If you have a business and are looking for ways to expand into Asia, forming an offshore company is a viable possibility. Of course finding the perfect country to base your offshore company in can be tricky; unless you do all your research and know your facts beforehand. Fortunately there is a country in Asia that is the perfect partner when it comes to offshore company formation; this country is Hong Kong (HK) – also referred to as the territory.
When it became one of The People’s Republic of China’s two special administrative regions, it also increased its strategic value as an entry point into the various Asian Markets.
The territory is one of the world’s leading financial centers with an emphasis on a capitalist service economy that is characterized by some of the best conditions for global trade and finance. There are numerous benefits to a Hong Kong company formation but the most prominent amongst these is that this country is strategically located in Asia, and that it serves as a gateway for international companies wanting to enter the Asian markets and is also a gateway to the biggest Asian market of them all – China.
The Advantages of a Hong Kong Based Company
Besides its perfect geographical location in the heart of Asia, there are many advantages to forming a company based in Hong Kong; some of these advantages are:
- It has a sound and reputable legal system
- It has a world class infrastructure
- It has a highly educated work force
- It has well developed capital markets
- It has a simplified tax system characterized by low taxes
- It is a politically stable society
- Its currency the HKD, is one of the most traded global currencies
- It has a world class communications infrastructure
- It has one of the highest per capita incomes in the world
What Makes Hong Kong A World Class Business Location
Strategic location not withstanding, HK in itself is a world class territory and has received numerous awards for its superior proficiency in world finance. Among these awards are:
- The World Bank’s rankings for one of the world’s best places for doing business.
- The Global Financial Centre Index ranking as one of the most competitive global financial centers.
- One of the highest ranked “e-ready” cities in the world.
- One of the most competitive economies in the world.
The Human Development Index ranks it amongst the highest in the world in four tiers of human development, and more importantly, if you are looking to form a company there, you will want to know that for the past 14 years it has ranked first, out of 157 countries, in the Index of Economic Freedom. The Index of Economic Freedom is an annual index that measures the degree of economic freedom in the world’s nations. This makes it an extremely attractive proposition for the location of a new company.
How Do You Qualify For A Hong Kong Based Company?
Obviously there are certain standard requirements that have to be met before you can qualify for a HK based company; however, these requirements are generally quite simple and easy to meet. The main requirements are:
- There must be at least one shareholder and/or director who is over 18 years of age.
- At least one permanent resident from the country should be a member, or there should be an authorized company based in the territory representing and acting as the legal secretary for the applicant.
- There should be one registered address there.
If you are looking for ways to enter the Asian Market, then look no further than Hong Kong; not only is it the perfect gateway, it is also a tax haven and makes good business sense.
Get all the information you need about company formation and Hong Kong company formation, and make an informed decision.