Why Foreign Firms Often Choose Hong Kong As Their Business Headquarters in Asia?
Posted in Cmargin Trends, Small Business on May 24th, 2010 by Admin – Comments OffHong Kong is a popular hub for international firms keen on setting up businesses in Asia. Its’ physical and political proximity to China coupled with modern infrastructure, internationally accepted and transparent legal system based on English law and lower tariff structure have rendered it into one of the world’s leading financial and business centres.
According to an annual survey conducted by Invest Hong Kong and the Census and Statistics Department, the region situated on the southern coast of China is sought after by multinationals and inland companies looking to expand their business operations in East Asia. The survey identifies new investment trends wherein international firms have made Hong Kong a focal point for their, both regional and worldwide operations while inland companies from China have relocated here to benefit from numerous business opportunities.
A versatile work culture adept in both English and Mandarin languages makes for easier transactions saving companies time and translation costs in the process. Besides, the free floating currency of Hong Kong dollar, the absence of good and services tax, and a flat profit tax rate of 17.5 percent for company operations based in Hong Kong translate into hefty financial gains for multinational corporations. Also, the Hong Kong based companies gain from the provision of re-invoicing. read more »