According to a report by Borderfree, Hong Kong is experiencing a sharp rise in e-commerce and the reasons include low government restrictions on e-businesses and consumers’ knowledge of the western brands (due to extensive traveling). Hong Kong has been becoming the favorite place for online business owners to get started wherever they are around the globe. Why Hong Kong is considered as the successful ground for internet-based businesses? See some interesting stats and then a glimpse of the possible reasons behind, supporting the topic.
Hong Kong Stats
- Penetration rate of mobile subscribers: 240.2%
- Penetration rate of broadband: 83.3%
- Penetration rate of PCs for all business sizes: 75.2%
- Internet usage rate for all business sizes: 74.8%
- Hotspots established by Govt. and private sector: 31,879
- ICT spending: 6,273 million
These stats reveal clearly the bright scope of eCommerce industry in Hong Kong. The most important consideration of online business owners is investment. They think only rich people can start their online venture around the globe or from a big city or some powerful country. The name sells, it is true. Hong Kong offers a feasible option to online business owners. No heavy investment is needed. While enjoying the comforts of your home and sitting in front of the laptop, you can have the same benefits as experienced by rich and powerful businesses.
Reasons To Base Your Online Business In Hong Kong
Here is a mention of 5 reasons behind having an internet business base in Hong Kong.
- It is Cheaper To Get Started In Hong Kong!
For a growing business, cash is everything. Establishing offshore companies seems to be a daunting experience. That is not the case with Hong Kong. It is easier and cheaper to start a business in Hong Kong. There are many firms offering financial, business consulting services, and helping business owners in cheaper and quick startups. If found the right support, it may take just a few weeks to see your online business running. A valid company address and phone number are also available against a reasonable amount.
As far as the business account is concerned, you will have to come just for once and within 20 minutes, everything will be done. No big investment is needed, as there are many affordable places to live in Hong Kong for a night. If you are coming from a western country, it will cost just $2K, including the travel cost, to have a business account in HK bank.
- 0% Corporate Tax For Outbound Transactions
For an eCommerce business, having a base in Hong Kong has several benefits. All eCommerce transactions taking place outside Hong Kong are exempted from corporate tax. However, income tax is implemented on all earnings made from the business. It might be a bit complicated, but understanding the basic idea helps a lot. Americans are given fewer concessions on sales and corporate taxes. They have to pay income taxes on all earnings they have made whether working offshore.
- More Chances To Write Off Expenses Against HK Businesses
IRS considers several expenses as personal that one can write off easily. It helps new e-commerce setups, having a base camp in Hong Kong, saving hundreds and thousands of dollars annually. Whether it is an apartment rented close to the office, dinner for a client, or business travel, write off these expenses as IRS allows.
- HK Is A Global Business And Banking Leader
The base of the flourishing Hong Kong economy is safe and secure banking. It would be a sigh of relief for your internet business. Invest safely and go globally while having base camp in Hong Kong. Banks in Hong Kong are multinational and adept in managing international currencies. If the money is transferred in Euros or HK$, it is kept like that unless a client or the business owner asks for transferring into some other currency. It is also easier to transfer cash money into different currencies while having business in Hong Kong.
If you want a merchant banking account, sign up with ease. Visit HSBC head office and your HK PayPal account will be active within 2-3 days. Your company name will be displayed for your customers while checking out.
- Go Global With Little Investment
While going global, you might want to keep the expenses at the lowest. It is possible only if you have a business base in Hong Kong. It will surely give you a competitive edge over other big rivals. Become financially efficient with a smart start in Hong Kong.
If you are planning to start an internet-based business and have little investment, visit Hong Kong. Stay over there for a few days and you will surely love to pick this place as your business base.
What are you thinking? Believe it, Hong Kong is a safer and cheaper location to get started with your online business. Invest confidently and start earning. Better to hire experts for your stunning web presence like web designers, web developers, and search engine optimization specialists. With a strong web presence, you are ready to welcome a shining future in HK.
