History of Hong Kong
Hong Kong is located in southern China and is one of the two Special Administrative Regions of the People’s Republic of China, the other being Macau. It has seven million inhabitants and is a former British colony which was returned to China in 1997. Hong Kong retains its own legal system, separate from the rest of China. China has stated that Hong Kong will retain its autonomous status until at least 2047.
Hong Kong as an Offshore Centre
As the primary financial centre in Asia, and the third largest in the world, Hong Kong offers its offshore companies 0% tax, confidentiality and the ability to open multi-currency accounts. From a legal perspective, there is a single piece of legislation which regulates all types of businesses. All Hong Kong companies must have their headquarters in the country and the most popular offshore vehicle is the Private Company, which offers limited liability.
Hong Kong is a respected and popular destination for all types of business and international trade. It is also a popular choice for import/export businesses. Although, the minimum share capital for Hong Kong companies is 1 HKD, though it is more normal to form with at least 10,000 HKD.
Although Hong Kong has a corporate tax rate of 17.5%, companies only pay tax on income from activity in Hong Kong. This means that offshore companies, having their activity outside Hong Kong, do not pay any tax.
Hong Kong Summary
Hong Kong is an attractive jurisdiction from any point of view, its key benefits include: the ease of doing business, the impossibility of investigation by local tax authorities, a strong tradition of banking secrecy, world-class economic stability and an excellent international reputation. Hong Kong offers an ideal base for service companies and international trade activities.