Asian region is a BIG market. Expanding to the region is a logical step for an expanding business that views Asia as an ideal market for its products and services. One of the issues you need to address when you're planning for your expansion is the headquarters for your business operations.
When deciding on your Asian headquarters, the options are seemingly endless. However, if you're looking for one of the best locations, Hong Kong always comes up on top in almost any criteria for choosing a HQ. Indeed, Hong Kong has gained massive traction in recent years, attracting companies such as Samsung, Apple, Starbucks, and Amazon to the city.
In this article, we’ll delve into the reasons why you might want to consider placing your headquarters within Hong Kong.
1. Hong Kong has a stable, growing economy
Hong Kong doesn’t necessarily have the fastest growing economy, but it has shown a steady solid increase year over year. Since 2014, the city has seen a 2.3% growth rate, and all signs point to this growth continuing. When it comes to placing your headquarters, you want to make sure you’re choosing a city that will continue to grow and offer the most promise for your company.
2. It will the world’s most wealthy region by 2019
Hong Kong had the fastest increase in overall wealth in 2016. By 2019, Asia in whole will likely pass up North America as the world’s wealthiest region. It’s interesting to note the increases in wealth happening throughout the region, specifically in Hong Kong. Private wealth in Hong Kong is projected to reach nearly $80 trillion by 2021.
3. It’s beneficial if you sell to China
Geographically speaking, Hong Kong is very close to the Chinese border. If your company intends to sell to China, then setting your HQ in Hong Kong offers advantages that you won’t want to pass up. Traveling back and forth to China is cheaper when you’ve got a HQ in Hong Kong and sending your products there will be likewise cost-effective. Plus, your business with China won’t be taxed if your HQ is in Hong Kong.
4. Hong Kong has a low tax rate
Because of the area’s government is largely supported by land value, Hong Kong has a low tax rate that is enticing to businesses. Also, if you’re based in Hong Kong, you can write off travel and accommodations for guests you bring in. While Hong Kong isn’t really considered a tax haven, their low tax rate can be implemented in a tax strategy confidently because land values continue to increase.
5. Setting up an offshore business in Hong Kong can be done in just weeks
Offshore businesses are flocking to Hong Kong for the many advantages the city offers, but perhaps the best reason is that they can be set up in a matter of weeks. Hong Kong makes it relatively easy for offshore businesses and startups to set up quickly.
6. Setting up an online company can cost less than $1000
If you’re setting up a physical HQ in Hong Kong for your online business, you’ll be spending a chunk of change - more than you’d likely pay in other areas. Of course, it’s worth every penny.
How much is the cost for a company setup in Hong Kong? You can completely set it up for less than $1000.
Keep in mind, though - financial accounts must be opened in person, so you’ll have to consider the cost of travel.
7. Hong Kong loves innovation
The culture of Hong Kong has changed the look of their economy greatly, and it’s mostly service-based and knowledge-based. Hong Kong loves innovation, though, and startups with dynamic, pioneering products are welcomed with open arms.
8. The city is a financial mecca
Banks all over the world have launched wealth management centers inside Hong Kong, and with wealth on the rise, that trend is only going to continue. If you’re a business looking to grow, Hong Kong poises an excellent choice for your HQ because it’s got the financial infrastructure to seamlessly support your needs.
9. Hong Kong has the second fastest internet in the world
International companies need fast internet, and the faster the better. Hong Kong offers another strategic advantage in your search for the perfect HQ location: it’s got the second fastest internet in the world, only behind Singapore. In fact, average download speeds are over 100 Mbps.
Conclusion
Whether you’re a startup or a growing company, Hong Kong offers several benefits as the home of your HQ. It’s easy for business affiliates to travel in and out of, the economy is stable and growing, and the city offers everything you need to cultivate a strong company presence.
As a harbor city, getting products in and out is relatively easy, and access to China is virtually unbridled. Plus, if you do business in China with a HQ in Hong Kong, you’ll be rewarded with a 0% tax rate!
If you're interested in exploring your options with Hong Kong, you can consult with us. It's free, and we can give you objective recommendations - including insights, pros and cons.
JUL
2018
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