Hong Kong

An island in the South East part of Asia, close to Taiwan.  Until 1997, Hong Kong was under British administration.  In July 1997, Hong Kong was handed over to China by the United Kingdom. 

The population of Hong Kong is approximately 7 million. Hong Kong is a unique location for the incorporation of companies and for international business since its tax system is based on source and not on residence. 

Hong Kong has become the first place in terms of trading with the rest of Asia and also on a worldwide point of view and its tax system offers different advantages. Indeed, as long as a Hong Kong company does not conduct any business in Hong Kong, and does not generate any incomes from Hong Kong-based sources, the company will not be taxable in Hong Kong.

Main benefits of a Hong Kong IBC:

• Zero corporate tax

Companies registered in Hong Kong are not taxable provided that no transaction is carried out in Hong Kong. If this is not the case, the tax rate rises to 16.5% on profits made during the year

• Guaranteed confidentiality and protection

In accordance with local law, the names of shareholders and directors are required to be in public records. Some companies would prefer to be kept private although the identity of the beneficial owner can be kept out of public records. It is important to note that a company can legally appoint a nominee shareholder and a nominee director. Consequently, the withheld names are therefore inaccessible to public record.

• Large amount of DTAs

Hong Kong concluded more than 40 Double Taxation Agreements, which are signed in order to avoid or mitigate double taxation. Such treaties may cover a range of taxes including income taxes, inheritance taxes, value added taxes, or other taxes.