5 Myths About Registering a Company in Hong Kong Debunked

Hong Kong’s reputation as a global business hub has led to various myths and misconceptions about its company registration process. While the city offers an attractive environment for entrepreneurs, it’s essential to separate fact from fiction. Here, we debunk five common myths about to register company HK.

Myth 1: Only Big Businesses Benefit from Registering in Hong Kong

Many believe that only large corporations gain from setting up in Hong Kong. However, Hong Kong company registration is beneficial for businesses of all sizes. With low tax rates and a simple registration process, Hong Kong supports startups, SMEs, and established businesses alike.

Myth 2: The Process Is Complicated

Contrary to popular belief, the company registration process in Hong Kong is quite straightforward. With the help of a reputable registration service, most businesses can complete the setup within a few days. The availability of online services further simplifies the process.

Myth 3: A Physical Office Is Required

Hong Kong allows virtual offices and shared spaces, which makes it easy for businesses to maintain a presence without needing a full-time office. This flexibility benefits international entrepreneurs and startups that want to minimize initial costs.

Myth 4: Non-Residents Cannot Register a Company

Non-residents are fully allowed to register and operate companies in Hong Kong. In fact, the city’s open economy welcomes foreign entrepreneurs, and there are no residency requirements for directors or shareholders.

Myth 5: High Corporate Tax Makes It Expensive

Hong Kong’s corporate tax rate is one of the lowest globally, with profits taxed at a maximum rate of 16.5%. This low rate, combined with the absence of VAT and capital gains tax, makes Hong Kong a cost-effective location for business.

Registering a business in Hong Kong offers numerous advantages, and understanding the facts is key to making the most of these benefits. If you’re considering expanding to Hong Kong, AsiaBC provides comprehensive services to streamline the process. Learn more about our offerings and debunk the myths holding you back.