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WHY INTERNATIONAL ENTERPRISES AND INDIVIDUALS CHOOSE

HONG KONG

FOR THEIR BUSINESS EXPANSION AND DEVELOPMENT?

A.   International Business Environment and Good Legal And Tax System

 

Hong Kong is one of TOP stock exchange markets in the world

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  1.  Asia : Hong Kong Stock Exchange ("HKeX") and Tokyo Stock Exchange ("TSE")

  2.  Europe : London Stock Exchange ("LSE"), French Stock Exchange (CAC 40) and                                                    Germany Stock Exchange ("DAX")

  3.  United States : New York Stock Exchange NYSE and NASDAQ

 

Since 1842, Hong Kong had been colonized by the United Kingdom. It was being developed as the international trade and business environment with the sound foundation of the Common Law. The Hong Kong jurisdiction is highly recognized by international enterprises.

 

SIMPLE TAXATION SYSTEM AND LOWEST TAX RATE

 

The taxation system is simple that every company has legal obligation to file tax on Profit Tax Return ("PTR") and Employer Tax Return ('"ER"). Profit tax rate is less than 8.25%. For companies that fulfill the offshore business requirements, they may be eligible to waive part of the profit tax.

B.   Reliable Banking System and Stable Foreign Currency Reserve

 

TOP 50 Safest World Commercial Banks in Hong Kong

 

Most of the international banks are registered to conduct business in Hong Kong.  The Hong Kong Monetary Authority governs the banking industries for a stable and sustainable financial system that supports a safe business environment.  

 

The Hong Kong Monetary Authority has built a proven track record to protect the Hong Kong financial system –

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  1.   Financial Tsunami like the Lehman Brothers subprime leading crisis in 2008

  2.   Declared war on speculators in 1997 to protect the currency system

 

The latest Foreign Currency Reserve Assets has been accumulated to US$426.4 billion as of September 2018 which demonstrated the stable financial foundation to support the business and economic environment. 

 

LINKED Exchange Rate System

 

Since 1983, the Linked Exchange Rate System has been established under the Currency Board System. This system requires both the Monetary Base and stocks to be fully backed by foreign reserves.

 

The Hong Kong dollar has been linked to US dollar at the rate of HK$7.8 to ONE US Dollar.

C.  Free Trade Policy And No Restriction Of Funds On Inflow And Outflow

 

As Hong Kong does NOT have limits and control on the import or export of foreign currencies, therefore it is very convenient for importers and exporters to operate the company receipt and payment cash flow.    

 

Over 70 of the largest 100 international banks operate in Hong Kong. They provide stable and reliable banking operations and banking facilities to support different business nature.

 

Other than banking system, it is also convenient to use online payment to empower business running smoothly and efficiently.

 

Meanwhile, the Cross-boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance (Chapter 629) is a declaration and disclosure system on the cross-boundary transportation large quantities of currency into and out of Hong Kong for the purpose of anti-money laundering and counter-financing of terrorism. The system does not restrict the freedom of legitimate capital.

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