Business in Hong Kong
The Open Economy
system in Hong Kong is well-known to the World. The legal
system of Hong Kong remains based upon that of England and
Wales, Common Law. Legislation is by locally enacted Ordinance
and, in practice, especially as the law applies to ordinary
citizens or business people from overseas, little has changed
Hong Kong is one of the world's reliable and efficient financial
centres. The advantages of no exchange control, sound legal
system and efficient transport/communication networks make
Hong Kong competitive in the world and keep continuous growth
Company Law (or "Ordinance") is basically using
the system in the United Kingdom and hence, the Law is similiar
to other developed countries and is more understandable.
Hong Kong Tax System is focusing on simple and easy to operate.
Income taxes (salaries tax, profits tax and property tax)
are charged on income which has a Hong Kong source. Estate
duty is charged on the principal value of property located
in Hong Kong passing on the death of the deceased. Stamp duty
is charged on instruments which relate to Hong Kong assets.
There is no capital gains tax and dividend income tax. The
standard tax rates are comparatively low with other developed
After China joined WTO, the role of Hong Kong is more important,
especially in acting as the Gateway to China and the finance
centre among China, Hong Kong and the World.