Hong Kong is the greatest direct and foreign investment source in China. Hong Kong is the regional headquarter of offices representing many parent companies located outside Hong Kong, many companies around 81 percent are responsible for doing business across China, Making Hong Kong a Gateway to China.
Robust Legal System: Availability of the best quality legal services is a vital factor for companies and this use Hong Kong being as a regional center. Hong Kong has professional advisors practicing soliciting, barristers and very many certified public accountants. Overseas jurisdictions are doing it fine in Hong Kong. These can give the advice on matters concerning law. The vast knowledge of Hong Kong law practitioners in China Mainland Market and regulatory framework, this facilitates transactions involving in China hence Hong Kong becomes a gateway bridge between international and China markets.
Effective Dispute Resolution: Hong Kong has most efficient judicial systems and settlement mechanism which deal with all business factors when conflicts arise. Hong Kong gives a very cost efficient and solutions. Under the Mainland judgments of China, some decisions are made by Hong Kong or China courts; Hong Kong Is highly favored by China in this Arbitral cases. With legal expertise, Hong Kong is recognized internationally as most useful in dispute resolution
Closer Economic Partnership Arrangement with mainland: Hong Kong has a significant advantage under region financial arrangement this has a fundamental role in making cooperation with China, looking at areas of trade investment facilitation in the promotion of the joint development of the two parties. Hong Kong is prominent liberation in goods and facilities in China market entry it Assumes a crucial part in reinforcing participation between Hong Kong and China in zones of the fund, exchange, and speculation assistance and advancing mutual success and advancement of the two elements. Conspicuous particular progressions for merchandise and enterprises of Hong Kong to enter the China. WTO guarantee of China, to add to the popularity of Hong Kong as an improper for responsibility commercial in China. All the products complying with mainland cooperation, international companies that use Hong Kong that makes connection with consumers and suppliers in China making Hong Kong a Gateway
Languages and Accessibility: Hong Kong has got Chinese roots of culture with British as a colony, Chinese and English act as official languages in Hong Kong and these are essential in business. The strategic location of Hong Kong as a central hub in the Pacific Asia areas. Hong Kong is the third world busiest container port. Hong Kong has an International Airport and this the most mobile Cargo gateway in the world. There are two planned runways to increase capacities. The construction of Zhuhai-Macao Bridge expected to be complete making economy grow double
Banking and Finance: As a vital financial and business Centre, over 100 banks are in Hong Kong making transaction much easier and faster many companies are involved and listed in capital market and security and stock exchange this has made Hong Kong A gateway to China.
Common ways to use a company in Hong Kong
– Establishing a Hong Kong trading company for purchasing activities with China and the Asian market. The Company can enjoy significant tax and operational benefits without a China mainland entity.
– Using a Hong Kong Company as a re-invoicing center for purchases from China and other Asian countries and accumulate profits at favorable tax rates. The corporate tax on profits is 16.5%, but if the profits of a Hong Kong Company are generated through offshore business, they are tax free.
– Establishing a Hong Kong company to hold and set up a representative office to create a presence in China.
– Using a Hong Kong company as the holding company to set up representative office and invest in mainland China, using this offshore company to hold their operations in China.
– Setting up a Hong Kong company to hold the trademark for the company and to benefit from the stable legal system in Hong Kong.