Hong Kong is also known as the SAR (special administrative region) of China. It is also one of the most famous and largest financial centers in the whole world. Hong Kong has established itself as an emerging alternative for foreign investors because of its various features. Various big companies have started investing in Hong Kong. Well to understand what makes Hong Kong the best deal for investors, let us quickly look into some factors that might help you develop an image of Hong Kong.
Statistical significance of Hong Kong
As mentioned above, Hong Kong is one of the largest financial centers in the world. When we talk about the statistical significance of Hong Kong, then not only the financial service sector but technological sectors also contribute. It has been observed that these financial sectors have helped in the growth of the GDP of Hong Kong as well. Despite being one of the largest business hubs, another factor attracting various businesses is the vibrant environment of business in Hong Kong.
Keeping all these points aside, even the government in Hong Kong is offering significant benefits to investors and entrepreneurs to do business when you have set up your Hong Kong company formation.
The demographic structure of Hong Kong
Hong Kong is set up as an island which is also a special administrative region. Before the colonial period, Hong Kong was a part of China’s mainland. After the colonial period, the main focus of the government shifted towards ways of boosting the economy. The government introduced a free market economy in Hong Kong which promoted foreign investment and eventually boosted the economy of Hong Kong.
Not only big investors, but small entrepreneurs as well got benefits from all government resources. As per statistical data, in 2020, more than 1.3 million companies registered in Hong Kong.
Attractions for investment in Hong Kong
Starting from investment, to the Hong Kong company registration everything is regulated and benefited from various government policies. Let us quickly go through what are the various features that attract investment in Hong Kong.
- Different types of incentives offered by the government that is bound to promote foreign investment in Hong Kong
- One of the exciting features of Hong Kong that shows the significance of being a financial sector is that Hong Kong is also known as a tax haven.
- Hong Kong is a free-market economy and that is also a crucial factor for investment in Hong Kong.
- Infrastructure and world-class facilities in Hong Kong.
- Facilities like various types of languages, cultural diversities, and opportunities for development in Hong Kong.
Hong Kong is a tax haven!
What is a Tax Haven?
A tax haven is termed for those countries which are said to have low or zero tax liabilities for the registration of the company or business. In Hong Kong, there is a zero percent rate of tax on all types of foreign income and sources. There are various laws as well that promote the wealth of foreign corporations and residents in Hong Kong!