Doing anything is difficult at the beginning. Before starting a company, you should consider the local development and the company ’s development goals.
Among the 2020 Economic Freedom Index, Hong Kong is at the forefront, with a slightly lower ranking, but from the perspective of the overall business prospects, it still remains good. As a well-developed metropolis in the world, all industries and industries are closely related to the international front-line industry. Especially in the financial industry, it has been the third largest financial port in the world, contributing to the influx of countless foreign capital into mainland China. At the same time, regarding the handling of funds, the locals are also open to handling foreign investment.
There are not many people from various countries doing business in Hong Kong, benefiting from the development of mainland China. More foreign companies are registered locally. Although affected by the lack of materials, most local raw materials need to be imported. Become an important export area.
As one of the important stock markets in the Asia-Pacific region, the index of Hong Kong stocks has always been an important criterion for measuring the level of economic development in the Asia-Pacific region. Among them, a group of companies have reached the world-renowned level, showing the potential of fighting against the New York stock market.
There are very few restrictions on starting a company locally, which is also one of the important reasons that attract most companies to start on the job.
Advantages of startups doing business in Hong Kong
In some countries or regions, there are some economies or basic industries that are related to the lifeblood of the country, which are controlled by the state. However, in Hong kong, there are very few restrictions, and almost any legal company can be created.
The high autonomy of enterprises in Hong Kong provides a better development prospect for small and medium-sized enterprise pioneers, turning more energy into the development of their own enterprises and creating a foundation for their long-term operation.
Hong Kong, as an important raw material import and finished product export area, most countries are exempt from Hong Kong, and are optimistic about the investment of Hong Kong businessmen, eliminating the import of raw materials from third-party pipelines, making the enterprises allocate the purchase The amount of raw materials required is minimized.
In terms of information resources, companies established in Hong Kong will enjoy the exchange of information with international connections, help enterprise users better avoid risks, and rationally allocate their own production tasks. This is one of the advantages of Hong Kong as an important free economy. It is also the direction most valued by many users who set up companies in Hong Kong.
Hong Kong tax
Thanks to the implementation of the one country, two systems system, all local taxes in Hong Kong are used for local construction. This measure has greatly promoted the vigorous development of the local economy, and because the exemption from paying taxes to the Beijing Central Government, the local basic tax is relatively low.
In terms of basic taxation, companies established in Hong Kong will also enjoy the local taxation system. Companies listed in Hong Kong that match international competitiveness generally have lower tax rates, which is more beneficial to the company’s future development and will free up more salary space to stimulate the local industry to flourish.
For some special industries or industries that are extremely scarce in Hong Kong, the local government has introduced a temporary tax exemption policy to increase the attractiveness of these industries, attract more people to invest in special industries, and start up in Hong Kong companies.
Because local companies in Hong Kong have a high degree of freedom, as long as they comply with local regulations and simply pay taxes, they generally do not undergo complicated audits.
Hong Kong’s international advantages
As a focal point of capital fusion between China and the West, Hong Kong ’s legal system and economic infrastructure have attracted a large number of countries. There are about 100 countries that have implemented the visa-on-the-ground policy for Hong Kong, and good credit has brought the region into line with international standards.
This international trend has pushed the local economy closer to first-tier international cities such as New York and London, and there has been a large amount of complex foreign exchange inflows. Compared with other regions with stricter audits, there will be more opportunities and possibilities to attract other foreign companies to invest. In the overall economic construction, funds from developed countries are one of the important reasons for local development.
In the context of internationalization, the level of attraction of funds is an important indicator of the sound development of Hong Kong. Although the trend of international cooperation is more clear, the overall situation is still somewhat complicated. Whether it can be further developed in the fierce international competition is an important analysis of Hong Kong ’s current situation.
Hong Kong’s resource advantages
There are no special construction materials or ecological resources in Hong Kong, which can meet local mining needs. Through mainland China’s overall support for Hong Kong, many resources have also received priority supply. Through this, local resources have been effectively supplemented to maintain Hong Kong’s current development level.
