Forming a Company in Hong Kong


Forming a Company in Hong Kong
Forming a company in Hong Kong offers a wide range of financial support services, international investors in Hong Kong access superb global market opportunities. As a global financial centre, Hong Kong boasts a sophisticated economy friendly to businesses and entrepreneurs. The following is an overview of Hong Kong from an economic and regulatory viewpoint.
1.	Based on UK common law, Hong Kong’s legal system remains largely autonomous from China, and enjoys a good international reputation. The city's political and legal system is positively ranked as the world’s 12th least corrupt in the 2008 Corruption Perceptions Index by Transparency International, a measure of corruption among public officials. Furthermore, Hong Kong’s transparent legal system and constitution, which strongly supports rule of law and the protection of intellectual property rights, is a key factor in its ranking as the world’s freest economy in the Heritage Organisation’s 2008 Index of Economic Freedom.
2.	When forming a company in Hong Kong enter one of the world’s most modern economies, placed on the International Monetary Fund’s list of 31 ‘advanced economies’.
3.	Because of the above, Hong Kong is a preferred global headquarters for more than 4,000 international organisations. More than 80,000 limited liability companies are incorporated in Hong Kong.
4.	Foreign investors forming a company in Hong Kong should note that foreign income remitted to Hong Kong is legally tax-exempt, making Hong Kong an attractive jurisdiction for wealthy entrepreneurs to reside. In 2006 Hong Kong boasted 87,000 US dollar millionaires (77,200 in 2005).
5.	Corporation tax in Hong Kong is a flat 17.5% of trading profits earned in Hong Kong. A Hong Kong company's international profits are legally tax-exempt if international income is not remitted to a Hong Kong bank account. In these circumstances, to achieve legal tax exemption most business people remit their revenues into a bank account in another jurisdiction, for example Singapore. Corporate profits tax is expected to be trimmed by one percentage point every two years for the next 10 years.
6.	Consequently, foreign direct investment (FDI) in Hong Kong reached US$56 billion in 2007 (US$45 billion in 2006).
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For more information on Hong Kong business formation, email email@healyconsultants.com or call us in Hong Kong at (+852) 8331 1911.
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