World Wide Property Sales
Why Formation Company In Hong Kong
By Eric Hook
Being both the gateway to South China and the sea-routes nexus of Asia and the
world, Hong Kong enjoys unique geographic position advantages. As an
international finance and business centre, Hong Kong has been elected as the
freest trade district successively for ten years, by Forbes. Against the
backdrop of economic globalization, Hong Kong has become the springboard for
Chinese investors to the outside world and vice versa.
Business Environment
Being the centre of Asia, Hong Kong is also the most internationalized city in
Asia. It is always a dynamic metropolis known for its cultural mix of east and
west. As the freest economy in the world, Hong Kong has a sound legal system,
free flow of capital, a simple and clear tax system, low tax rates and complete
infrastructure, in short, providing a business environment of fair competition
for investors both home and abroad.
Diplomacy
At present, 58 countries have set up consulates in Hong Kong, and 54 countries
have set up designated consulates in Hong Kong, facilitating international
trades and citizen travel.
Legal system
The legal system in Hong Kong is based on common law, and is supplemented by the
local laws. The legal system of Hong Kong exercises the principle of judicial
independence. The law officers are not influenced by the administrative organ of
the government or the legislature, when performing their duties.
Tax system
Income tax : the tax rate is 17.5%, one of the lowest around the world.
Duty : All goods are exempt from the duty except for imported cigarettes, wine,
hydrocarbon oil and methanol.
Salary tax : the tax rate ranges from 2% to 20%, which is one of the lowest
around the world.
Exchange control
There are no exchange controls in Hong Kong, and the foreign exchange market is
developed with active trading. In addition, Hong Kong is the sixth largest
foreign exchange trading centre, with a state-of-art foreign exchange clearing
system.
Financial market
Hong Kong has the second largest stock exchange in Asia. In 2006, it surpassed
London and Tokyo and became the second largest fund-raising centre in the world
(the largest in Asia). By 2006, there were 975 companies listed on the Main
Board and 198 companies on the Growth Enterprise Market (GEM), with a total
market value exceeding 12 trillion Hong Kong dollars.
Banking services
Hong Kong is one of the cities with the most bank institutions in the world.
Among the top 100 banks around the world, 74 have a presence in Hong Kong. There
are 110 bank branches per 100 km2, it's the greatest density in the world.
Transportation
Hong Kong has an extensive transportation network comprising the airport,
railways, highways, container terminals, inland terminal depots and
trans-boundary transportations. The complete transportation infrastructures
closely connect Hong Kong and mainland China to the world, contributing to the
development of trade and logistics.
Company Incorporation
Most companies in Hong Kong are limited companies, where the shareholders assume
the limited liabilities proportionate to their subscribed equities, and the
standard capital requirement is 10,000 Hong Kong dollars.
Requirements for incorporating a limited company in Hong Kong
A) One shareholder and director above 18 years or more
B) Chinese resident or overseas person holding passport or ID card can
incorporate a Hong Kong Limited Company.
C) Additionally, a Hong Kong address must be supplied to be the registered
address and a Hong Kong resident or professional company must be act as
statutory secretary of the Company. QIDE can provide registered address and
Corporate Secretarial services.
D) The standard capital requirement is 10,000 Hong Kong dollars
More info about formation company in Hong Kong: http://www.hkcren.com