A new tax policy unit within the Government will consider the implementation of a new set of tax breaks for small companies in Hong Kong. New Chief Executive, Carrie Lam, first introduced the proposal. Our company formation agents in Hong Kong can give you more details on these proposed tax breaks and whether or not the system will apply to your business.
Hong Kong has seen a rise in the total number of registered companies. At the end of June, there were more than 30,000 newly registered companies, compared to the end of 2016. This year, more than 80,000 companies were registered in the first six months, out of which approximately 20,000 were incorporated via the online platform. Company registration in Hong Kong is straightforward, especially if all the documents are in order and prepared beforehand.
China and Hong Kong maintain a very close business relation, despite the differences between their business regimes and the fact that the Mainland is opening up to the world more in recent years. Hong Kong is an important business hub in Asia and many foreign investors open a Hong Kong company to use it as a springboard for their business activities and investments in the Mainland.
Hong Kong and Australia have signed an agreement to allow for a better cooperation and support for financial innovation between the two jurisdictions. This new agreement tightens the existing relations built between Hong Kong and Australia, including their trade and investment relationship. Foreign investors from Australia who want to open a Hong Kong company can further benefit once the fintech agreement enters into force.
The volume of exported goods in Hong Kong grew by 15% n March, compared to the same month last year. The total quantity of imported goods also rose according to the Census and Statistics Department. Many of the entrepreneurs who are interested in company formation in Hong Kong choose a business field that is connected to trade or that produces exportable goods.
Hong Kong officials plan on revising the city’s industrial estate policy in order to endorse re-industrialization. The purpose is also to attract new investments in value-added technology industries and to increase the manufacturing processes. Investors in business sectors that qualify as technologically innovative could benefit from these measures if they intend to open a Hong Kong company.
Hong Kong’s gross domestic product increased by 4.3% during the first quarter of 2017 shows the date released by Hang Seng Bank. The growth is part due to an increase in consumer spending and part due to more property investments. Based on this data, the growth of the investment sentiment in the city could make room for more company formation in Hong Kong as consumer spending and demand continues its positive evolution.
The Hong Kong Government entered a new negotiation phase for a free trade agreement with Australia. The two jurisdictions have been negotiating the areas that should be covered by such a treaty and plan on starting the negotiations. Some of the most important changes, ones that could determine Australian investors to open a Hong Kong company, would include some tax changes and eliminations.
The initial prediction for Hong Kong’s GDP rate increase in 2017 was lower than the one predicted in the latest forecast. A 2.4% increase is expected, compared to only 1.8% as initially predicted. This positive evolution is due, in part, to Mainland China’s recovery. Investors who are interested in Hong Kong company formation can use the predictions released until this point for several industries, including tourism and services.
The number of fintech start-ups in Hong Kong increased by about 60% during 2015-2016, according to the Hong Kong Startup profiling Survey. Moreover, this growing business field that shows important potential has also been a major recipient of investment: some 400 million US $ venture capital investment in fintech took place in the city in the analysed period. The Hong Kong company formation process is quick and easy for all types of companies, an advantage for those who are considering opening a fintecth start-up in the city.
Hong Kong’s newly elected Chief eEecutive, Carrie Lam, stated in her first speech after the election that she plans on following a new tax policy. She highlighted the fact that she does not intend to change the low and simple taxation regime but will look towards introducing new tax breaks. Investors who are interested in Hong Kong company formation already benefit from a very advantageous tax regime. Nevertheless, new tax breaks would further increase the territory’s attractiveness.
Hong Kong and Singapore are both in the top choices of cities for expats. They are dynamic and competitive cities that combine both the Asian and the Western cultures. This makes them a top choice both for foreign investors and for expats who want to relocate here. According to a cost of living survey ordered by the Economist Intelligence Unit, Hong Kong and Singapore are included in the top ten cities for expats with a high cost of living. However, Hong Kong remains the more affordable option for expats who want to relocate in the Asia-Pacific region.
Hong Kong remains in top three of the Asian Competitiveness report as the city with the most robust economy in the region. The survey was released as part of the Asian Annual Conference in Hainan province, China. The Special Administrative region has a number of undeniable characteristics that are advantageous for all those investors who are interested in Hong Kong company formation.
A recent Inland Revenue Amendment includes measures that would increase the city’s attractiveness as a center for aircraft leasing. This initiative would mark the Government’s intention to strengthen another business sector in Hong Kong, apart from the traditional financial and professional services sectors. Aircraft financing is, in this context, a good business proposition for investors in Hong Kong, which the number of commercial aircraft to increase substantially over the next years.
Co-working spaces can be a most welcomed solution for growing businesses and investors in Hong Kong who also want to expand their professional network. The city is a financial hot spot in Asia and many start-ups are taking their first steps here. The easy company registration in Hong Kong and the lack of requirements for a minimum share capital are two important considerations for investors. Moreso, those who are looking to budget their start-up can consider managing their business from a co-working space in Hong Kong.
A series of new policies, including tax measures for the insurance industry, were presented by the Hong Kong Financial Services Department at the beginning of the month. These changes aim to improve the city’s position as a well-known insurance hub in the Asia-Pacific region. Hong Kong is a business hub and one that offers investors, particularly advantageous tax requirements. Investors who want to open a Hong Kong company in the financial or insurance sector often choose this jurisdiction because of the tax measures.
Hong Kong’s tourism industry was one of the favored industries after the 2017 Budget was drawn up. The relief measures planned for this sector include an important one-year waiver for travel agents. The entire tourism industry, however, will benefit from the new Budget measures: the waiver will also apply to hotels and restaurants in Hong Kong. Investors who want to start a travel business in the city or open a Hong Kong company can benefit from this change in 2017.
Hong Kong’s Financial Secretary announced his most recent plans for creating a new tax policy. One issue that stood out was the narrow tax base in Hong Kong and the importance of maintaining a predictable tax regime which the city is known for. Investors who open a Hong Kong company primarily take advantage of the low taxation regime. Changing the current situation could mean risking impacting the international competitiveness, the Secretary believes.
The exports of goods from Hong Kong increased by 9.8% in December 2016, on a year-on-year basis. The value of re-exports also rose and the analyzed period was also a good one for imports. Comparing the volume of imports from 2015 to that in 2016, last year was one that registered good development in the trade sector. Company registration in Hong Kong is straightforward for all companies, including those in the import and export business or goods transportation.
John Tsang, one of the candidates for the Chief executive position, announced a series of tax reform measures that would be beneficial for small and medium companies in Hong Kong. Accounting specialists welcomed his proposals but asked why he did not come up with these measures while he was acting as the Financial Secretary. Our company registration agents in Hong Kong take a look at the proposed tax plan and what it would mean for small businesses in Hong Kong.
Hong Kong has one of the best infrastructures in Asia, as highlighted in the recent BMI Research Asia-Pacific Infrastructure Risk/Reward Index. On a global level, the city occupies fourth place, similar to Singapore. Hong Kong is known for having a well-developed infrastructure market and the research highlights the city’s strong points. Investors interested in company registration in Hong Kong will often choose this location over others in the Asia-Pacific region particularly because of the well-developed business environment.
The total profit recorded in the restaurant's sector in Hong Kong increased in 2016 by 2.9 percent. The largest increase was recorded during the fourth quarter of last year, with a value of approximately 27.8 billion HK $. Hong Kong is not only an important business center in the Asia Pacific region but also a tourist destination, receiving a large number of tourists every year, especially from Mainland China. Investors who open a Hong Kong company can enter the food and service industry.