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» » Hong Kong is a springboard for expansion into greater

Hong Kong is a springboard for expansion into greater

Бажов Е.jpgEvgeny Bazhov, head of the FBA EAC Representative Office in the People's Republic of China, was invited speak at the event organized by the All-Russian Public Organization "Delovaya Rossiya". The event was dedicated to business cooperation between Hong Kong and Russia, where Mr. Bazhov shared his vision of the situation on the promotion of companies representing the trade and production sector of the economy in Hong Kong, and spoke about the assistance provided by the Hong Kong government to foreign investors.
Speaking about the goals of opening companies in Hong Kong, Evgeny Bazhov focused on the "pros" and "cons" of such a decision. He attributed the following to the advantages:
-           optimization of expenses and management structure of financial and commodity flows;
-           safety of the parent business in case of claims of the regulator (product quality, tax, labor, partner disputes);
-           if the business is not conducted on the territory of Hong Kong itself, then the tax rate on the company's income is zero. Only the services of accounting and filing of declarations by the company are paid for; 
-           country risks are reduced. In the context of tensions between the West and Russia, the West and China, companies accredited in Hong Kong have a positive image of companies operating in a neutral territory; 
-           a convenient location for expansion in the Asia-Pacific region. Freedom of movement ("visa-free" for citizens of most countries), flights to all parts of the world; 
-           a clear and adequate position in relation to your money. The main thing is that you can confirm that they do not come from the "red sector" or "black lists"; 
-           a multinational English-speaking city, which means it is open to new things, tolerant of visitors, which does not happen in all places in China.

As for the disadvantages of creating a company in Hong Kong, Evgeny Bazhov noted the excessive high cost of living in the city. Well, and most importantly – you must have a unique product or a brilliant marketer on the staff of the company in order for the market to be interested in you.