Hong Kong
Hong Kong is the best of the so called “Asian tigers”: it has been a continuous leader in the Index of Economic Freedom since it was established, which reflects an unprecedented integrity of capitalism in Hong Kong and the unique efficiency of the classic governmental non-interference with business principle (laissez faire).
Hong Kong’s economy is based on free market, private sector priority, and low tax rates. These are the reasons why many companies, from global leaders to smaller businesses, are willing to work in Hong Kong to ensure well-run business and a reduction of expenses.
Hong Kong’s key advantages:
- Territorial taxation principle means that tax on profits received outside Hong Kong is not charged. There are no sales taxes, VATs, capital gains taxes, property taxes, as well as no taxes on dividends, interests and royalties received from abroad or sent abroad. Taxes on company’s profits received from business in Hong Kong are just 17.5%, while taxes for private individuals cannot exceed 16%. All of the above makes Hong Kong’s taxation system attractive for international companies.
- Maximum simplicity and transparency of all the formal procedures, such as incorporation, reports and declarations submissions, and audit events works to prevent corruption and guarantees comfortable conditions for business operation.
- High security levels of financial and business information: there are only 22 agreements on information exchange. Moreover, Hong Kong government officials managed to strike a balance between the need for confidentiality in international business and the requirements of international organizations. Practice shows that the Hong Kong tax service does not allow tangible interference in the affairs of international entrepreneurs.
- English is the official language in the country alongside Chinese, so it is possible to set up an English-based document flow and communications with local officials.
- There is no foreign exchange control in Hong Kong, so international banking transactions require minimal formalities
Companies incorporated in Hong Kong are obligated to retain accounting records and hold annual audits. This ensures economy transparency, which is so attractive to the international community and business. For companies that are incorporated to optimize taxes, these requirements entail insignificant additional expenses on neat document flow management.
Today, Hong Kong is chosen not only for practical reasons. The choice is also based on this jurisdiction’s respectability. The opportunities provided by this jurisdiction to a prudent entrepreneur are impressive indeed.
To receive answers to your questions regarding Hong Kong’s brilliant potential, please call our phone numbers in Hong Kong +852-23111757 or in Bratislava +421 911 809 166.