Hong Kong Business Formation Statistics 2019
At this moment, investors and entrepreneurs are preparing to set up their business overseas – especially in areas like Hong Kong. To set up a business in a place other than one’s own hometown one must know all the statistics and profits which the place has to offer.
Companies Registry releases Hong Kong business formation statistics for 2019
As per recent statistics, the number of local companies registered under the Companies Ordinance adds up to 1,380,185 by the end of 2019. As stated by the statistics released by the Companies Registry, The total number of newly registered local companies was 124,741 in 2019 – of which 47,486 were incorporated via an online process.
Statistics for 2014 to 2019 – Local Companies Incorporated
|Total No. of companies incorporated||141,659||139,209||144,883||160,229||151,739||124,741|
As the first jurisdiction in the Asia-Pacific region to have achieved an overall compliant result in the current round of FATF mutual evaluation, Hong Kong has continued to implement the licensing regime for trust or company service providers regarding Hong Kong company registration. For the licensing of trust or company service providers, the number of licensees reached 6,839 by the end of 2019 out of which 824 new licences were granted in 2019.
The total number of registered non-Hong Kong companies increased by 12.96% year on year, reaching 12,494 by the end of 2019. Newly registered non-Hong Kong companies increased by 67.64% from 1,193 in 2018 to 2,000 in 2019. These companies have newly established places of business in Hong Kong and are registered under the Companies Ordinance.
Statistics for 2014 to 2019 – Registered Non-Hong Kong Companies
|No. of companies newly registered as having a place of business||811||894||874||1,028||1,193||2,000|
|No. of companies ceased to have a place of business||445||490||920||578||567||567|
|Total No. of companies remained registered in the Companies Register||9,624||10,029||9,983||10,434||11,061||12,494|
Notifications of payments and releases secured for registration decreased from 24,634 in 2018 (17.41%) to 20,345 in 2019. In 2019, a total of 198 prospectuses were registered, which is a decrease of 21.12% compared to those in 2018.
The total number of documents delivered for registration in 2019 is 3,340,912, decreased by 7.01% compared to those in 2018.
A total of 5,141,520 searches of document image records were conducted using the Registry’s electronic search services in 2019, an increase of 2.59% from the number in 2018.
The Hong Kong government’s efforts to combat money laundering and terrorist financing had been recognized in the Mutual Evaluation Report of Hong Kong published by the Financial Action Task Force (FATF) on September 4, 2019. Wherein, Hong Kong’s anti-money laundering, and counter-terrorist financing regime were assessed to be compliant and effective.
Why register your company in Hong Kong?
As one of the freest economies in the world, Hong Kong is renowned for being a leading commercial hub for setting up new business entities. Many investors and business owners are choosing to set up their businesses in Hong Kong. The primary reason behind this trend is to enter into the international market and to benefit from a tax-friendly jurisdiction. Hong Kong company registration is a hassle-free process.
Hong Kong is a prestigious business location and offers an ample number of advantages for those who are looking to launch their new businesses or willing to expand their already existing ones in this place. Here are some significant advantages for Hong Kong Business Formation :
An International junction
Hong Kong is strategically located near China, which plays a vital role in accessing the Chinese market. Located n the heart of Asia, with its proximity to the mainland makes Hong Kong the perfect connecting point between the West and East.
The combined understanding of both the Eastern and Western cultural mentality and businesses will prove to be beneficial in a lot of ways than any business owner can expect for their business entity.
Easy Tax and policies
Taxes and policies are the primary concern for any entrepreneur who intends to set up a business in a given jurisdiction. Hong Kong practices are low-rate and have a straightforward tax system.
It has a Personal income or Salary Tax, starting at 2% and reaching up to 17% above HKD 132,000. Hong Kong also operates a territorial tax regime.
Corporate Tax (also known as Profits Tax) is fixed at 8.25% on profits up to HKD$ 2,000,000 (approx. USD$ 256,000), and 16.5% on profits thereafter for limited companies; and 15% for unincorporated businesses (i.e. sole proprietorship, limited partnership). Furthermore, there is no need for any capital gains tax and there is no trade tax in Hong Kong.
World’s Freest Economy
Hong Kong comes under the category of one of the world’s freest economies. Hong Kong Business Formation also gives benefits such as
- the stable banking system,
- almost no public debt,
- a robust legal system,
- sizable foreign exchange reserves
Business Structure, Support & Assistance
Hong Kong’s business formation is easy and straightforward. Before opening a company, an entrepreneur must choose a business structure. To enjoy the maximum benefits of setting up a business, a limited liability company could be your best choice because of the advantages associated with it. The limited liability company of Hong Kong is also allowed to register a WFOE in Mainland China, which is an important bridge to expand a business.
Hong Kong has the best business support and assistance. A remarkable number of associated programs have been authorized by the Hong Kong government and the private sector to help your company grow and develop in every aspect of your business.
How Startups help you?
If you, too, want to set up a company in Hong Kong, then we at Startupr can help. To ensure you stay updated with all the rules and regulations of Hong Kong, you need to hire a professional company secretary, like Startupr. We are dedicated and experienced in setting up companies for our clients from all over the world.
Startupr will assist you, not only in your Hong Kong company registration, but also the regulations or requirements for all business natures. We have clients from all over the world from industries of various sizes and backgrounds, including the services industry, consulting services, IT sectors, and many other services.
Startupr strives to provide excellent services to our customers and help them start and grow their businesses. Some of the qualities include Transparent Pricing, 100% online, creative and flexible approach, proven honesty & reliability, and unwavering focus on client satisfaction.
Our clients come from all over the world from industries of various sizes and backgrounds, including the services industry, consulting services, IT sectors, and many other services. We ensure that we prepare and manage each of the company’s filings to suit the needs of our clients.
Also, if you are dreaming of managing all the operations of your business in one place and want a convenient online software to start a Hong Kong business formation efficiently, then Startupr’s system – Backoffice is the perfect option for you!
Our Backoffice helps you keep track of all your company’s operations in one place i.e. checking the status of your companies, filing of different returns or reports, business address and mail forwarding support, business registration certification renewal, company restructuring, etc.
Last but not least, our years of experience will surely be an add on to your Hong Kong business formation. Choose your business entity as per your requirements, and incorporate a company in Hong Kong. Please feel free to contact Startupr whenever you need any help or advice for setting up a company in Hong Kong.