Country: Hong Kong
Region: Asia
Currency: Hong Kong Dollar (HKD) (HK$)
Languages: Cantonese, Putonghua, English
Time Zone: UTC +8
Phone Code: +852
Communications: Excellent
Formation Cost: 2000 - 2800 USD$
Formation Time: 12 - 20 days
Maintenance cost: 600 - 1200 USD$
Hong Kong has thrived historically as a trading entrepôt serving many Asia Pacific countries and also as a low-cost manufacturing center, and has turned towards the provision of services, particularly financial, professional and logistic services. Its economic success is largely based on a whole-hearted adherence to free and open trade, the values encompassed in a British common law legal system, adapted with Chinese characteristics, and a laissez-faire, non-interventionist attitude on the part of government. There are few if any significant barriers to investment by foreigners. The government has consistently followed business-friendly policies. It is not an 'offshore' jurisdiction as such, but is regarded as ‘mid-shore’ and has generally low tax rates which are levied only on Hong Kong-source income. There is no capital gains tax, no withholding tax, no sales taxes, no VAT, no annual net worth taxes and no accumulated earnings taxes on companies which retain earnings rather than distribute them.
Suitable for:
Banking, Insurance, Fund Management, Shipping, Trading Goods, Trading Financial, Intellectual Property/Licensing, Holding Companies, E-commerce, Property Ownership, Listing Vehicle for Initial Public Offerings
Vehicle Types:
Limited companies, public limited companies, trusts, branches, general partnerships, limited partnerships and sole proprietorships
Capital primary business districts:
Central, Kowloon
Good Relationships:
China/generally maintains good relationships with countries large and small, wherever they are located in line with its laissez-faire approach to business
Bad Relationships:
Generally maintains good relationships with countries large and small, wherever they are located in line with its laissez-faire approach to business
Tax Burden - Business:
Light
Tax Burden - Individual:
Light
Headline tax rates:
CIT 8.25%/16.5%, (subject to assessable profits), PIT 15%, VAT 0%
Treaty Jurisdictions:
Austria, Belarus, Belgium, Brunei, Canada, China, Czech Republic, France, Guernsey, Hungary, India, Indonesia, Ireland, Italy, Japan, Jersey, Kuwait, Latvia, Liechtenstein, Luxembourg, Malaysia, Malta, Mexico, Netherlands, New Zealand, Pakistan, Portugal, Qatar, Romania, Russia, Saudi Arabia, South Africa, Spain, Switzerland, Thailand, United Arab Emirates, United Kingdom, Vietnam
TIEA Jurisdictions:
Denmark, Faroe Islands, Greenland, Iceland, Norway, Sweden, United States
