Hong Kong became the first Special Administrative Region of the People’s Republic of China on 1 July 1997. Under the principle of “one country, two systems”, the legal system of Hong Kong continues with the common law tradition established under British rule, and is completely autonomous.

International Rankings

• Hong Kong is the 3rd most important leading international financial centre, after London and New York.
• It ranks 1st in the Index of 2014 Economic Freedom (Heritage Foundation).
• It ranks 7^th in The Global Competitiveness Index 2014-2015 (World Economic Forum).
• Hong Kong dollar, the currency of Hong Kong, is the 13th most traded currency in the world. (Bank for International Settlements, 2013)

Advantages of Hong Kong as an International Business Centre

• Hong Kong is a Low Tax Centre (Current Profits Tax Rate is 16.5%). Offshore transactions are not subject to Hong Kong tax, and only profits derived in Hong Kong are assessable.
• Hong Kong maintains a simplified tax system. There are no inheritance tax or estate duty, no tax on dividend, no tax on bank deposits interest, no capital gain tax,no VAT/GST, no withholding tax except on royalties.
• The Hong Kong Dollar is a stable currency and is pegged to the US Dollar at the fixed rate of HK$7.8 to US$1.0. There is no foreign exchange control in Hong Kong. Profits generated in Hong Kong can be repatriated to overseas holding companies with no withholding tax.
• Hong Kong is a major international financial centre, comprising an integrated network of institutions and markets which provide a wide range of products and services to local and international investors.
• Hong Kong has one of the highest concentrations of banking institutions in the world. Seventy out of the world’s top 100 banks have their operations in the city.
• Hong Kong is regarded by many as a beachhead for establishing business in China, and is a one of the premier offshore Renminbi business centres.
• Hong Kong’s sophisticated telecommunications system provides fully digitized voice and data networks.
• With a world-class airport, Hong Kong is connected by direct flights to all major international destinations.