Investors Look To Hong Kong, Asia's Most Competitive Zone

Hong Kong is the Asian gateway to global business. As a special administrative region of China, entrepreneurs and investors flock to Hong Kong Company Formation as an investment strategy and to set up businesses because of its strategic location, stable political economy, and superior incentives for business operations.

Ranked as Asia's most competitive location to do business, according to the World Competitiveness Yearbook 2011, it is also the third-largest recipient of foreign direct investment (FDI) in the world, per UNCTAD's 2011 report recently released. This high influx of FDI can be partly attributed to the following factors.

i. Stategic location: Centrally located and bearing excellent ports, airports and docks, Hong Kong gives investors direct access to international networks and resources. Considered to be the gateway to China, it boasts a free economy and multi-national business environment that provides an essential link to China's economy which is a lead driver in today's business.

ii. Low-tax: Hong Kong is known to have the third-lowest tax structure in the world. While there is no tax on sales, no capital gains tax, and no individual estate tax. Corporate tax is capped at 16.5% and income tax at a lower 15%. Investors further benefit from tax laws, which allow all profits to be repatriated, as there is no withholding tax on dividends remitted abroad.

iii. World manufacturing hub: Access to the Pearl River Delta, the world's largest manufacturing region and the most economically developed region in mainland China, this region acconts for 10% of China's GDP and approximately 30% of China's exports. Not only do investors benefit from capital, skills, technology, market knowledge and mature business facilties, but also from the low-cost manufacturing and valueable cost-cutting processes.

iv. Free Trade Agreements: The Closer Economic Partnership Agreement (CEPA) grants easier access to mainland China and enables duty-free export, reducing financial and ownership restrictions. This is only one of many FTAs Hong Kong holds with the rest of the world.

v. Liberal immigration policies: These have been designed to attract professionals including entrepreneurs and investors. They are four different and flexible kinds of visas that foreigners may choose from; and family-friendly where the investor's spouse and dependent children are also welcomed.

Investors appreciate that there are no foreign ownership restrictions with Hong Kong company formation , with company directors not needing to be resident. There is no minimum for capital requirements and credit is more easliy available than in other economies. Hong Kong company set up time varies from 1-4 days. Opening a Hong Kong corporate bank account costs vary, but are quite low and can be opened for US$260. Investors feel safe conducting business in Hong Kong which provides the highest level of protection in the world for its investors and strictly enforces contracts.

A complete view of the ease of business can be seen in this Hong Kong Company Registration Guide.

Article Source: http://www.articlesbase.com/business-opportunities-articles/investors-look-to-hong-kong-asias-most-competitive-zone-5159531.html

Lawrence is a management and marketing consultant with a broad range of experience in providing corporate services, specialising in company incorporation, international banking and effective tax planning.