The United Kingdom and Hong Kong, which has a legal system largely based on that of the UK, trade closely with UK goods exports at £6.3 billion in 2014, an 11 per cent increase on 2013. Hong Kong is the UK's second largest market for goods in Asia Pacific (after Mainland China) and 11th largest worldwide.
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 UK business to Hong Kong.
The advantages of using a UK company include:
- Good reputation
- EU member
- Common law jurisdiction
- Cost effective
- Leading commercial country
- Efficient registry
- Quick company incorporation and dissolution
- Strong cultural links with Hong Kong
- Hong Kong is an established and highly regarded jurisdiction. It has an English common law legal system, low tax regime, historical trading links and unique access to the People Republic of China, the world fastest growing economy and biggest potential market.
Hong Kong Advantages
- Profits tax payable by local and foreign companies is low at 16.5 per cent
- Hong Kong taxes are among the lowest in the world and the tax regime is simple and predictable
- There is no capital gains tax, no withholding tax on dividends and interest
- Salaries tax is maximum of 15 per cent
- There is no sales tax or VAT
- The actual tax bill is usually even less after different depreciation allowances and deductions
- Third largest stock market in Asia
- Hong Kong has a world-class business infrastructure
- Strict anti-corruption regime - the Independent Commission Against Corruption (ICAC) is set up to combat both public and private sector corruption
- Highly trained, well-educated and skilled workforce, well versed with the business culture in the Mainland cities
- Hong Kong's Economy
- Hong Kong is the world's 8th largest trading economy and the world's 10th largest exporter of commercial services (2014). Hong Kong is the world's most services-oriented economy, with the services sector accounting for more than 90 per cent of GDP.
In 2014 Hong Kong was the second largest recipient of foreign direct investment (FDI) in Asia, after Mainland China, and the third largest source of FDI in Asia, after Japan and Mainland China.
In January 2015 Hong Kong was ranked as the world's freest economy in the Heritage Foundation's annual Index of Economic Freedom for the 21st consecutive year.
How Can ILS Help?
ILS World has gained significant experience in advising and administering UK Company related structures for clients, and offer the following services:
- Company administration
- Formation of companies and trusts
- Use of our service companies as intermediaries
- Assistance with contracts
- Invoicing and accounting
- Director and secretary services
- Registered office facilities
- Opening of bank accounts
- Physical office facilities
- Accounting services
For further information regarding our Hong Kong services please contact us.