HK Background
For more than a century and a half, Hong Kong has been called “the Pearl of the Orient”. In 1843, the British took possession of what was then a small fishing village and, over time, concerted it into a thriving metropolis. In Asia, Hong Kong became the bastion of open trade, free port and rule of law – all of which were lacking in the surrounding region. And then in July 1997, the colonial era ended; sovereignty reverted to China; Hong Kong became a Special Administrative Region (SAR) of the People’s Republic, with its own mini-constitution, the Basic Law.
Advantages of Hong Kong Company
01. Reduce Risk Exposure
A Hong Kong incorporated company will be governed under the relevant laws of Hong Kong Special Administrative Region (HKSAR). For over half a century, Hong Kong has been one of the leading business and financial hubs across the globe. Under transparent regulations as well as the belief of freedom in financial and capital markets, Hong Kong is considered as a safe heaven for legitimate investors and firms. Hong Kong also allows the incorporation of limited liability company, with maximum liability based on the amount of share capital being injected during the formation of the company.
02. Exchange Control
There is no exchange control in Hong Kong. Funds can be freely remitted into and out of Hong Kong without any restriction
03. Low Tax Rate
Hong Kong has the lowest tax rates among all the places in the world. Currently, the profits tax rate is 16.5% for incorporated businesses. There is no capital gain tax. Dividend income is also not subject to profits tax.Therefore, by setting up a Hong Kong company, the foreign investor can avail of himself of the low tax rates in Hong Kong and minimize his tax liabilities from the China investment through proper tax planning.
04. Banking System
Hong Kong has one of the best banking systems in the world. Almost every major international bank has its branch or representative office in Hong Kong.Foreign investors will therefore easily find a suitable banker to arrange for finance and credit facilities required. The well-established banking and communications systems in Hong Kong also facilitate international trading and funds transfers.
05. Professionals
We have in Hong Kong a pool of professional expertise trained in all facets of international business: a skilled local workforce, which is well educated, computer-literate, productive, disciplined, and highly trainable;in addition to a foreign expertise attracted by rich business opportunities and an international, cosmopolitan orientation, with English as the business language.
06. Proximity to Mainland Chinese market
CEPA opens up huge markets for Hong Kong goods and services, greatly enhancing the already close economic cooperation and integration between the Mainland and Hong Kong.In brief, the Mainland has applied zero import tariff for exports from Hong Kong meeting CEPA origin rules for goods and preferential market access for Hong Kong companies in 44 service sectors, including banking, logistics, legal, audiovisual, transport and mining.