Forming a company in Hong Kong gives entrepreneurs access to one of the world’s most modern economies. The International Monetary Fund has placed Hong Kong on a list of 34 "advanced economies".

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 2009 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 2010 Index of Economic Freedom.

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).

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.

Consequently, foreign direct investment (FDI) in Hong Kong reached US$63 billion in 2008 (US$45 billion in 2006).

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 forecasted to be trimmed by one percentage point every two years for the next 10 years.