Hong Kong

The Hong Kong Advantage

Hong Kong is a Special Administrative Region of the People's Republic of China with a high degree of autonomy and its own legal system based on English common law. As one of Asia's leading international financial centers, Hong Kong offers a business-friendly environment with low taxes, minimal government intervention, and excellent infrastructure.

Companies incorporated in Hong Kong benefit from a simple and competitive tax system with a territorial basis of taxation, meaning only profits sourced in Hong Kong are taxable. The corporate tax rate is 16.5% for profits over HK$2 million, and just 8.25% for the first HK$2 million. There is no capital gains tax, no withholding tax on dividends, and no sales tax or VAT.

Key Benefits

• Gateway to China: Strategic location and privileged access to mainland Chinese markets
• Competitive Tax System: Territorial taxation with low rates and numerous exemptions
• Banking Excellence: Sophisticated financial services sector with over 160 licensed banks
• Legal Certainty: Well-established legal system based on English common law
• Business Efficiency: Streamlined company formation process and minimal bureaucracy

Company Types Available

Regulatory Framework

Hong Kong maintains a robust regulatory framework that balances business-friendly policies with effective oversight. The Hong Kong Monetary Authority (HKMA) regulates the banking sector, while the Securities and Futures Commission (SFC) oversees the securities and futures markets. The Companies Registry administers the Companies Ordinance and handles company registrations.

Hong Kong has implemented comprehensive anti-money laundering regulations and is compliant with international standards, including those set by the Financial Action Task Force (FATF). The jurisdiction has also signed numerous double tax treaties and tax information exchange agreements, reinforcing its position as a transparent and reputable international finance center.