I have a business in Hangzhou, China. What advantages are there to registering a company in Hong Kong? What are the disadvantages? Will a company identity in Hong Kong incur a lot of costs? Is it better for me to register my company some where like the Cayman Islands?
Registering a company in Hong Kong is fast & easy. One of the advantage, in addition of being there locally, is the low taxes (16.5%).
Do a google search on "Hong Kong Company Registration" and you'll find many services that will help you with that.
I live in Hong Kong, and had registered a company in Hong Kong before.
It is around 6-7K HKD for company to help you to do all the stuffs, as mention by Pierre, the tax rate is 16.5%. It is competitively low, compare to other country. Also, Hong Kong government have some return tax policy depends on different financial situation, but it is not a MUST.
Start a company, all the process, including the green box, the chop, bababa, it is around 6K-7K in local accounting company, please be reminded you need a company address in Hong Kong. If you don't have, you may need to apply an virtual address too. I don't know the price, but I think you can google it.
I assume you open a limited company, you need some money on accounting and auditing for the IRD department, the amount is really depends on your company size and $$$, but at least 6K HKD.Also you require a company secretary. You can employ people in Hong Kong to do so, or you can find a company as a secretary, it is around 2K HKD per year, also you need another 2K HKD to pay for the government IRD to renew your registerion.
Last but not least, you are required to have a company bank account in Hong Kong, I assume. The local bank will ask you to have at least 50K asset in the bank, but my experience is, you can talk to the accounting service company, and have some deal with the bank, you can only have 20K HKD in the bank. If you don't have enough money in the bank, no big deal, just service charge. I don't know what kind of business you are doing, but I can say that, Hong Kong have so many resources, that provided by government. They even have some funds that you can apply.
As I recalled, I am not sure. For IT company or some science research stuff, have some match funds that can apply, when you spend 2HKD, and the government will give 1HKD, you only need to pay 1HKD, and maximum is around 100K. If you want details, you can search for the "science park startup fund".
May take yo you in person, if you in Hong Kong. Just meeting some friends.