When someone talks about Hong Kong, things like shopping paradise, temples, nightlife directly strike into mind. Apart from all these, the Hong Kong market has strong growth prospects and comes under one of the largest financial centers across the globe. Robust and dynamic nature of Hong Kong’s market allows it to move expeditiously as per the requirements of traders and maintain its status as a progressive hub for trading businesses.
Hong Kong is an open marketplace that does not demand any custom tariffs and has minimal excise duty. This special administrative region of China has major trading partners in mainland China, the USA, European Union, Japan, and India.
Here are the key characteristics which make “Hong Kong is an ideal choice for brokerage business within the world” –
- World-class infrastructure
- Free trade and investment policy
- Simple & low-tax regime
- A robust and efficient financial market
- World’s best global financial hub
- Complete freedom of capital movement
- Business-friendly cosmopolitan
- State-of-the-art infrastructure with sophisticated support services
- Excellent law and order for businesses
- No nationality restrictions on corporate or sectoral ownership
- Media is free from government interference
Now, coming back to the point, why businesses opt for Hong Kong as their first choice to get started when it comes to the trading business. Here are some reasons based on facts and stats –
Top Economy With Maximum Freedom:
Hong Kong has the world’s freest economy for your trading business and the freedom score is 90.2 out of 100 in the 2019 index. The overall score is constant from 2018, with an upraise in trade freedom, monetary freedom, business freedom, and property rights.
Business Freedom: 96.4
Labor Freedom: 89.2
Monetary Freedom 86.4
Trade Freedom 95.0
Investment Freedom 90.0
Financial Freedom 90.0
Property Rights 93.3
Its diverse financial assets classes, prudent economic policy, high degree of liquidity, market efficiency and transparent regulations are primary reasons behind the growth of the Hong Kong economy.
Strategic Location:
Hong Kong is strategically placed at the heart of the Asian continent. If you want to enter into the Mainland Chinese market, Hong Kong is impeccably located at the southeast coast of Mainland China, adjoining the Pearl River Delta. This encourages travel to and from Hong Kong to Beijing, Shanghai and other Chinese urban areas within a day.
The Hong Kong International Airport (HKIA) is the 8th busiest international airport with 100 airlines with 180+ destinations. This SAR China also has a significant port of the world in terms of tonnage of shipping, cargo handled and the numbers of travelers conveyed.
Transparent Regulations:
If you want to start a trading business in Hong Kong, its excellent law and order will benefit your business infrastructure. Property rights are efficiently imposed and incorporated in basic law, which serves in SAR’s constitution. Commercial and company laws endorsed the sanctity of contracts. There are specific rules and regulations to follow for trading, employment and other businesses.
Attractive Tax Regime:
Taxes are the prime concern for entrepreneurs who are about to set a business in Hong Kong. In this regard, Hong Kong possesses of being one of the lowest tax jurisdictions across the globe. The standard income tax rate is 15%, commercial tax rate is 16.5%. The tax system is simple and efficient. There is neither capital gains tax nor withholding tax on dividends and interest. Apart from al these, sales tax and VAT is not regulated in Hong Kong.
All these business benefits of Hong Kong make it a heaven for startups for those who want to expand their business or want to go offshore. The business benefits are matchless and ideal for any startups.
