1. Setting Up Business is Easy: Hong Kong is one of the most efficient places in the world for incorporating an offshore company mainly because of its free market and trade policies and its free business environment. Moreover, as there are relatively fewer restrictions on investment, it is an investor-friendly business city. It has the reputation of being the world’s freest economy because there are no controls on foreign exchange transactions and corporate ownership. It has maintained this status for more than 10 years. As such, there is complete business freedom for offshore entrepreneurs.
2. Low Start-Up Cost: As per the Milken Institute’s Opacity Index, Hong Kong ranks second in five key measures, such as lower risk, low cost of doing business, corruption, policy effectiveness, and efficiency. The Hong Kong dollar is fully convertible, and it is not linked to the Yuan. An offshore company can be started in Hong Kong with very little cost.
3. Favorable, Convenient, and Low Taxes: With a maximum corporate tax of 16.5% and a maximum income tax of 15%, Hong Kong has the third lowest tax burden in the world. Moreover, there are no auxiliary taxes, such as tax on dividends, sales tax, capital gains tax, withholding tax, and individual estate tax.
4. Availability of Skilled and Productive Workforce: The workforce is productive, efficient, has good work ethics and a good can-do attitude, and is proficient in English. Hong Kong also has a liberal immigration policy, and the official language at the work place is English, making it a highly desirable place to start a business. Starting a business is also without any hassles.
5. Confidentiality of Operations: Nominee directors and a company secretary can be elected by an offshore company owner to maintain confidentiality of the company’s operations. Nominee services are normally provided by professional consulting companies.