A guide to doing business in Hong Kong
Hotline: 86-755-82143422
Doing business in Hong Kong, namely, Hong Kong business setup, Hong Kong company registration, and Hong Kong corporate formation, remains attractive for global investors. Hong Kong is recognized as one of the world's leading financial centers and a gateway to the market in mainland China. It is an attractive place to invest as it offers significant benefits for foreign investors.
Types of Business Vehicle
The most common types of business vehicle for foreign companies wishing to carry on business in Hong Kong are:
• A company incorporated in Hong Kong
• A branch office of that foreign company, or
• The establishment of a representative office in Hong Kong.
Also possible, but less common, are sole proprietorships, partnerships and limited partnerships.
Taxation in Hong Kong
Taxation in Hong Kong is based on a territorial source principle rather than on residency or management and control. Hong Kong companies only pay tax on profits sourced in Hong Kong and the rate of taxation is currently 16.5% on assessable profits, which is expected to be 8.25% for the first two million of profits. Hong Kong companies do not pay tax on profits sourced outside Hong Kong.
There are no withholding taxes on dividends paid to foreign shareholders, no withholding taxes on interest paid to foreign creditors, no taxes on capital gains, and no inheritance tax.
Employment in Hong Kong
Employment in Hong Kong is less regulated than it is in many other jurisdictions. There is no statutory requirement that a percentage of employees must be local nationals or that a percentage of payroll be paid to local national employees. All non-local nationals are subject to immigration controls and require employment visas before entering into employment in Hong Kong.
Intellectual Property in Hong Kong
Hong Kong has comprehensive laws for the protection of intellectual property deriving from local legislation, case law and international treaties, such as the Berne, Universal Copyright and Paris Conventions. For more information about Hong Kong IP services, you may refer to Hong Kong Trademark Registration, Hong Kong Patent Registration, Hong Kong Copyright Introduction.
Remedies for infringement of all intellectual property rights include an injunction, disclosure upon oath, delivery up for destruction or forfeiture, damages and/or an account of profits and legal costs. In the case of serious counterfeiting, the courts may grant orders to search premises and seize infringing goods and evidence without prior notice to the infringer. The Customs and Excise Department also have wide powers of search, seizure and arrest under the criminal provisions to enforce trademark and copyright.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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