1. The lack of a clearly defined investment plan
A good investment plan
, combined with a solid portfolio and a fail proof strategy
is what would help most investors in Hong Kong
. But not all start with clear investment goals
in mind. One common mistake is to not plan ahead and set a time-frame for growth, possible risks and possibility to invest more assets in the future. Investors can rely on the help of a professional consultant who will help tailor a perfect business plan
– but they will also need to commit to it. If you want to open a company in Hong Kong
our agents can help you with this step.
2. Not knowing about the benefits of the double tax treaties in Hong Kong
As many other countries in the world, Hong Kong has signed numerous double tax treaties
that strengthen its economic relations and bring benefits for foreign investors. These agreements offer preferential withholding tax rates
and apply for tax residents of one or both countries. This way, investors who produce a type of income in Hong Kong will only need to worry about it being taxed in the Special Administrative Region.
More details on the most common investment mistakes in Hong Kong are available in the presentation below:
3. Not using tax minimization strategies
is the legal practice of reducing the tax amount
due to the state. It is not the same as tax evasion and with a little knowledge, investors can apply various strategies, like making prepayments
. Our Hong Kong company formation representatives
can help you make use of these possibilities.
4. Not knowing the contractual law in Hong Kong
is important in cross-border transactions. Entrepreneurs who sign contracts in Hong Kong
with other individuals or companies have to pay attention to the law governing that agreement or else the contract might not be binding in the city. Our partner law firm in Hong Kong
can help you avoid such events when doing business here.
5. Omitting due diligence
Company due diligence
is important when entering into a business relation with another legal entity and even when signing contracts. The procedure is most useful when company mergers and/or acquisitions take place. Buyers can also perform a real estate due diligence
before concluding the final agreement with the seller. This is a protective measure
overlooked by many foreign investors in Hong Kong who are in a hurry to finalize a transaction.