What Are the Pros and Cons of Incorporating Your Business in Malaysia or Hong Kong?
If you were given a chance to have your own business in Malaysia or Hong Kong, which country would you choose?
If your answer is you’re going to take some time first and gather some facts before you answer the question, we can’t blame you. Making a decision is not easy and you have to weigh all the pros and cons.
In that case, let us help you in deciding which option is ideal for you.
Malaysia Vs. Hong Kong
Since we want you to choose properly where to incorporate your business, we’re going to present some criteria that businesspersons are usually looking for in choosing a location for their business. Then, we’ll discuss the Pros and Cons of each of these criteria for both Malaysia and Hong Kong.
|Criteria in Selecting a location for your business||Malaysia||Hong Kong|
|1. Types of business you can incorporate||Malaysia offers three types of businesses to foreigners, namely Private Limited or Shd Bdn, Labuan International Company, and the Representative or Regional Office.||Hong Kong offers more types of business to foreigners like a Public or Private Limited Liability Company, Partnerships, Sole Traders, Branches, or Representative Office.|
|2. Times it takes for a business to incorporate||Malaysia usually incorporates a business in a matter of 5-10 days approximately.||Hong Kong can incorporate a business in just 3 days.|
|3. Strategic Location||Malaysia is a strategic location in South East Asia. Most flights are available in Hong Kong and you can reach China and the South East Asian Nation Countries in a matter of 2 hours by air. Malaysia has many Regional Flights but fewer flights to America and the rest of the world.||Hong Kong is a strategic location in Asia. Many countries fly to Hong Kong and you can reach major locations in Asia in a matter of hours. Hong Kong, however, has many flights to America and the rest of the world.|
|4. Infrastructure||The infrastructure in Malaysia continues to progress. Malaysia’s airport is considered as the best aside from Singapore in the South East Asian Region.||Infrastructure is one of the greatest assets of Hong Kong. Its airport is one of the largest around the world. The number of high rise buildings in the country is numerous as well.|
|5. Political Stability||Political Stability in Malaysia is great. Malaysia is friendly to its neighbouring countries.||Political Stability is one of the challenges of Hong Kong with ongoing struggles with China.|
|6. Good Roads, Transportation, and Communication||Malaysia has good roads, transportation, and communication. However, its airports and harbours are not that huge compared to Hong Kong||Hong Kong has good roads, transportation, and communication. Its airports and harbours are huge compared to Malaysia|
|7. Tariffs and Taxes||Malaysia has good tax incentives given to foreign investors.||Hong Kong has good tax incentives given to foreign investors. But aside from that, the secrecy being given to foreign investors is great in Hong Kong.|
|8. Availability of Skilled Workers||Malaysia has enough supply of skilled workers in the country. Its quest to give its citizens the best education makes it possible. The labour cost of these workers is not as expensive as well compared to first world countries.||Hong Kong has the best education around the world. Because of this, they have great skilled workers. However, the salary of these people is high and expensive. This is something you have to pay as a businessperson when you employ them.|
|9. Share of Stocks||In Bursa Malaysia, the minimum number of shares of stocks you can buy or sell per transaction is 100 units.||Hong Kong doesn’t impose a minimum amount on the share of stocks among companies.|
Although from the comparison, you may think Hong Kong has a lot of advantages, you also have to think of your operational cost. Running or owning a business company in Hong Kong is expensive on the other hand and so are the salaries of the employees. Do you think you’re going to earn more in Hong Kong to the point you can compensate for all your expenses and earn at the same time? If so, choose Hong Kong. But if you think the cheap cost of operation and labour in Malaysia sounds more feasible for you, then, go for it.
If you’re still confused and can’t decide which location to choose, we at 3E Accounting Services would like to help you decide whether you want to Incorporate Your Company in Malaysia or Hong Kong.