- Free Economy and Free Trade
Hong Kong is one of the world's most dynamically developing economies and a financial hub for many companies. The economy is developed on the principles of free market, free trade and free enterprise and is open to both Hong Kong residents and non-residents. There are no restrictions on domestic or foreign investment, foreign ownership, or currency control when setting up a trading organization in Hong Kong.
Setting up a company in Hong Kong is relatively easy compared to other countries. An incorporation can be done within one week without need of visiting Hong Kong. Local regulations allow 100% local or foreign shareholding and there are no restrictions on the nationality of directors or shareholders.
- Direct access to the Chinese market
If you want to enter the China Mainland market, you can do so through a Hong Kong company. You can set up a Wholly Foreign Owned Enterprise (WFOE), Joint Venture (JV), or export products to China under CEPA (Closer Economic Partnership Agreement).
Hong Kong operates at two-tiered income tax system, with corporations being taxed at 8.25% on her first HK$ 2 million. Any remaining profits after the first HK$2 million will be taxed at the rate of 16.5% for corporation. Furthermore, in Hong Kong he is not subject to VAT, GST, export tax, tax on capital gains or dividends.
Located in the heart of Asia, Hong Kong is the gateway to China, which boasts her second largest GDP in the world. Hong Kong is also just hours away from other major markets in Asia Pacific. Hong Kong has a developed economy, a high standard of living and medical facilities, excellent infrastructure, and he is one of the busiest international airports.