If you are looking for a country in Asia where you can invest and open a business or manufacturing plant, then HongKong can be the best option for you. There are many advantages and benefits for companies which want to do business in Hong Kong. When you take a list of those advantages and benefits, you will understand the reason why you find many multinational companies present in such a small economy in Asia. Although Hong Kong is a small island and it was part of China till a few tears ago, the economic and investment policies of Hong Kong are very different from other Asian countries.
Advantages of doing business in Hong Kong or doing business in Asia-
- The economy in Hong Kong is based on the principles of free trade and free markets. It means that the government intervention is very less or is limited to aminimum
- There are no restrictions on the foreign investment like the other countries like India and China.
- The taxation system in Hong Kong is also very simple and easy to understand and follow. Taxes are very low and there are no capital gain taxes or VAT or sales tax which means that income and profits will be very high as compared to other Asian countries.
- Hong Kong has excellent infrastructure and, therefore, setting up a business is very easy and without any serious hassles with law.
- Hong Kong makes it really easy for you to open a business.You can open a business in Hong Kong in just two weeks. This ease of establishment is not found anywhere in Asia.
- The Government is Hong Kong is politically very stable and this provides a stable business policy for foreign companies who are interested in setting up new businesses in Hong Kong.
- The anti-corruption policies of Hong Kong are very strict and therefore, anyone can do the business if they follow all the legal procedure according to the letter of thelaw.
- Hong Kong is strategically located at the center of Asia and, therefore, it is perfect as a transportation hub for all businesses.
- It is easy to find a workforce which is educated and trained. You will find that majority of the youth are skilled professionals with anexcellent grasp of the English language.
As you can see that there are many benefits of doing business in Hong Kong, but with these plus points, there are some negative points in Hong Kong too. The size of Hong Kong market is small so there is no big scope for growth in Hong Kong itself, but you can reach to other Asian countries through a base in Hong Kong. Hong Kong is like an island where space is low and, therefore, the traffic may get slow which may affect the business transport. However, the infrastructure in Hong Kong is so developed that you may not experience any difficulty. If you take a look at the pros and cons, you will find that doing business in Hong Kong is the most profitable and easy option if you compare it to other Asian countries like China.