Hong Kong's economy is sophisticated and dynamic, based largely on services. Hong Kong is one of the world's top four financial centres, and is also one of the world's wealthiest country in terms of gross domestic product (GDP) per capita. This economic base provides a strong domestic consumer market, which encourages entrepreneurs to establish a company in Hong Kong to tap potentially rewarding local markets.

The regulations for establishing a company in Hong Kong are laid out in the Hong Kong Companies Ordinance of 1997. When establishing a company in Hong Kong, only one director and shareholder is required. There is no requirement for either to reside in Hong Kong, making this entity desirable to global entrepreneurs. Furthermore, shareholders can be either individual persons or companies. The minimum authorised share capital for a Hong Kong company is a minimal HK$1.

Since Hong Kong imposes neither goods and sales tax (GST) it is not necessary for the company to register for GST.

After establishing a company in Hong Kong, annual financial statements and an annual corporate tax return are submitted to Inland Revenue Department (IRD) by 31 March each year.

Unfortunately, Hong Kong has a very limited network of comprehensive double tax treaties signed only with China, Thailand, Vietnam, Belgium and Luxembourg. As a result, this makes a Singapore company a more attractive corporate structure for some entrepreneurs.