Hong Kong is one of the major financial centers in Asia that is traditionally used as an economic gateway to the Chinese market.
Hong Kong was a British colony until 1997. It then became a Special Administrative Region of China, due to the expiry of the Convention between Great Britain and China Respecting an Extension of Hong Kong Territory, which was signed back in 1898. Whilst thorough changes in the capitalist regime of Hong Kong were predicted, despite the actual change of the political status of Hong Kong, mainland China observes the principle known as “one country, two systems”, and today Hong Kong continues to be a paragon of capitalism as well as a popular jurisdiction for the registration of tax-free companies. Hong Kong is very useful for those with business partners from the Far East countries.
One of the advantages for companies incorporated in Hong Kong is that their tax-exempt status is not apparent to third parties. The foundation documents of non-resident Hong Kong companies do not, on the face of them, differ in any particular way from those of resident companies which are subject to a standard rate of tax of 16,5%. The privileged status of nonresident Hong Kong companies is based exclusively on the territorial system of taxation of income.
Due to this, companies incorporated in Hong Kong are highly rated by entrepreneurs despite the higher registration expenses associated with them. This is especially the case where there is an opportunity to work with business partners from the Far East.
It is important also to note that, according to the legislation of Hong Kong, the original registration documents of a company (namely the Certificate of Incorporation, the Memorandum and Articles, and the stamp of the company) must be kept in the registered office of the company in Hong Kong. Therefore, a standard set of documents of a company includes copies of the foundation documents, certified by the notary and apostilled.