In the development industry, most of them also take high technology and some new industries as the main goals of local processing enterprises. With the development of the times, basically Hong Kong’s heavy industry was basically eliminated in the development of the times after the 1980s. Except for individual special enterprises (waste incineration and the like), heavily polluting enterprises have moved out of Hong Kong, which has played a role in promoting the development of local high-tech industries.
On the mainland, it is also one of Hong Kong’s important backup forces. Most of the daily consumables and some ingredients required for the local area are first transported to Shenzhen, and then enter Hong kong through foreign trade to meet daily needs. It has made effective measures for Hong Kong’s industrial transformation.
Basic service industry developed
From the analysis of industry types, the current Hong Kong industry has basically completed its transformation. In addition to the dominant position of the financial industry, which is unshakable, secondary economic growth factors, such as service and real estate, are also important contributors to the local economy.
For example, the catering industry in Hong Kong is very developed, and the entry and exit of high-income groups has brought about the impetus for rising prices. At the same time, although the local cost of living is among the highest in the world, from the current development level, this is actually due to the rapid growth of local income. Special cuisines from all over the world in the catering industry serve local residents from different countries.
Hong Kong is also very developed in the tourism industry. Although there are not many ancient cultural buildings, in view of the flow of people, a large number of paradise known as cultural leisure are built. Among them, the more well-known ones are Disneyland and Ocean Park. Developed is an important embodiment of local soft culture.
Ease of loan in Hong Kong
In recent years, due to the tightening of Hong Kong ’s policies, loans may have been audited more rigorously. This is mainly due to changes made by the audience on the basis of the criticism of local financial loans. If it is in accordance with the approval of Hong Kong construction enterprises and related industry loans, the loan speed will also be adjusted quickly according to the size of the enterprise to help the enterprise develop better.
If it is a newly created and newly established small and medium-sized enterprise that complies with the relevant laws and regulations of Hong Kong, as long as it is reviewed in the relevant institution, there will be an answer soon. Hong Kong’s financial audit business has always been known for efficiency.
Considering the current loan policy, Hong Kong is gradually tightening the difficulty of lending. On the surface, it may be more difficult than usual, but the strict audit system is mainly to prevent people from getting muddled in the water, and to combat the use of local investors. Loan requires unfamiliar loopholes and thus economic fraud.
Generally speaking, if you simply want to make loans in Hong Kong’s economic investment or related industries that encourage development, it is not difficult.
Achievements of some companies’ development in Hong Kong
Since the return of Hong Kong’s sovereignty to China, more and more companies have taken notice. The trade relationship between the two sides and the local political system have established a large number of branches in Hong Kong, with the aim of occupying the frontier of the market in advance. In addition, benefiting from the title of local tax-free paradise, most of the luxury stores of some companies have branches in the local area.
Take Apple as an example, although it has many direct-sale stores in the mainland, it still has the advantage of the Xiangjiang Apple Store in terms of competitiveness. The low tax measures have made the price of the Hong Kong version of Apple closer to that of the US version. The price makes Apple ’s official Hong Kong direct selling price more advantageous in terms of price attractiveness, and some land passengers will also buy lower-priced Apple mobile phones when traveling to the local area.
The above factors have greatly promoted the sales of local direct sales stores and increased the profits of enterprises.
In addition, there are other companies in Hong Kong that have also achieved relatively good income. For example, luxury goods stores such as Chanel and Dior have created tax-free shops in Hong Kong, and their income has increased significantly.
The advantages and disadvantages of starting a company in Hong Kong compared to other regions
Advantages:
As one of the important windows in the world, Hong Kong has a very strong convincing power in the financial industry. The liquidity of funds is good, and the control is not strong. The high-tech industry has good development prospects and is supported by relevant policies. Backed by mainland China, the energy supply is abundant and the talent reserve is sufficient.
Disadvantages:
Not a first-line resource mining area, crowded. Generally speaking, the development of high-tech enterprises in Hong Kong mainly focuses on the fifth-generation communication technology and other innovative industries, which often receive better treatment.
Inclusion
In any region, it is not realistic to make a newly established company stable for a long time, but the influence of third-party factors can indeed change the company’s development prospects to a certain extent. Start-up companies should consider the appropriate founding location based on the company’s direction and target audience.