Opening a Hong Kong limited company could be the quickest and most straightforward way to realise your entrepreneurship from scratch. But in light of the current unexpected global situation, some entrepreneurs may think: Is it a good time for me to start a business (in HK) now? Shall I just pause all my plans?
Although the COVID-19 outbreak may have upset your business plan, as the old adage goes, “crisis creates opportunities”, there are many reasons why HK is still a preferable business hub at present. For example, the HK government managed to boost the small-and-medium enterprises recently by cutting various administrative fees and giving massive tax breaks to relieve the burden of startups and SMBs.
Coupled with that the most stress-free remote regime of HK company registration and compliance among many countries in the world, plus instant online multi-currency accounts are well-developed and available for you at a very cost-effective rate. We can say it is the perfect moment to set up your first HK company.
Here’re the top three hot measures that can benefit every HK business nowadays. Take a look and see if they are useful for you before the end of these perks.
‘0’ Business Registration Fees
Business Registration Fee is an administrative fee to pay when obtaining a valid Business Registration Certificate (B.R.) for a business entity to operate in HK. Typically, the annual cost is HK$2,000/year for each certificate. Within 1 Apr 2020 and 31 Mar 2021, the Government cuts this fee to ‘0’ that is applicable to every incorporated and individual entity.
‘0’ Company Annual Return Fees for 2 Years
Annual Return fee is another administrative payment that is related to renewing the Certificate of Incorporation of a HK limited company. Companies have to file an Annual Return and pay the fee by their anniversary date every year. The Government now waives this payment for two consecutive fiscal years, which costs HK$105/year originally.
100% Tax Breaks for Businesses & Individuals
The Government intends to reduce the taxpayers’ burden of Profits Tax and Salaries Tax in HK, although the Profits Tax rate is already pretty low at 8.25% on assessable profits up to $2,000,000. For the assessment year 2019/20 (covering from 1 Apr 2019 to 31 Mar 2020), a maximum HK$20,000 tax reduction is being offered to each case of Profits Tax, Salaries Tax and “Tax under Personal Assessment” respectively.
E.g., a HK company and its sole director can enjoy two sets of tax reductions, because the company’s and director’s incomes fall under two tax cases, that are Profits Tax of the company and Salaries Tax of the individual. Ceiling of each tax reduction case is HK$20,000.
Honourable Mention : Form Your HK Company & Banking Account Online
Under the current situation, your well-being is always our top priority, especially when social distancing and travel restrictions are taking place. To keep the ball rolling, you can get your HK company registered and banking account ready with AsiaBC’s remote help without paying a visit to HK.
No matter where you are, simply touch base with us and get our free Zoom video assessment to hear our prompt advice and clarify all your incorporation queries, and if all looks good to you, there is no need to visit the HK Government office to get your registration documents done because AsiaBC will handle all procedures remotely for you, and a multi-currency account can also be opened in hours for your business transactions right away.
A bit concerned about your bank account opening? We totally understand but it is not a hassle for HK entrepreneurs anymore, when the bank-alike FinTechs such as Statrys, Currenxie, Payoneer, Neat, Airwallex or WorldFirst are ready to serve you with a one-stop multi-currency account solution. These platforms can let you open your company’s accounts via your mobile screen within days instead of months, and you can also manage your money shortly within their mobile apps or online portals once your company is formed. What’s more, their wholly online business operations eliminate any risk of physical contact with any local personnel at any stage of your business development.
After going through many uncertainties, it’s time for a more positive view and make the most of the concessionary measures in the market to keep your ship sailing. By using the latest technology and smart tools, every business move can still be under your control at fingertips, making your life much easier.
Shoot us an email here for any incorporation or bank account questions and our experienced in-house specialists will lend a prompt helping hand to you. You can also book a remote video assessment today for getting our face-to-face consultation free of charge.