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Hong Kong and China Trade

Hong Kong is one of the most famous financial capitals of the world.

Its proximity to the PRC ( Peoples’ Republic of China) makes it the ideal launch pad for the entrepreneur who wishes either to import or to export goods to China.

The legal framework of Hong Kong is based on the English common law, supplemented by local legislation. The legal system in Hong Kong is therefore similar to the common law systems used in England and Wales and other Commonwealth countries.

The separation of the Hong Kong legal system from the rest of the PRC ( Peoples’ Republic of China) is guaranteed constitutionally until at least 2047.

The economic system is market oriented, with very little involvement of government intervention, the fact that Hong Kong has an established reputation for being a genuine trading and manufacturing hub rather than a tax heaven is the reason why so many investors prefer setting up a Hong Kong company as an offshore company for their international business.

For profits generated in Hong Kong the tax rate is only 16.5% of net profits, with no other tax systems such as VAT, business tax and capital gains tax it proves to be a very lucrative opportunity for the budding entrepreneur.

Any individual can be appointed as a Shareholder and Director of a Hong Kong company, with the requirement that there must be an appointed local Secretary and a registered office address for official correspondence.

No capital investment is required. The Shareholder is only required to sign up the agreement to declare that he or she will contribute capital to the company, and no actual capital investment is required.

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