From a Hong Kong-Only to Global Business

Look! Every investor is headed to Hong Kong. Sure the jurisdiction is awesome, with its pro-business policies, but there must be something more than that. Hong Kong’s population is only 7.5 million people, while China has over 1.4 billion and Indonesia has 253 million. This is not just about the market and we are going to tell you the reason why Hong Kong is attracting investments like a magnet: it is a perfect springboard for businesses to go global

After registering a company in Hong Kong, the doors for further growth fling open and it is only a matter of time before it becomes a multinational. So, what exactly do you need to do to thrust your brand into a multinational? Here are some useful routes to consider. 

Demonstrate Tax Substance in Hong Kong 

If you want to grow in the regional market, one MUST do things is to demonstrate tax substance. This means that your company’s operations contribute significantly towards enhancing the economy of the island. Demonstrating tax substance will convince the Internal Revenue Department (IRD) to issue your business with a Tax Resident Certificate, which is crucial for international trade. So, here are some activities to help you prove tax substance: 

·      Pay all the required taxes on time

·      Ensure to have all the required licenses

·      Have a physical office and staff in Hong Kong

·      Hold board meetings in Hong Kong

·      Cooperate with other businesses by entering into business agreements

Take Advantage of the Hong Kong Trade Agreement with China

You might have heard the saying that “Hong Kong is the gateway” to Mainland China. It is true. Companies registered in Hong Kong are able to send most of their products to China duty-free or at reduced rates. This means that once in Hong Kong, China is also within reach. All that you need is to identify direct buyers or partner with Chinese enterprises to buy your products. Let’s take an example here. 

If your Hong Kong company deals with raw materials that are in high demand in China, you might be able to sell them directly (check this link). So, cast your eyes further or open a branch office in China to search for more markets. Whether you deal with industrial or consumer products, China is waiting to trade with you. 

Use Hong Kong Company to Reach the Rest of the Globe 

We started with China because it is only a step away. You should also take advantage of the bilateral trade agreements between Hong Kong and other countries around the globe. For example, Hong Kong has a free trade agreement with New Zealand, the EU, and ASEAN states. This implies that, just like China, accessing these markets should not be a big challenge.  

Work with an Agency of Experts  

Even with the above attributes, we must say that some businesses still find it challenging to go global. They either stall or die a short while after company registration in Hong Kong. However, yours does not have to end up that way if you use experts to help with expansion. Sure, the expert will come at a cost, but this will be very small compared to the mammoth profit your firm will get for going global. 

Having helped other high-flying enterprises, the experts will easily tell you what works and what does not. They can also assist you with other important tasks, from filing tax returns to payroll management. Why walk alone and risk stalling while experts are only a click away!

In Hong Kong, your business has better chances of success because of the supportive administration. So, like other enterprises, you can also use the jurisdiction to fire your business to success. Make sure to bring on board the right experts to help you for faster growth and success.