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Archive for December, 2009

The Reasons for Making an Investment in Hong Kong

Monday, December 28th, 2009

Free and Open Economy

In the 2009 Index of Economic Freedom, Hong Kong has once again been placed first, the fifteenth consecutive year it has held this position. The index is an annual survey conducted by The Heritage Foundation and The Wall Street Journal that compares 183 countries in relation to 10 ‘freedom’ variables including business freedom, investment freedom, property rights, freedom from corruption and more. Economic freedom is still largely regarded as an important key to growth and prosperity. As free trade is the life-blood of Hong Kong, Hong Kong embraces globalisation of trade and services. There are no barriers to trade – such as tariffs and quotas – being put in place, and there is no foreign exchange controls or restrictions on both inward and outward investments. Additionally, the Hong Kong Government also does not place any nationality restrictions on corporate or sectoral ownership. This makes company formation in Hong Kong an attractive and relatively fuss-free option.

Gateway to Mainland China

Situated at the mouth of the Pearl River Delta (PRD), Hong Kong is strategically located for trade with Mainland China. China’s rapid economic development of increasingly competitive industries has created more opportunities for even greater economic expansion. With the Closer Economic Partnership Arrangement (CEPA) that took effect in 2004, Hong Kong can now benefit from additional and exclusive Mainland market access. Company incorporation in Hong Kong would mean that the vast market of Mainland China is readily accessible. Mainland China is now Hong Kong’s largest trading partner and they are both key to one another’s economic success. Hong Kong is the largest source of overseas direct investment in Mainland China.

Low Taxes

At 16.5%, Hong Kong’s corporate tax rate is among the lowest in the world. Hong Kong adopts a territorial basis principle of taxation, where only profits which have been sourced in Hong Kong are taxable. The effective tax rate is even lower after taking into consideration tax exemptions and deductions such as Industrial Buildings Allowances on Industrial Buildings and Structure, Commercial Buildings Allowances on Commercial Buildings and Structures, Plant and Machinery Allowances, approved Donations and other allowable Deductible Expenses in accordance to Hong Kong’s Inland Revenue Ordinance.

In addition, there is no capital gains tax in Hong Kong and no with holding tax on dividends and interest or collection of social security benefits. There is no Value-Added Tax (VAT) in Hong Kong. The limited tax base, coupled with very low tax rates, makes Hong Kong’s tax incidence one of the lowest, if not the lowest, among developed economies, and therefore, Hong Kong company formation makes for a very tax efficient business entity. In short, with its free and open economy, low taxes, and strategic position as a gateway to Mainland China, Hong Kong is abundant with vast opportunities for investment and growth. Investing in Hong Kong to get the best conditions for your business abroad.

Instructions to Droppship from Hong Kong

Monday, December 28th, 2009

Venturing in the dropshipping business is truly promising. That is the reason why you should consider Hong Kong as a viable dropshipping partner resource. Hong Kong is a strong location to look for a dropshipping partner because there thousands of manufacturers, wholesalers, and suppliers in this city who are willing to partner with retailers from anywhere in the world. Therefore, it is necessary for them to find the ways to dropship their products from Hong Kong.

All you need to do is advertise the products from the internet and contact your drop shipping partner once you received a customer order. The packaging and the delivery of the shipment is also taken care of by your drop shipping partner so you save a great deal not just on bulk purchasing of the products but also on overhead costs.

For instance, you won’t have to lease a shop or a warehouse to store your products. Get Started Now So how can you start dropshipping from Hong Kong? Of course, you would need to find a reliable wholesaler or supplier from Hong Kong to partner with. You may think that searching is difficult but using a trusted dropship directory, you should be able to find a dropshipper from Hong Kong without hassle.

Don’t forget to consider your target market before deciding on which product to retail. The basic factors to consider are your target market, their needs and demand, your competition, the price of the goods including the delivery cost you’ll have to charge to your customer.

Furthermore, you’ll want to make sure that you’ll be selling products that are of the highest quality if you want to build a good reputation in the market. A legitimate dropshipping partner should ensure that their products are not just of excellent quality but that they provide great service as well, particularly with regards to the shipment of the orders.

You’ll want to make sure that your customers will receive their orders right on time and that the products they bought will reach them in good condition. Take note that some dropshippers included in the directory may be fake or may disguise themselves as wholesalers or manufacturers.

Some so-called drop shippers may try to take advantage of you by requiring excessive upfront costs and recurring fees. To avoid making the wrong choice, see to it that you’ve done extensive research about the company’s background and track record.

Dropshipping in Hong Kong is a good way to spread your products to the outside world. Follow the upper instructions can enable you to get started dropshipping from Hong Kong correctly.