Hong Kong is consistently described as the world’s freest economy by highly reputed international institutions. Hong Kong became a Special Administrative Region of the People’s Repulic of China with effect from 1 July 1997. Hong Kong has inherited the best legal system from the United Kingdom.

Low tax, an excellent regulatory framework, the rule of law upheld by an independent judiciary and also strong anti-corruption enforcement are all important factors in drawing international business to Hong Kong. As of December 31, 2007, more than 1200 international corporations had established regional headquarters in Hong Kong, while more than 2600 had set up regional offices.

Following the accession of China to WTO, Hong Kong is an ideal location for foreign companies to set up regional headquarters in monitoring the business in China. Hong Kong can nevertheless supply them the accounting and legal expertise for their entry into this unprecedented growth of the China market. Among the advantageous of using Hong Kong as a planning jurisdiction, the most important features are:

Low tax region

British common law and legal system

Advanced and efficient infrastructure

High quality of local population

World clas professional support

Proximity to China

For more information, please refer to the following:

Hong Kong – General Introduction

You can incorporate Hong Kong Private Company Limited by Shares or Limited by Guarantee. Partner and Limited Partnership is also available. In addition, a foreign company incorporated outside Hong Kong can be registered under Part XI of the Compnanies Ordinance as a branch.

More and more world class asset and corporate planning scheme use Hong Kong as an intermediate Holding Company for investment holdings and Trading Company for transfer pricing or for various other purposes.

For information about how to incorporate a company in Hong Kong, please download the following:

Summary of Features of Hong Kong Company

Formation of a Hong Kong Corporation

Hong Kong Holding Company

Hong Kong Corporation

Hong Kong is famous for its low tax. Hong Kong adopts one of the most pro-commerce tax systems in the world. Corporations are required to pay only 16.5% profits tax on their profits. There is no restriction on the loss being carried forward. There is no value added tax, capital gains tax or sales tax. In addition, there is no withholding tax on dividend and interest.

For information about taxation of a Hong Kong Corporation, please refer to the following:

Use of Hong Kong Company in Tax Planning

Hong Kong adopts a taxation system based on the territorial principle. Only profits which arise in or derived from Hong Kong are subject to tax in Hong Kong. Income from outside Hong Kong is not subject to any form of taxation. However, there is actually no law or regulations which govern how the Inland Revenue Department will consider whether certain profits are offshore in nature. We can only draw some observations from cases which the Court has decided.

For information about how to avoid taxation on offshore profits, please refer to the following:

Consideration for offshore Profits – Hong Kong Company

The directors and management of Manivest Asia are professionals in the offshore industry having served the Asia markets for over 20 years. Through our offices in Hong Kong, Shanghai and Macau as well as our associates in other Asia cities, we offer a full range of comprehensive value-added services to professional advisors and their clients.

Manivest Asia offers the following services:

Incorporation of Hong Kong and other onshore/offshore companies and structures

Full corporate management services

Registered office, business office, mail redirection and business centre (available in selected locations only)

Accounting services

Re-invoicing services

Asset protection and preservation advisory services

Business establishment services

Market exploration services