Hong Kong is a leading international finance centre and trading hub with all the specialist professional services in place to support it.
Its key features are:
• Flexible legal system based on English Common law
• Experienced and skilled network of professional services providers
• Access to capital from the fifth largest stock market in the world
• World-class telecommunication infrastructure
• Taxes only on Hong Kong sourced income
• Strong network of Double Taxation Agreements.
Hong Kong is a cornerstone of the Greater Bay Area (GBA) – in addition to Hong Kong and Macau it includes a cluster of nine cities in the Pearl River Delta of south China. The GBA is subject to a raft of sweeping preferential policies to encourage growth, innovation and technology aiming to encourage the flow of goods, people and capital within the region.
The potential for the GBA is phenomenal - it is now the largest urban area in the world with a combined population of 73 million people. Taking up less than one percent of China's land space it currently contributes around 11 per cent of China's economy.
An ambitious network of highways, railway links and bridges – including the 55-km world class Hong Kong-Zhuhai-Macao Bridge, is cutting travel time between Hong Kong and GBA cities creating the opportunity for Hong Kong residents to continue living in the city, but work throughout the GBA, or vice versa. There is also access to land and labour, addressing the two key challenges for most start-ups in the jurisdiction.
Hong Kong is an established platform for capital to flow in and out of China – it is a natural gateway and a conduit into the GBA. It has freeport status and straightforward customs clearing. Duty is only paid on limited products such as tobacco, however, imported wine and beer is duty free.
Major business cities like Beijing, Shanghai, Singapore, Taipei, Manila, Kuala Lumpur and Perth are in the same time zone whilst Bangkok, Jakarta, Seoul and Tokyo have an hour's difference. In 2019 more than 100 airlines operate flights from Hong Kong International Airport to more than 180 destinations.
Hong Kong's stock market, the third largest in Asia after Japan and Shanghai, is considerably more liquid and familiar to investors. Since China opened its doors to the world in the 1970s, Hong Kong companies have invested more time, money and resources than any other tapping into the potential of the Chinese market.
Hong Kong's competitive advantage comes from:
A relatively low cost, quick and easy process. There are no restrictions on inbound or outbound investment and there are no nationality restrictions on company ownership. Foreigners can invest in almost any business and own up to 100 per cent of the equity.
Businesses and individuals benefit from a straightforward tax system. There are three direct taxes and there are generous allowances and deductions.
• Two-tiered profits tax – For corporations, the rate is 8.25% for the first HK$2 million of assessable profits, rising to 16.5% for profits above that amount. For unincorporated businesses (partnerships and sole owners), the tax rates are correspondingly set at 7.5% and 15%.
• Salaries tax with a progressive tax rate starting at 2% and ending at 17%; or at a standard rate of 15%.
• Property tax of 15%.
There is no sales tax or VAT, no withholding tax on dividends and interest, no capital gains tax, no tax on dividends and no inheritance tax.
Hong Kong is the only common law jurisdiction within China and has built well-established commercial case law valued by the international business community and foreign investors.
Hong Kong's infrastructure is seamless with advanced land, sea and air transport and communications system. Sophisticated port and air cargo facilities has ensured Hong Kong's place as one of the largest trading entities in the world.
The development of innovation and technology has been a top priority for the Hong Kong Government with policies to promote innovation, research and development, artificial intelligence, robotics, biotechnology and financial technologies.
International financial platform
With its strengths in banking, capital markets and asset management, Hong Kong provides a high-quality financial platform for investors, financiers, asset managers, funds and financial institutions. Hong Kong is also a preferred location for corporate treasury centres. It is Asia's largest banking hub with 200 authorised banking institutions.
Why Choose ILS World
As a leading provider of independent fiduciary services to professional advisors, corporate groups, private and digital clients, we are here to help you achieve your financial goals.
Our experts in Hong Kong have a great deal of knowledge and experience in assisting with private clients, investors, and entrepreneurs on the appropriate structures, company formation, the opening of bank accounts, compliance, administration and much more.
Our professionals can also support you in fluent English, Cantonese, and Mandarin.