Hong Kong … the Asian giant of business

Hong Kong … the Asian giant of business

News0 comments

Continuing with our policy … “When you arrive, we are there”, this time we will talk about Hong Kong, destination which although has plenty of business benefits, tax and legal complexity makes advisable to have assistance when invest.

Hong Kong is the commercial door to Asian continent, considering that it’s close to main cities and it has an important international airport. Several recent studies determine that it will be the second richest location in the world in 2050, with an estimated GDP per capita of 116.000 USD.

Investors are always welcome there by an efficient regulation with low taxes. By way of example, Corporation Tax will only be paid in the event benefits had been obtained by the company in Hong Kong. Taxation will be 16.5% for corporation or 15% for no corporation business. On the other hand, Personal Income Tax, without treating resident or non resident differently, is a progressive tax, from 2% (From HKD 0 to 40.000) to 17% (More than HKD 120.000).

We have three options to set up:

Firstly, we can choose a Hong Kong Limited Company, whose members have to be at least a shareholder (legal owner) and a director (general manager), although both can be the same person. Establishment will take a maximum of seven days from we have provide all necessary documents to the Administration.

Secondly, a representative office could be chosen, an entity without legal existence, which is interesting for marketing and advertising purposes, but it can’t invoice.

Finally, we can opt for a branch office too. Maintenance requirements are the same to a limited company and it doesn’t have any limit to operate, but it takes a long time to be created and it demands a lot of paperwork.

We shouldn’t overlook the fact that Spain and Hong Kong ratified a double taxation Agreement in 2013, which gives more legal security to Spanish investing companies.

We can say that Hong Kong have many advantages for investor, in summary, a strategic geographical position, a beneficial regulation, and others, as a enviable infrastructure, or English as Business language.

In Evolutiza Lawyers & Tax Advisors, we can advise you about investment ways in Hong Kong. Do not hesitate to contact us.

Comments are closed.

Leave a Reply

You must be logged in to post a comment.