is an international business and financial center in Southeast Asia while Australia
is a country rich in natural resources, that has good infrastructure. Although both countries offer various options for investment and a choice between multiple business entities, investors should be aware that several taxation differences apply.
Opening a company in Australia
In order to be able to do business in Australia, foreigners are required to obtain a Business Innovation and Investment Visa. The time required to open a company in Australia will depend on the chosen business form and so will the initial business start-up costs.
The corporate income tax rate in Australia is 30% and a lower rate of 28.5% applied to companies that have an aggregate annual turnover below 2 million AUD. A value-added tax applies on the outputs and inputs of a company’s activities. Its rate is 10% and mandatory registration for the Goods and Services Tax is applicable.
Opening a company in Hong Kong
Hong Kong has a welcoming business climate and a very competitive tax regime
. There are no withholding taxes on dividends and the corporate income tax rate is 16.5% with a lower rate for unincorporated businesses. Company formation in Hong Kong
is accomplished in a few steps and businesses can commence their activities in a matter of days, if the documents are properly submitted and all the licenses are obtained.
Hong Kong offers a good location in Southeast Asia. Those who choose to open a Hong Kong company
can afterward expand to other ASEAN countries. Another advantage is that the city is closely located to Mainland China
, at the same time remaining autonomous in terms of its business regime and law for foreign investments.
The two locations offer access to different markets and present varied business opportunities.