When you’re planning a start-up, the first problem you have is finding the right location. Whilst there is nothing wrong with establishing your business in your home country, doing so can cost big. Today, it’s more practical to venture into offshore corporations for easier management.
Hong Kong is one of the most prominent tax havens in the world. It is the epitome of globalisation and the free economy, which makes it ideal for businesses – particularly Internet-based ones. Three reasons justify this claim:
Affordable Set-Up Costs
Compared to the cost of setting up shop in the United States or in Europe, the cost in Hong Kong is way lower. You can have a corporation up and running in no time. The best part is that you can do this without even having to fly to the area.
There are agencies that provide company registration services in Hong Kong for a reasonable fee. You can acquire a business address, phone, mail, and fax services, and a bank account. And since you operate an Internet-based business, you can interconnect your entire enterprise through a virtual office, thus giving you better flexibility in providing your services.
Tax- and Expense-Related Perks
Did you know that Hong Kong charges a 0% corporate tax for any transaction completed outside the country? Of course, you would still have to pay taxes in the country where the deal took place, but this alone spells a great benefit for your business. Hong Kong doesn’t have capital gains and dividend taxes as well. Moreover, the HK government lets you write off more expenses than the usual standard in other countries.
These concepts present invaluable perks for your enterprise. Online businesses tend to transact outside the home country, which means you can take full advantage of the 0% corporate tax.
Banking and Business Prowess
Hong Kong is famous for being the poster child of globalisation. But apart from the area’s economic freedom, it’s also an ideal business location because of its strength in banking and finance. You can use your Internet-based business to diversify your assets outside your home country and grow your trade from there.
These three reasons sum up why Hong Kong is the perfect location for any Internet-based business. With such flexible economic policies, any would-be entrepreneur can propel their enterprise to success.