About Hong Kong jurisdiction
About Hong Kong
The Hong Kong Special Administrative Region, which literally means “perfumed port”, belongs to the Republic of China. This cosmopolitan region contains about 7 million people of all nationalities (British, Japanese, American, French, Canadian), who are for the majority expatriates employed by multinationals or entrepreneurs. Having been a British colony until 1997, Hong Kong is actually different from the rest of China. The basic law, which establishes its political system, obeys the principle of “a country with two systems”. This region has therefore been able to retain its legal system based on common law, its own currency and its own political system.
Hong Kong is the third largest financial place and eighth largest trading power in the world. This region is often considered the most liberal place in the world. Tax legislation is very flexible. Moreover, the unemployment rate in Hong Kong is one of the lowest in the world and per capita income is eleventh in the world ranking. The tertiary sector is the bulk of Hong Kong’s economy. Indeed, Hong Kong has seen an increase in its standard of living, which has led to a large expansion of services, which have outpaced industrial activities since the 1970s. Hong Kong’s economy depends largely on its trade because the value of exports and imports is greater than the region’s GDP. Finally, investment and tourism also play an important role in Hong Kong.
The jurisdiction of Hong Kong is very stable and has a very good reputation. Indeed, Hong Kong institutions have a certain reliability and the financial system of the region is solid. This jurisdiction is therefore a favourable framework for doing business. Because the Hong Kong legal system is based on common law, there is relative flexibility in the creation and operation of companies, so it may be worthwhile to set up an offshore company in Hong Kong.
The Hong Kong tax system is based on territoriality. Any Hong Kong-based company that does not have any commercial activity in the territory (no customers, suppliers or staff), will not be taxed on its profits. In the case of companies with a commercial activity in Hong Kong, the tax on profits from activities in the territory will be 16.5%. It is important to note that the fact that your company has a bank account on Hong Kong territory and receives client transactions is not considered in the taxation of companies in Hong Kong. There is also no consumption tax (VAT) in this jurisdiction. Finally, there is no tax on capital gains, interest or dividends, as well as on the repatriation of the latter.
Hong Kong is not considered by the OECD to be a tax haven and this jurisdiction is included in its “white list” of cooperative jurisdictions in tax matters. Hong Kong has signed non-double taxation agreements with certain countries, but not with France. Finally, it should be noted that companies have to keep their accounts properly and update it. Foreign companies must also have a register of directors, general secretaries regularly updated.
Open an offshore bank account with FBS Banking™
The banking sector is one of the pillars of Hong Kong’s economic activity. Branches of most of the major foreign banks were opened, which enabled the country to become an international financial centre with success in offshore banking. Hong Kong has a very liberal economy. This jurisdiction combines simplicity with efficiency and security. Indeed, it is reputed to have a flexible regulation while having a very high level of security.
Hong Kong is one of four Asian dragons and is the world’s third largest financial centre. It is quite natural for a company that would like to develop internationally to think about this jurisdiction for the opening of a bank account abroad. In this dynamic jurisdiction, you can benefit from a multi-currency bank account, a range of bankcards, a simple and efficient Ebanking platform and a certain security. FBS Banking™, with more than 20 years’ experience in the offshore banking sector, is the intermediary you need for the opening of this bank account.
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