Hong Kong is an Island in South-eastern Asia, near Taiwan.
Until July 1997 Hong Kong had been governed by the UK; then it was taken over by China.
Hong Kong has approximately 7 million residents. From the moment of introducing its tax system, which makes the obligation to pay taxes dependent on the place income is generated rather than on the company’s residence, Hong Kong has become a great place to incorporate a company and do international business.
Hong Kong has the best conditions for trading with other parts of Asia, and its tax system offers numerous advantages. In practice, as long as a Hong Kong company does not operate or generate income in the territory of Hong Kong, it needn’t pay taxes there. It only takes 1 day to incorporate a company in Hong Kong.
Taxation of limited companies registered in Hong Kong is exceptional as it depends on the place where profit is made, rather than on the company’s residence. As long as a Hong Kong company does not operate or generate income in the territory of Hong Kong, it needn’t pay taxes there.