Hong Kong wants to regain the leadership

21.12.2012

Hong Kong wants to regain leadership

After Hong Kong was on the 2nd place in the ranking after Singapore World Bank’s Doing Business 2013, the Legislative Council asked to give reasons for the lag in Hong Kong . Minister of Trade and Economic Development described as reasons the high cost of starting a business. Thus, according to the report found that the cost of registration of the name of the company and re-establishing the appropriate license is 1.9% of the initiation of business activity in the region, which in turn is 0.6% more than in Singapore.

However, Hong Kong intends to regain its leading position in which the Government is actively taking measures. For example, the government intends to assist the industries and businesses in the region, to improve the overall business environment by simplifying the tax system, tax cuts and infrastructure improvements.

As real actions that have been taken under this policy the Minister mentioned that starting July 1, 2012, the Government abolished the practice of charging tax on the capital from local companies, thus to some extent reducing the costs of opening a business.

On the basis of:

http://www.tax-news.com/news/Hong_Kong_Urged_To_Reduce_Business_Costs____58898.html

Expert’s opinion

"Singapore rushes to regional leaders powerfully. Hong Kong has a good foundation in the form of an inheritance left over from the UK. But if it would be possible to build on this legacy under the tutelage of China?

Who is better? Who will be able to attract more funds and put them into the global financial system to the best advantage? So far in this race came forward Singapore.

If the Singapore authorities will continue their sighted policy, Singapore companies will make room on the world market of traditional tax planning jurisdiction, Cayman, Isle of Man, Guernsey, Malta and Cyprus. "

Yaroslav Lomakin ( Managing partner of “Honest and Bright”)