- Gateway to and from Asia, specifically Mainland China
- Source based taxation system
- Major business hub, with a very good reputation worldwide
Hong Kong is strategically located in the heart of Asia, alongside many of the region’s most exciting business markets. Until 1997 the region was under British administration, after that becoming a special administrative region of China with a high degree of autonomy due to the PRCs “one country, two systems” principle. It has half of the world’s population less then 4 hours’ flight away and a very modern and efficient travel infrastructure.
Hong Kong ranks as the world’s third largest financial center after New York and London, making it one of the top financial centers in the world and the number one financial hub in Asia. Its port ranks as number 2 in the world after Singapore by volume.
Hong Kong is one of the least corrupt economies in the world, according to the Transparency International’s Corruption Perceptions Index 2015. It ranks ahead of countries including France, Italy and Spain.
The official language is Cantonese, but English is widely used.
Its currency is the Hong Kong Dollar (HKD) which is pegged to the US Dollar.
TAXATION & LAW:
According to the 2016 Paying Taxes study of 189 economies by the World Bank, Hong Kong has one of the most tax-friendly economies in the world.
Hong Kong’s legal system is based on the British Common Law, with the main advantage that its corporate tax system works on a territorial basis. Any profits that are derived from business activities outside Hong Kong, can be tax exempt if all the requirements are met.
- Profits tax is 16.5 %
- Salaries tax is a maximum of 15 %
- Property tax is 15%
More important are the taxes that Hong Kong does not impose:
- No sales tax or VAT
- No withholding tax
- No capital gains tax
- No tax on dividends
- No estate tax
Hong Kong also boasts a comprehensive list of double tax agreements with other countries.
For the past 22 years Hong Kong has been ranked as the ‘World’s Freest Economy’ by the Heritage Foundation/Wall Street Journal. The index measures economies in 10 specific categories, including trade, business, investment and property rights. Hong Kong scored particularly well on business, trade and financial freedoms.
An investor can incorporate a Limited Company that can deal in trading or services at the same time. Each company must have a secretary and a local registered address.
Our company offers a full range of corporate services, from local, free zone and off-shore company formation, to accounting services, auditing support, bank account opening, resident visa services, business advisory and compliance services.