Business minded person at all times sets the location as an integral part of triumphant business establishment. They consider the statutory requirements, the needs of the people residing in a particular place, government interventions, tax rate, economy and many others.
Some countries can expose you to a flexible environment wherein your operations are not so limited by the existing regulations. However, the success of one’s business is assessed in depth with its ability to generate sales, for example, and to meet the needs of their perspective customers. On the other hand, situating your company in some countries could render you the most feasible ad profitable results but exposes you so much to the payment of large taxes.
Enumerated below are the reasons why it would be wiser to choose Hong Kong whenever you are in the crossroads of deciding where to place your business:
• Corporation in Hong Kong is relatively easier and cheaper. Compared to other countries, choosing Hong Kong to be your base exposes you to lesser expenses and helps you save more time because of ease and efficiency of process.
• Zero percent Hong Kong corporate tax rate applies for transactions outside Hong Kong.
• Account more expenses of the company. Some countries follow strictly the accounting entity concept. Therefore you cannot account simple expenses you have done for your company such a transportation expense you have incurred in doing business matters, the expenses you have incurred when dealing with the client and even the house you have rented to perform business operations better.
• Hong Kong has a well established name for banking and business.
• Globalization and more competitive advantage against other existing corporations.
It is, indeed, favorable to you company to be based in Hong Kong because of the advantages set forth. However, after the establishment, the major challenge would be the attainment of acceptance of your business of people residing or staying in Hong Kong. The following are the essential matters to be inculcated in your mind whenever you are dealing with them for business purposes:
• Business culture. A little research and reading of some articles about this could help you.
• Meeting and greeting. Proper ways of introducing yourself and your company should be observed. Yes, Chinese people ‘bow’ when meeting or greeting other people. As a non-Hong Kong national, you may not do the same for a simple handshake would do.
• Entertaining them. Different people are found with different culture and values. Some things may be pleasing for you and in their point of view, it might be unaccepted. Having knowledge about this could help you much in doing business in Hong Kong.