriculture. This leaves it with very limited options for economic growth. From subtle visa requirements to direct guidelines for businesses, Hong Kong administration does not leave anything to chance when it comes to supporting businesses. Your business growth is the main pillar of Hong Kong economy.
Most businesses expand rapidly because of low tax regimes
For years, Hong Kong has progressively learnt that high taxes easily deflect investors. Therefore, they have a subtle tax regime that allows businesses to retain the bulk of their profits. The most notable tax-related benefits for businesses include;
- No sales tax/ VAT
- No capital gains tax
- Income sourced outside Hong Kong is not taxed
- Recently, Hong Kong slashed taxes for businesses with profits of less than $2 million
Getting tax residence certificate helps to accelerate businesses growth
Businesses focusing on the mainland China and other neighboring countries experience faster growth because of Hong Kong’s Double Tax Arrangements (DTAs).
When you get a Tax Resident Certificate in Hong Kong, forming partnerships and doing businesses in most neighboring countries is easy and direct. Note that Hong Kong requires businesses to demonstrate tax substance before getting a resident certificate and special treatment under DTAs.
Access to business credit is easy and direct
One thing that businesses coming to Hong Kong enjoy more compared to other jurisdictions is easy access to financial services. As a financial hub, every large bank in the globe has a branch or is headquartered in Hong Kong.
After businesses commence operations, banks look at their compliance with Hong Kong laws, business progress, and growth plans to provide loans. For businesses in the tech niches, the financial institutions and government departments are ready to support their ventures for faster growth fully.
Business growth Hong-Kong rely on progressive market survey
Notably, Hong Kong business environment is very competitive. While the government works extra hard to anchor new businesses, a clear understanding of the market is very crucial. Most enterprises that grow rapidly in Hong Kong rely on the progressive market survey.
They follow the emerging trends to understand the target audience’s needs. This study is particularly crucial when entering the Hong Kong market and planning for expansion.
Every business targeting the Hong Kong market should appreciate the dynamism of the market and leverage operations for faster growth. Besides, your business growth Hong-Kong can also be realized by forming unique partnerships with other companies in the target niches.