Background:
For more than a century and a half, Hong Kong has been called "the Pearl of the Orient". In 1843, the British took possession of what was then a small fishing village and, over time, concerted it into a thriving metropolis. In Asia, Hong Kong became the bastion of open trade, free port and rule of law - all of which were lacking in the surrounding region. And then in July 1997, the colonial era ended; sovereignty reverted to China; Hong Kong became a Special Administrative Region (SAR) of the People's Republic, with its own mini-constitution, the Basic Law.
Advantages of Hong Kong Company
01.Reduce Risk Exposure
As the investment in China is held by the Hong Kong incorporated company rather than by the foreign investor directly, there is no direct relationship between the foreign investor and the China investment.
02.Exchange Control
There is no exchange control in Hong Kong. Funds can be freely remitted into and out of Hong Kong without any restriction
03.Low Tax Rate
Hong Kong has the lowest tax rates among all the places in the world. Currently, the profits tax rate is 16.5% for incorporated businesses. There is no capital gain tax. Dividend income is also not subject to profits tax.
04.Banking System
Hong Kong has one of the best banking systems in the world. Almost every major international bank has its branch or representative office in Hong Kong.
05.Professionals
We have in Hong Kong a pool of professional expertise trained in all facets of international business: a skilled local workforce, which is well educated, computer-literate, productive, disciplined, and highly trainable;
06.Proximity to Mainland Chinese market
CEPA opens up huge markets for Hong Kong goods and services, greatly enhancing the already close economic cooperation and integration between the Mainland and Hong Kong.