Advantages for Businesses
Summary of the legal framework for business
- According to Doing Business (world bank group), Hong Kong ranks second in the world in ease of doing Business, behind only Singapore and well above China, which is ranked at 91. It is also the second country in which it is easier for Border trade.
- According to Doing Business; the formalities for starting a business require three days. It is the country where there is greater ease of obtaining building permits, and although it is ranked 57 on ease of registering property, the time required is similar to the average of OECD countries.
- Stability in the rules of investment and ease of doing business especially compared to China, cause many companies to choose Hong Kong as a country to settle and then address the Chinese market.
Overall structure of the tax system
- The Tax system in Hong Kong follows a territorial basis, so that only local source incomes are taxed. Concepts such as residence or nationality are irrelevant for tax purposes.
- Tax rates in Hong Kong are among the lowest in the world, that is one of the reasons why many foreign companies choose the city as the venue for their business in Asia.
Foreign Trade Regime
- Processing of Imports: Hong Kong is one of the most open and liberalized economies. There are only tariffs in alcohol from above 30 degrees, hydrocarbons and methanol.