A Hong Kong company is better than a Chinese mainland company?

There are a great number of businessmen curious about whether to set up a company in Hong Kong or Chinese mainland.Let’s dive into the details from different aspects.

Hong Kong:An office is not compulsory before opening a company.The secretary company address is supportive.

Chinese mainland: Without renting an office,you are not able to provide the office lease contract and set up the company.

Hong Kong:The lowest capital HKG10,000 is acceptable and it is not required to pay.

Chinese mainland: From July 1st,2024,the company registered capital is requested to fully pay within 5 years since the date of company establishment.

Hong Kong:Without foreign exchange controls,you could make payment or receive payment without declaration.This provides great convenience for international trade and cross-border investment.

Chinese mainland: With foreign exchange controls,you have to provide all legal documents to pay or receive foreign dollars.

Hong Kong:If the company profit lower than HKG 2 million, the tax is 8.25%; If the profit more than HKG 2 million, the parts exceeding HKG 2 million will be 16.5%.

Chinese mainland: Diversified tax like the Profit Tax,Value Added Tax,etc.For small scale tax payer, VAT is exempted to 1% if less than 5 million RMB in consecutive 12 months.

Hong Kong:There are high requirements to apply for work visa in Hong Kong like renting a physical office,hiring local Hong Kong staff,bachelor or above degree,sufficient financial proof,etc.

Chinese mainland: Comparing with work visa application in Hong Kong,it is more easier and cost-effective to apply for work visa here.

Therefore,where to open a company is up to your requirements.

With nearly 20 years experience,E-SNAVS is your good partner and consultant to expand your business in China.Please scan below QR code for free consulting.