Hong Kong is the freest trading port in the world, it is an international metro with abundant information. With excellent infrastructure and complete legal system, it provides an advantage commercial environment to all enterprises and traders. Companies registered in Hong Kong are treated equally regardless of origins. No tax preferences are given. No industries are sheltered. Therefore, more and more people established their own companies in Hong Kong with different purposes, which improve not only the image of the company itself, but also the competitive ability in the international market.
I. Geographical Location
Hong Kong is located on China's south coast, 60 km east of Macau on the opposite side of the Pearl River Delta. It is surrounded by the South China Sea on the east, south, and west, and borders the Guangdong city of Shenzhen to the north over the Sham Chun River.
Despite Hong Kong's reputation of being intensely urbanised, the territory has tried to promote a green environment,and recent growing public concern has prompted the severe restriction of further land reclamation from Victoria Harbour. The territory features the most skyscrapers in the world, surrounding Victoria Harbour, which lies in the centre of the city's dense urban region.
II. Legal System
Hong Kong's current legal system, independent of the legal system of mainland China and Chinese civil law. Its legal system is using common law and equity that applied in UK and other Commonwealth countries. Trust law is applicable in Hong Kong. If the investor, for his personal reasons, wants his status being hidden, he can do so with a trust arrangement that the trustee holds the shares for him (as a beneficiary) and he holds the trust deed which proves him a real owner of the shares. The trust law is applicable in Hong Kong. Remember trust documents or such laws are not enforceable, ineffective, invalid or void in other countries such as China.
III. Taxation in Hong Kong
Under Article 108 of the Basic Law of Hong Kong, the taxation system in Hong Kong is independent of, and different from, the taxation system in mainland China. In addition, under Article 106 of the Hong Kong Basic Law, Hong Kong enjoys independent public finance, and no tax revenue is handed over to the Central Government in China. The taxation system in Hong Kong is generally considered to be simple, transparent and straightforward among jurisdictions in the world. Taxes are collected through the Inland Revenue Department (IRD).
Taxes collected in Hong Kong can be generally classified as:
(1) Direct tax – including Salaries Tax, Property Tax and Profits Tax; the guiding statue is Inland Revenue Ordinance (Cap 112);
(2) Indirect tax – including Stamps Duty, Betting Duty, Estate Duty (abolished on 11 February 2006) and others.
III. Major Benefits of Investing in Hong Kong
1. Hong Kong is a major trading entity and therefore the incorporation of a Hong Kong company is likely to be perceived as "legitimate" and therefore less likely to be seen as a tax avoidance/minimisation vehicle.
2. The Hong Kong tax system is simple and straight-forward.
3. There are no restrictions on the use of foreigners as Shareholders or Directors at a Hong Kong company.
4. The incorporation of a Hong Kong company is simple and quick.
No minimum requirements for share capital.
5. Hong Kong has an excellent banking system and communications infrastructure.
Contact Us
If you have further enquire, 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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