Hong Kong is an important destination for foreign direct investments and the increase in such investments is expected to continue. One business option taken into consideration by foreign businessmen is opening a holding company in Hong Kong.
There are many advantages that make the city a valuable location to base a holding company and our lawyers in Hong Kong can help you know everything about the incentives, favorable tax rates and other factors that can help you while doing business in Hong Kong.
A holding company in Hong Kong is a company that will own the outstanding stock of another company or companies. It will not produce its own goods or services but will own shares of other companies. From this point of view, the Hong Kong market offers a wide range of investment possibilities to the foreign investor who wants to purchase company stocks.
Find out more about holding companies from the following video presented by our lawyers in Hong Kong:
Table of Contents
The advantages of opening a holding company in Hong Kong
Some of the most important factors that need to be taken into consideration when choosing the location for a holding company are:
– low incorporation costs;
– good tax rates;
– ease of listing and raising capital;
– good government policies and stable economy.
Hong Kong has no withholding tax on dividends and interest and only profits produced in Hong Kong are taxed according to the Hong Kong taxation principles. Income received by a company in Hong Kong from outside the city is not subject to tax. This is an important advantage for holding companies and one of the main reasons why foreign investors choose Hong Kong as a holding company location.
Our Hong Kong lawyers can tell you all about the taxation system and give you advice for legal tax minimization.
Hong Kong as a business destination
Besides meeting all of these criteria, Hong Kong is also an international financial center that attracts international groups and international companies willing to open branches in Hong Kong. Also, the city’s legal system, based on the English Common Law system makes it easier to understand the legal requirements and legal procedures.
Our law firm in HK can offer you complete company incorporation services and counselling for investing in Hong Kong. You can contact our attorneys for more information.