Why to start your Startup in Hong Kong?
- by Sudhansu sekhar Sahoo
- 2 months ago
Hong Kong, a shopper’s paradise on earth is what we get to hear mostly. It is true that it is a sought-after destination in terms of visiting cloth shops for exquisite apparels, and enjoying the temple street nights and so on. But what many of us forget that it is also a destination for budding companies for starting their journey.
Hong Kong is the world’s 5th biggest economy and it’s rapidly soaring with respect to technological advancements and other verticals. It is no doubt that so many of the multinationals like Apple, Amazon, Google, PepsiCo., and the likes have their registered offices over there.
We would be looking at some of the vital points as to why you should begin the startup journey from this city. Lets’ dive into the next section for the details.
Best reasons to have your startup in Hong Kong
Below given are some of the vital points that would help entrepreneurs and businessmen around the world to lay their foundations and flourish with aplomb. The list is as given below,
- The Best Economy There Is. The first and foremost reason to choose Hong Kong as your preferred target for business would be the fact that has the most transparent and free economy. As per multiple types of research conducted by experts, the country is the no. 1 position regionally, and globally as well. Hong Kong offers up to about $12million on financial liberty. Some of the important statistics that would markedly prove advantageous for potential startup founders are,
- 90% of trading freedom.
- 89% of labor freedom.
- 90% of property rights.
- 90% of financial liberty.
What more can we need from an economy so diverse and open as this?
- Foreign Nationals can do Business.
It is a regulation in Hong Kong that foreign nationals can be the sole business owners for their startup firms or listed company. They would be able to join and be a part of the top brass, and they can even be majority shareholders in the organization. For entrepreneurs who want to start their business fresh, it is not a problem at all.
Hong Kong Government has invested in a scheme called “INVESTHK” designed for foreign nationals allowing them to promote their investments for free. They can even enjoy health benefits to the fullest with zero legal complications.
The Government of Hong Kong also provides some of the other schemes crafted for startup organizations that include, loan amount assurances, incubators schemes, providing funds for marketing. This is a clear indication that foreign nationals are welcome any time to take the root of their ideas and get rich.
- Any Sector is a plausible choice
Hong Kong is not limited to business sectors that might not work. If you have a startup firm, you need to decide on multiple factors and choosing a sector is an important choice to make. But if you are in Hong Kong, you have got minimal to negligible things to worry about in terms of choosing a sector, and getting the investments.
Owing to these factors, there are over 2000 startups that are flourishing and gaining heavily in terms of capital. Some of the sectors that are being explored here in this country are given as follows,
- Design Sector – 8.65%
- Hardware Sector – 14%
- Healthcare Sector – 3%
- Data Analysis Sector – 2.79%
- Information Technology Sector – 19%
- Education and Learning Sector – 7.26%
- Streamlined Tax LawsWhen it comes to the tax laws for Hong Kong, nothing can be more perfect or transparent than this. The country is not ridden with,
- Value Added Tax.
- Estate taxes.
- Capital Gains Tax.
- Dividend taxes.
It is incredible that the country some of the lowest tax rates which are very beneficial for the startups. These include,
- Profit Tax – 16.5%.
- Salaries Tax – 15%.
- Property Tax – 15%
All of these details are mentioned on the official website designed and updated by the Government of Hong Kong. There are great economic freedom and the world literally agrees to that.