Hong Kong is widely considered as an international trade, industrial and financial centre of Asia, and also as a gateway to do business in China. Hong Kong companies are ideal for conducting a broad range of international business.
Benefits of HK company are as below:
There are no exchange controls.
Taxation policies: no double tax, tax-free markets exist in gold, stocks and futures.
No taxes are levied on dividends, interests or capital gains, or for offshore contracts.
Hong Kong has the biggest free trade zone.
Laws favor efficient performance of business, Hong Kong has always been ranked the freest economy in the world, and as one of the most competitive economies.
Banking facility. Few restrictions exist in Hong Kong foreign investment.
The Closer Economic Partnership Agreement (CEPA).
Hong Kong is one of the few countries in the world that tax on a territorial basis.
More Taxation policy please refer to Tax Benefits of Elite.
Hong Kong is one of the leading Asian centers for both finance and commerce. There are over 135 licensed banks with over 120 foreign banks having representative offices in Hong Kong. There are no exchange controls and tax-free markets exist in gold, stocks and futures. Few restrictions exist in Hong Kong on foreign investment or the transfer of income and capital.
No double taxation
Businesses operating in Hong Kong do not generally have any problems with double taxation of income due to the territorial basis of taxation, unilateral tax credit relief for any Hong Kong tax paid on income/profit derived from Hong Kong provided by many countries and deduction for foreign tax paid on turnover basis in respect of an income which is also subject to tax in Hong Kong.
Hong Kong has a very stable social and political environment. It is located at the doorstep of Mainland China and has excellent relationship with China. The HK company can be structured to hold the shares for the Chinese company.
Hong Kong SAR is a well-known international, industrial and financial centre. It ranks as the world’s third largest financial centre after New York and London. It has the world’s largest container port and it is a major gateway for investment and finance into China and the rest of Asia. English and Chinese are the official languages.
With British legal system as background, which is well adopted, each company limited is a separated legal entity and is well protected by laws and regulations.
The Closer Economic Partnership Agreement (CEPA)
CEPA was signed in 2003 by Central People’s Government and the Government of Hong Kong Special Administrative Region and came into effect on 1 January 2004. It provides preferential access to China market and reduced tariffs for qualified enterprises. This arrangement is exclusive to Hong Kong. Therefore, it further strengthens Hong Kong’s position as the ideal location from which to do business with China.