Monday 16 November 2015

International Companies Choose Hong Kong for Various Reasons to Expand Operations

Hong Kong has become a famous center for international companies that are interested to setup their businesses in Asia. Its political and physical proximity to joined with latest infrastructure, transparent and internationally accepted legal system support by English law and reasonable tariff structure make Hong Kong one among the leading business and financial centers in the world. An annual survey states that Hong Kong has become one of the most wanted cities for inland as well as international companies that are interested in expanding their businesses in the eastern part of Asia. The survey reveals new trends of investment wherein offshore companies focus on Hong Kong for expanding the business, both international and regional operations. On the other hand, Chinese companies have been relocating to Hong Kong for benefiting from the various business opportunities.
Hong kong company registration
What makes Hong Kong a most preferred location for registering offshore companies

A flexible work culture skilled in both Mandarin and English languages results in easier transactions that save firms translation costs and time in the process. In addition to this, the free floating Hong Kong currency, the absence of services and good taxes and low tax rates for offshore companies based in Hong Kong lead to heavy profit for international companies. Also, companies that are based in Hong Kong can gain from the re-invoicing provision.

Why investors pick Hong Kong for establishing their firms

Re-invoicing involves global trading between seller and buyer companies through a mediator firm based in areas that are free from export and import processing. Companies which want to trade services and goods from overseas to China can setup a mediatory company in Hong Kong that invoices higher selling or buying price than actual costs. Zero or reduced profit margins recorded by mediatory companies allow companies to retain maximum profits whilst reducing profit taxes. The monetary gains are considerable, especially for international companies that are keen on services and good on Chinese markets. This is only a small amount of information and there are more details about Hong Kong company registration on the web.

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