1. The economic system is market oriented, with a little involvement of
government intervention. Many investors can choose what businesses they do,
the government are more encourage them to make investments.
2. The capital
flows of money from and to Hong Kong are absolutely free and without control
and restrictions. All currencies can be used in Hong Kong, with absolutely
free of money wire in and wire out between Hong Kong and other countries.
3.
Offshore business activities are 100% tax free. The Hong Kong tax law has
ruled out that only local business is subject to profits tax, overseas
business registered in Hong Kong is offshore busines and so is not subject
to profits tax.
4. Low tax rate. Even the business is done in Hong Kong, the
tax rate is only 16.5% of net profits (in year 2008/09 and onward). The tax
rate is absolutely low, with no other tax systems such as VAT, business tax,
no capital gains tax, etc.
5. Formation requirement is very simplifed. As an
international city, a person, overseas person or local person, can be
appointed as the shareholder and director of a Hong Kong company, with the
requirement that there must have an appointed local secretary and registered
office address for correspondings.
6. No capital investment is required. The
shareholder is only required to sign up the agreement to declare that he
will contribute capital to the company, and no actual capital investment is
required.
7. Freely use of company name. In other countries, some names are
not free to use such as holding, group, ...., etc. However, in Hong Kong,
the name is freely used, provided that they are not registered in Hong Kong,
subject to other restrictive rules such as defentive words are not allowed
to use.
8. It is easy to open an offshore bank account with using Hong Kong
company. Hong Kong as an international city, offshore bank account is rather
easy to open with using Hong Kong company, the investor is required to provice his address proof documents, and passsport copy, Hong Kong company
formation documents and a general description of his business. HSBC and
Standard Chartered Bank, as in international bank, can accept the above
documents and open an offshore bank account with multi-currencies and
internet banking facilities included.
9. According to global statistics,
Hong Kong is still No. 1 economy freedom.
10. Legal systesm remains using
common law systems and equity rules as that applied in UK and Commonwealth
countries.
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Stephen Lai,
hkprofessional@hotmail.com
http://www.chuilaiandcocpa.com/
