Hong Kong - Key Benefits
Hong Kong is one of the world most established and reliable financial centres. The economy in Hong Kong is considered to be one of the freest in the world (as measured by the Index of Economic Freedom) therefore it is an excellent jurisdiction in which to incorporate a company.
There are many advantages with incorporating a Hong Kong Company. Some of these are listed below.
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Hong Kong is a major trading entity and therefore the incorporation of a Hong Kong Company is likely to be perceived as ‘legitimate’ and therefore less likely to be seen as a tax avoidance / minimisation vehicle
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English is an official language and the main business language. All reporting and important information can be produced in English
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The Hong Kong tax system is simple and straight-forward
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There are no restrictions on the use of foreigners as shareholders or directors at a Hong Kong company
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Corporate director and secretary are allowed
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The incorporation of a Hong Kong Company is simple and quick
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Low cost of incorporation and maintenance
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No minimum requirements for share capital
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Only one director and shareholder is required to form a limited liability company
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Due to the system of territorial taxation foreign source trade profit is not subject to Hong Kong income tax
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There is no capital gains taxes in Hong Kong
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There is no withholding tax on interest, dividends and royalty
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Foreign dividends are not a subject to Hong Kong income tax
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Tax credits for foreign tax paid are available in Hong Kong. However, it is a subject to some conditions
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There is no net worth tax in Hong Kong
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Hong Kong has an excellent banking system and communications infrastructure