3 Reasons Hong Kong is the Perfect Location for Internet-Based Businesses

hong kong investmentWhen 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.

S&P Sets Record Close At 2,000 Points

Wall Street is on a roll when it comes to record-setting. On Tuesday, August 26, S&P 500 surpassed the 2,000-point mark for the very first time.

30th record

StandardPoors_HeadquartersExperts note that this is S&P’s 30th record for 2014. Standard & Poor’s 500 index gained 2.10 points – or 0.1% – during the day, prompting the brand to go past the 2000-point mark by a hair. The session ended with S&P 500 at 2000.02 points, although it did climb up as high as 2005.04. The company has gone past the 2000 mark on Monday, August 25, but closed on a lower note.

Major rallies

The market has been on a generally positive tone in the most recent session.

The Dow Jones Industrial has seen a significant rise, although it did not quite cut it in finishing with an all-time high. The Dow, however, did set an all-time intraday high in the early part of the session.

The Nasdaq index has seen a 13.29-point upsurge.

Retail giant Amazon has also seen a 2.3% rise in its stocks after announcing its plans of purchasing video streaming service, Twitch.

Analysts note that the major rallies have been possible because of different mergers and acquisitions of big names, thus leading to better confidence in product quality among consumers.

HP Calls Back 6 Million Computer Cords

HP_logoTech giant Hewlett-Packard initiated a recall on over 6 million power cords it sold from September 2010 to June 2012.

Reports show that the affected units include notebook computers under the HP and the Compaq line and different models of docking stations. The company cited fire safety risks concerning the product.

Based on the inspection of federal regulators, HP’s power cords present an overheating risk. There had been cases of fire accidents linked with the recalled products. Out of the 29 reports, 13 cases cited different degrees of property damage, while two cases involved burns.

Online tool

The company also set up an online tool so that its customers would have an easier time finding out whether or not their cord is part of the recall. The tool can be accessed through the company’s website.

The Consumer Product Safety Commission has issued a warning to all consumers, instructing them to unplug all the recalled power cords immediately.

Amazon Buys Streaming Site Twitch for Nearly $1B

amazonRetail giant, Amazon, has finalized its plans of buying video streaming site Twitch for an all-cash deal that amounts to $970 million.

Sorry, YouTube

Twitch CEO Emmett Shear welcomed the deal with Amazon and said, “Being part of Amazon will let us do even more for our community. We will be able to provide tools and services faster than we could have independently.”

The story comes after previous reports indicated that Google’s YouTube has been negotiating an acquisition deal with Twitch. Earlier stories noted that YouTube has offered over $1 billion to buy the portal.

Twitch is an independent video streaming site dedicated to hosting broadcasts of video gameplay. Since its inception in 2011, the site has grown into a massive portal the gaming community holds dear. The site claims to have over 55 million active visitors each month.

The rise of gaming?

Experts suggest that this recent acquisition marks the rise of gaming, particularly the increase in its spectator base. Advertisers in the gaming industry have also grown in number, especially now that competitive tournaments are seen as live sporting events.

In July, Twitch streamed the biggest e-sports competition to date alongside sports channel ESPN. The competition, Dota 2 The International 4, had millions of viewers and a crowd funded prize pool of $10.9 million.