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The advantages of companies in Hong Kong

A geographically small Hong Kong became a huge window of opportunities. Today  the Hong Kong tax system can compete with any offshore jurisdictions. The main point in favor of conducting business through the structure of Hong Kong is tax benefits. So, why should you choose Hong Kong to conduct your business?

  • Hong Kong is the third largest financial centre of the world after New York and London.
  • Taxation of Hong Kong is built on the territorial principle i.e. there is no division into residents or non-residents. The only subject to taxation is the income received in Hong Kong or derived from the activities conducted in Hong Kong.
  • The international prestige of jurisdiction.
  • Lack of exchange controls. There are not  exchange controls in Hong Kong; the Hong Kong dollar is freely convertible currency.
  • The official languages are English and Chinese. Official documents of Hong Kong companies are in English and Chinese languages. Therefore these companies are convenient tools for work all over the world.
  • Low rate of inflation.
  • The fixed exchange rate in Hong Kong was entered in October 17, 1983, and it is still kept at around 7.8 HKD / USD.
  • Slight government intervention in business. The Hong Kong government follows the policy of minimal intervention in the market situation faithfully, and the authorities keep trying to improve a business climate.
  • Reliable bank system. The leading financial institutions of the world are concentrating  in Hong Kong, where there are about 250 banks. Hong Kong operates 69 of the 100 largest world banks.
  • Hong Kong is a bridge between Europe and Asia.
  • China is an attractive jurisdiction for the foreign companies. It is a giant factory and a huge sales market for them. But the slow institutional reforms do not allow any foreign or local companies to feel secure. Hong Kong plays a quasi-role of administrative, tax and legal "umbrella" in relation to the companies coming into the Chinese market.
  • Hong Kong opens the gates of China market and low-cost production resource for the oversea companies. A short time ago it was accepted that the favorable trade legislation that regulates China’s trade relations with Hong Kong and clearly demonstrates the recognition of its importance as a bridge between China and the rest of the world.
  • One of the world’s biggest duty free container port. Hong Kong ranks fifth in the world with regards to goods turnover. Together with Japan, Taiwan and South Korea, Hohg Kong is  in the group of four courtiers with the highest rate of economic growth. This group of four countries, following Far East tradition, are named the "four dragons" or "four tigers".