For many years now, Hong Kong has been recognized worldwide as an investment center featuring renowned skyscrapers. People fail to acknowledge the fact that it also provides an array of prospects for Malaysian businessmen who want to explore beyond boundaries. Malaysian companies find a perfect destination in the form of Hong Kong due to its favorable strategic position, the favorable political situation prevailing there, and the flourishing business atmosphere. In this article, we shall discuss why it is advantageous to register a Malaysian company in Hong Kong as well as the immense opportunities it avails.
Why Incorporate in Hong Kong?
Hong Kong being a special administrative region of China and having an excellent reputation from attracting global businesses make Malaysia’s companies look in this direction for expansion. Here are some compelling reasons why Malaysian companies should consider Hong Kong.
Strategic Location: Situated at the heart of Asia, Hong Kong is strategically positioned to provide a jumpstart to both its vast Chinese market and other Asian markets. Being close to mainland China, this provides direct entrance to one of the leading and fast growing consumer segments in the entire planet.
Political and Economic Stability: This explains why Hong Kong has enjoyed political stability as well as a strong legal framework that secures the rights of business entities. Foreign investors are attracted by this stability and a free market economy.
Global Business Hub: Hong Kong has a long standing reputation as one of the world’s leading commercial centers. Due to its conducive business environment and excellent infrastructure, it is among the top countries in global business indexes.
Tax Benefits: Companies in Hong Kong have low tax rates due to simple yet competitive tax structure, thus making it one of the top destinations for profit and tax optimization oriented firms.
Regulatory Framework
Incorporating a Malaysian company in Hong Kong involves a straightforward process:
Company Registration: Firstly, you’ll have to name your company appropriately, nominate a company’s secretary, and register your company’s address located in Hong Kong. The Memorandum and the Articles of Association need to be prepared, then submitted to the Hong Kong Companies Registrar.
Business Registration Certificate: The government of Hong Kong requires that all companies operating within its jurisdiction be registered with the Inland Revenue Department and issued certificates known as Business Registration Certificates. This certificate is renewed annually.
Open a Bank Account: The last step will involve the opening and maintenance of a business bank account in Hong Kong. You must opt for a bank which is tailored to address your unique business requirements.
Taxation: Taxation in Hong Kong is based on a territorial tax system with income earned inside it. There are also no capital gains or value-added taxes, as well as a low corporate tax rate.
Access to the Chinese Market
The ability to reach out to the China market, as well as other Asia Pacific markets make Hong Kong incorporation one of the biggest advantages. Hong Kong being located closer to Mainland China, plus their understanding of Chinese business tradition makes it easy to do business in the expanding economy of Mainland China. By leveraging Hong Kong as its stepping stone, the Malaysian companies in question can access a huge market without any obstructions.
Getting Started
If you’re considering incorporating a Malaysian company in Hong Kong, here are the basic steps to get started:
Seek Professional Assistance: You should always seek professional advice for Hong Kong company formation. They will be able to take you through this step, as well as make sure you remain within all the laws and regulations.
Choose the Right Business Structure: Choose the best business form like a private company, branch office or a representative one.
Legal and Financial Requirements: Make the vital paperwork, comply with the law, and establish your business bank account.
Business Plan: Come up with an elaborate business plan, which specifies your intentions of penetrating the Hong Kong market.
Conclusion
There is no doubt that by availing of opportunities, political stability, and strategic location, Hong Kong becomes a lucrative prospect for Malaysian firms seeking a market outside Malaysia. Opening of a Malaysian company in Hong Kong is an opportunity for the business environment, tax benefits and access to the Chinese markets. Although aspects of the culture and language might exist; the anticipated benefits are more worth than a challenge. It’s, perhaps, an opportunity worth considering by the Malaysian businesses looking forward to expanding into one of Asia’s most vibrant cities. Need assistance with Malaysia company incorporation in Hong Kong? Talk to one of our experts.
