Why incorporate in Hong Kong

One of the best areas to invest in is Hong Kong. This is why most foreigners tend to open up a branch of their company in the area. There are several ways to ensure that your Hong Kong incorporation remains safe and correctly functional. There are mainly three main points that you need to know when opening up a branch in Hong Kong. The first point to note is that if a business is opened up as a sole branch of an existing company, the mother company is liable for all the new business’s debts and all its liabilities. The second point to note is the subsidiary method. In this case, the new company is considered as a completely separate entity. The last point is the representative office. In this case the office opened should strictly be a non-profitable entity.

Benefits of incorporating in Hong Kong

There are several benefits of opening up incorporation in Hong Kong. It has actually been termed as a business city. Some of the main advantages include;

• Positioning- Hong Kong is actually at the heart of Asia. Its positioning allows it to be four hours close to some of the major markets in Asia. Since Asia will have the largest population of the middle class this is among the best areas to invest in. Its proximity to the Pearl River delta which is actually the world’s largest manufacturing region, allows investors to access a have a billion consumer market from south China alone. Hong Kong can be considered as the best region to start up a business.

• Transportation- Hong Kong has been able to set up modern transport features that ensure easy movement. With great air, water and road transport, everything is within reach. Apart from efficiency, all these transportation methods are highly affordable.

• Policies- Hong Kong has actually been rated among the best free economies in the world. Hong Kong has a highly friendly business legal system. This makes it easier to open and run a business in the location. This is why most people are opening up businesses in the region. Incorporations benefit from the low company tax that has been set up in the region.

• Living- Hong Kong is actually one of the safest places to live. They have a great security system that ensures protection of its citizens. Apart from that, it is a highly cheap place to live. This assures any potential investors of safety and accessibility to all areas of the region.