Hong Kong business environment (for Hong Kong company registry)

Hong Kong is not only the leading international city but also a service hub and platform for international market. Hong Kong is also a gateway to Mainland China for global investors, especially after China access into WTO and the continuing of reduction in administrative barriers of trade. Hence, both overseas and Chinese enterprises use Hong Kong as a regional headquarters and set up a regional office in Hong Kong to enjoy her investment benefits.

Here summarizes the Hong Kong’s business environment and her benefits as below:

Hong Kong’s official language is Chinese (Cantonese) and English. After the reunification, Putonghua is more popular in Hong Kong.

The Hong Kong Government has been pursuing an active policy of non-intervention, which is to support business development, provide support when needed and avoid interfering with operation of the market. Hong Kong has been for many years known as the world’s freest economy.

Legal aspects
Under the “one country two systems” principle, the existing economic, legal and social system in Hong Kong will remain unchanged for 50 years. Since Hong Kong law system is mainly based on English common law, property rights are fully protected, hence giving confidence of investors.

The taxation in Hong Kong is quite simple. The corporate profits tax is the main tax and no capital gains tax, sale tax or VAT. Hong Kong adopts a territorial source of taxation, i.e. income and profits derived from Hong Kong are liable to taxation. Corporate profits tax rate is 16.5% lower than in other countries and regions.

Exchange Control
Hong Kong has no foreign exchange controls. Hence, company can send and receive funds at any time.

It may enjoy many benefits and facilities when you set up Hong Kong company, or establish a regional offices in Hong Kong.


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