Hong Kong (PRWEB) February 15, 2010
According to statistics recently released by Company Registry, 109,424 companies were incorporated in Hong Kong in 2009. This translates to an increase of nearly 11% over the corresponding figure for the prior year, which stood at 98,645. Hong Kong's rising company registrations in a challenging global economic environment are a testament to its continued appeal as an investment destination.
Further analysis of the statistics by GuideMeHongKong.com reveals that foreign firms are the main driver for company formation growth in Hong Kong. A large number of the firms incorporated in Hong Kong are representatives or local branches of parent companies from USA, Japan, UK, mainland China or the EU. Jacqueline Low, the Director of Corporate Services at Janus Corporate Solutions - the company that runs the GuideMeHongKong.com site - attributed two factors for this trend: a) the diverging tax policies of different countries as a consequence of the global financial crisis and b) Hong Kong's attractiveness as the launching point for firms that wish to enter China.
Ms. Low said, "In the aftermath of the economic crisis, the western economies of USA, UK and Europe are facing huge public debts and are rapidly changing their tax policies to meet their funding gaps. This has resulted in a challenging environment for business managers in these economies who now face rising taxes in addition to capital constraints caused by tightened credit standards. On the other hand, the Asian economies, led by China, continue to add to their large foreign reserves and are roaring out of the recession. They can afford to reduce the tax burden on their business sector - Singapore and Hong Kong being two recent examples of this trend. Hong Kong's tax rates are the lowest in Asia. Moreover, there is no tax on offshore income, no dividend tax, no capital gains tax and no VAT." Ms. Low added, "For a western manager, the decision to incorporate in Hong Kong becomes an obvious choice when one combines the above analysis with the enormous and rapidly growing market in China, for which Hong Kong is an ideal launching point."
Hong Kong's unique advantage of location, low taxes, and business friendly climate makes it a premier location for business set-up and expansion in Asia. It is a preferred venue for MNCs and mid-sized companies who wish to gain access to the Asian markets as well as for Asian enterprises from China and India that are expanding out of their respective countries. Hong Kong provides local companies with preferential access to the China market under the China Hong Kong free trade agreement, CEPA. Other enabling factors such as a free economy, political and economic stability, an efficient legal system, and a talented readily available workforce, create a favorable business climate.
Ms. Low predicted that 2010 will turn out to be another record year for Hong Kong company incorporation statistics. She said, "Hong Kong fosters entrepreneurship by introducing timely and progressive policies. For instance, the one-year waiver of business registration fees for companies from August 2009 until July 2010, led to a surge in company incorporations in August 2009 and this trend is likely to continue through 2010." She added, "The implementation of electronic incorporation of companies and a one-stop simultaneous application for company incorporation and business registration will further ease the process of company registration in Hong Kong and we expect rising company formations in 2010 as well".
Launched in 2009, GuideMeHongKong.com is a Hong Kong-focused portal that provides comprehensive, accurate and current information to global business professionals and entrepreneurs about doing business, relocation, and living in Hong Kong. To learn more details about setting up a business in Hong Kong, please refer to the following pages:
Hong Kong Company Registration Guide
Hong Kong Tax Guide
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