Hong Kong has a free market economy highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown, but its increasing integration with China, through trade, tourism, and financial links, helped it recover more quickly than many observers anticipated.
As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade. The currency, Hong Kong dollar, is the eight most traded currency in the world as of 2010. Hong Kong was once described by Milton Friedman as the world’s greatest experiment in laissez-faire capitalism. It maintains a highly developed capitalist economy, ranked the freest in the world by the Index of Economic Freedom for 15 consecutive years. It is an important centre for international finance and trade, with one of the greatest concentrations of corporate headquarters in the Asia-Pacific region.
- Well established English common law system with simple and easy-to-follow statutory requirements
- Official Chinese company names and M&A’s are allowed
- Hong Kong companies are subject to taxation on the source of income derived in Hong Kong only.
- Revenue generated from offshore business or activities is exempt from taxation
- No tax on capital gains and dividends
- No foreign exchange control or currency restrictions
- Corporate directors and shareholders allowed
- No requirements for disclosure of details of beneficial owners to the Companies Registry
- Very low tax rate (16.5% on net profit)
- Beneficiary owner’s identity can be hidden from public company record by using Nominee service
- No restriction in fund transfer to and from most part of the world
- Enjoy convenience of international banking system
- Close to and with excellent relationship with Mainland China
- Being international center of information exchange and transportation hub Ready-made companies are allowed
Corporate Structure requirements in Hong Kong, please click here.
Please click here for the fees structure related to Hong Kong Incorporated Companies.