Hong Kong is one of the most open and externally oriented economies in the world. The region prospers as a trading hub and service centre, where an understanding of international markets as well as the Mainland give it a unique and versatile economic role.
Hong Kong has a significant trading economy and is a centre for both multinational and local companies operating in Asia.
Although not commonly regarded as a tax haven, Hong Kong companies have significant tax advantages including low rates of taxation and the ability to legally earn profits tax-free under certain conditions. Hong Kong companies can easily carrying out business in the Peoples Republic of China and throughout Asia.
Hong Kong incorporated companies are increasingly becoming the chosen entities for conducting trading activities in Asia as they benefit from a tax friendly environment and business friendly legal system. Hong Kong offshore company is one of the most stable, tax-efficient corporate structures.
Some of the principal features, advantages of a Hong Kong offshore company include:
1. A Hong Kong offshore company is an excellent corporate vehicle to house global corporate profits, thus minimising international taxation;
2. Favourable corporate tax rules make a Hong Kong offshore company the perfect holding company;
3. A Hong Kong offshore company is an excellent medium through which to enter the Chinese market;
4. Hong Kong’s corporate and personal banking system is one of the most secure in the world. Hong Kong has strict client confidentiality and bank secrecy laws and is not a signatory to the Organisation for Economic Cooperation and Development (OECD) tax harmonisation initiative, and so it does not exchange customer information across borders.
5. Lack of Exchange control
6. Skilled Workforce
7. Confidentiality of Provided Information