Hong Kong Company Registration

Hong Kong is a gateway to world’s second largest economy of China, with the added advantages of having an English-speaking population, and operating under the English common law. Moreover, the city is an important part of country’s ambitious Belt and Road Initiative, and is poised to benefit from the ongoing development of the Guangdong-Hong Kong-Macao Bay Area. It is a Special Administrative Region following China’s One Country, Two Systems policy, which means that Hong Kong follows a free trade policy, enjoying:

•  free movement of goods, information and capital
•  a free port status, meaning no tariff on general imports and easy customs procedures
•  sovereign (independent from China) participation in international forums
• no foreign ownership restrictions

To top it all, companies in Hong Kong benefit from one of the most tax-friendly jurisdictions in the world, which according to the World Bank’s Doing Business 2019 Report, is also the world’s lowest tax region.

Salient points about Taxation in Hong Kong

Not much taxation in Hong Kong

Hong Kong imposes:

• no estate tax
• no capital gains tax (note if real estate dealings are part of a profit-making business activity, the IRD may regard it as a business, and impose profits tax on such activities)
• no withholding tax
• no taxes on dividends
• no excise duty/tariffs on general imports
• no foreign exchange controls
• no Goods and Services Tax (GST), no Value Added Tax (VAT), no sales tax

Read more about Guide to Taxation in Hong Kong in Hong Kong Company Registration website.