AbacusHKCPA - Company Formation and Company Registration by Hong Kong Accountants (HKCPA)

Advantages

People form company to achieve different purpose, such as tax planning, risk diversification, investment, market entry etc.

Generally, Hong Kong companies are being used because of following advantages :

1. With British Legal System as background which is well adopted;
2. With English and Chinese as bilingual legal language;
3. With very low tax rate ( around 16.5% on net profit )
   • A Brief Guide to Taxes
4. Tax exempt for income not incurred in Hong Kong ( offshore income )
   • Simple Guide on The Territorial Source Principle of Taxation
   • Success Story
5. Allow nominee shareholder and director structure - beneficiary owner's identity can be hidden from public company record;
6. With very stable social and political environment;
7. With very active and freedom in financial activities. No restriction in fund transfer to and from most part of the world;
8. Close to and with excellent relationship with Mainland China;
9. Being international center of information exchange and transportation hub;
10. Enjoy convenience of international banking system;
11. With huge supply of high quality manpower;
12. Save legal and government fee when transfer of asset is effected by transfer of shares of a company holding the asset, rather than transfer of the title of the asset directly;
13. Winding up of the HK Company is relatively low in cost and simple in procedure - this may happen due to change of investment strategy, change of business environment etc.