Hong Kong is a Special Administrative Region of the People’s Republic of China, with broad autonomous rights, its own legislative & political system, and features of Western democracy. At the same time, HK is an international financial center with a transparent tax system, low taxes, minimal government intervention in businesses. This favorable environment attracts entrepreneurs from around the world.
Advantages of Hong Kong for businesses
- A simple & efficient business registration process with minimal requirements for share capital and directors
- Strategic location providing seamless access to mainland China and the Greater Bay Area, opening up significant opportunities for trade
- Recognized as one of the freest economies, offering a liberal business environment with favorable economic policies
- A low and straightforward tax regime, along with legitimate tax incentives for foreign investors, making HK an attractive place for businesses
- Limited liability, ensuring protection for HK company owners & shareholders, is one of the key advantages of this region
- Additional local & legal benefits for businesses in Hong Kong
Taxation for companies in Hong Kong
- Jurisdiction operates on a territorial tax principle
- Overseas income is not taxed (with proper explanatory information for tax authority IRD)
- Profits earned in HK: 8.25% on the first HKD 2 million (USD 255,000), then 16.5%
- Additional taxation conditions for HK companies