Doing 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 since 1997.

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 of economy.

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 countries.

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.