The Advantages And Disadvantages of moving Your Business to Hong Kong

Hong Kong has become the business hub of the world with its free-market economy and liberal tax structure. Furthermore, the city allows non-natives to get full ownership of their company, making it the ideal place for foreign investors.

It ranks among the top brass in the economic freedom and ease of doing business indexes. On top of all this, the access that it provides to the Chinese market is something no other place can guarantee. The company formation process in Hong Kong is also simple and does not require much hassle. Nevertheless, it does require lengthy paperwork; if you want to save time and avoid any future problems, consulting a company formation agency might be a good idea.

There are several advantages of moving your business to Hong Kong. However, there are a few disadvantages as well, depending on the type of business you want to start in Hong Kong.

Below, we listed some advantages and disadvantages of moving your business to Hong Kong.


  • Low Tax Rate

With a corporate tax rate of only 8.25% on profits of 2,000,000 HKD or below and a rate of 16.5% on profits over 2,000,000 HKD, Hong Kong has one of the most business-friendly tax systems in the developed world. Furthermore, there is no tax on capital gains or dividends, making it the ideal place for anyone looking to shift their business.

  • Access to China

One of the most attractive aspects of opening a business in Hong Kong is the access it offers to Mainland China. Being a Special Administrative Region of China, Hong Kong offers unique perks when it comes to trading with the mainland that you will not elsewhere.

  • Free Economy

Hong Kong is considered the most liberal economy in the world by many. With minimal government intervention, you can undertake to run your business the way you want and trade with the countries you want to. The government follows the laissez-faire model in its essence and ensures economic freedom that is hard to come by in other states.

  • Full Ownership

Another great advantage of opening a business in Hong Kong is the 100% you get of your legal entity. The laws allow you to have as many shareholders as you deem necessary; you can be the sole shareholder if you want to. You do not have to partner up with natives and can run the company the way you want.


  •  A lot of paperwork and documentation

Opening a business in Hong Kong is easy, but it requires a lot of paper and documentation. You also need to have a corporate bank account, which can turn out to be a bit tricky. Nevertheless, if you want to avoid doing all the paperwork yourself and save considerable time, you can consult a company formation agency. A good company formation agency can create a company remotely within 12 hours.

  • Expensive Real Estate

Hong Kong is one of the most expensive cities to live in; with rents going through the roof, a single one-bad apartment can cost you a significant sum of money. Everything else, from entertainment to drinks, is also a bit more expensive than you might expect.

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