Starting up a company nowadays is not that easy, especially if we want to do it in a country different from ours. Special regulations need to be followed regarding taxation and payroll. In order to make sure that we’re not making any mistakes or misinterpretations we will need the help of someone that knows the legislation well. While we could hire specialized personal to work in our firm and deal with these issues, there is always the possibility of outsourcing, getting the help of someone specialized in Hong Kong company formation and payroll solutions.
There are a few things that we should consider before starting a Hong Kong company formation. The first question that we should ask ourselves is why in the world would we want to start a business in China? After all, the market there is already pretty convoluted with many companies from around the world already present there. The easiest answer to this question is also the simplest one: since there are many companies from around the world already present there it must mean that it’s a good business opportunity. Nobody would go and setup camp somewhere if it wasn’t a good place to do so. Indeed, many companies are thriving there, and there is simply no reason for which we shouldn’t try to do the same. However, it’s not going to be all roses and peaches from the beginning. We will need the help of translators in order to deal with the China company formation documentation.
One of the most important aspects that set apart China as an opportunity to start a business from the rest of the world is certainly the population it has. Currently there are around 1.3 billion people living in China and this means that when it comes to hiring people to work in our company, we’ll have plenty to choose from. Furthermore, we’ll find that the employee salary will be much lower than in most countries, and this will enable us to have more financial stability from the start. The setback so far is the language barrier, one which is not going to be easy to adapt to by ourselves. However, with the right kind of help, China company formation is a sound business opportunity. There are many companies that seek to offer their help to those interested in Hong Kong company formation, including official state agencies like the British business council.
One of the advantages of choosing China company formation is that there are certain tax breaks that we can benefit from. This is something that we should read up about, as it can save our company quite a bit of money in the first few years. If we choose to get into one of the Investment Zones (IZ), then we’ll benefit from certain tax breaks, depending on the sector. These can range from a cutting by half of the income tax, from thirty percent to fifteen percent, to a complete tax exemption for a two year period, followed by a reduction in tax for the next three years after that. Between this and the reduced costs with the employees choosing a Hong Kong company formation plan will be a great way to kick start a business.
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