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Hong Kong (HK) is popular for investments and offshore company incorporation, having achieved first place in the “Index of Economic Freedom” fifteen years in a row (until 2009). The index takes into account factors such as business freedom, investment freedom, property rights and freedom from corruption. With one of the lowest corporate tax rates in the world (16.5%) and zero tax on foreign sourced income, HK is also an ideal jurisdiction for tax-efficient business, without being perceived as an international tax haven. Setting up a company in HK can take as little as 4 working days and with the aid of a professional services firm is relatively simple. The procedure is as follows:

- The corporate services firm collects the required due diligence and confirms the required services
- Legal, accounting and tax implications of company incorporation are settled with the professional services firm
- Company name availability is reviewed
- Professional services firm, and the client, discuss and agree optimum required corporate structure for new entity

* This includes the number of shareholders and directors

- Incorporation documents are delivered for signing and returned to corporate service firm for processing
- Service professional handles the business incorporation with the relevant government bodies
- Business incorporation in HK is complete

After forming a company in HK, new entities often face other important requirements in new business set up. These can include opening a corporate bank account, obtaining corporate and trade finance as well as merchant accounts, and identifying a local office space or virtual office.

World-class multi-currency accounts and internet banking facilities are readily available in HK. Entrepreneurs can choose amongst leading international banks that operate in HK, to open their corporate bank account for their new Hong Kong business, and will enjoy having no foreign exchange controls or restrictions on inward and outward investments -a selling point for operating international business from a HK office.

Marketing components such as the company website, search engine advertising and the company logo are other factors that play a major role in the success of a newly set up company.

Setting up a company in HK can ultimately be seen as a profitable, long-term investment for any business given the noted tax benefits, ease of incorporation and HK's position as a reputable, secure and effective jurisdiction. Furthermore, HK provides a gateway to China, the 3rd largest economy in the world.

Minimum requirements to set up business in Hong Kong:

-One shareholder
-One director, any nationality/residence
-Company secretary, either HK resident or HK company
-A registered HK office address
-Auditors, from firm of HK accountants
-Business Registration Certificate
-One person can act as director, shareholder and secretary, except if sole director, he/she cannot act as secretary
-No minimum share capital requirements

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Hong Kong is a renowned global business city, especially as a centre of financial markets. After New York and London, HK is recognized as the third largest financial hub in the world and this could improve further after Standard & Poor's rating for HK was improved to the highest triple A level rating. With a per capita GDP of approximately US$32,000 (IMF 2010 / current prices), the city's results are similar to that of the European Union and ahead of many larger nations. Considering the importance of the financial sector to HK's economy and the impact of the financial crisis, demonstrates why Hong Kong is a popular and valuable jurisdiction.

1. Social and Political Environment

Hong Kong holds impressive rankings in global business surveys such as being the most business efficient and the 2nd most economically efficient in the world (IMD World Competitiveness Yearbook). The country is also ranked as the 13th least corrupt country in the world (Transparency International – Corruption Perceptions Index 2010). HK has a stable economic and political environment with a pro-business government and an independent legal system. For these reasons it is not surprising that the country is a popular choice for regional operations in Asia, with 1,252 regional headquarters and 2,328 regional offices (Hong Kong SAR Government's Census & Statistics Department).

2. Location

Strategically located in close proximity to China, Hong Kong plays a vital role in accessing the Mainland China market for many foreign entrepreneurs. It is just one hour's drive from the world's largest manufacturing region, the Pearl River Delta, which produces 30% of China's exports. Hong Kong accounts for a large share of inward investment to Mainland China and China is the largest trading partner for HK. The country's reputation as a global financial powerhouse attracts Chinese companies for primary and secondary listings to access Asia markets. During 2010, the Hong Kong Stock Exchange (HKSE) became Asia's second largest stock exchange in terms of market capitalization, behind the Tokyo Stock Exchange (TSE). HKSE overtook Shanghai Stock Exchange partly because many Chinese companies also see the country as an efficient avenue to expand business within Asia. Being in the centre of Asia, HK is also efficient in terms of links to international markets. The HK airport is within 5 hours flight to all major trading jurisdictions in the region.

3. Infrastructure

Hong Kong is one of the most modern cities in the world. It is well equipped in terms of infrastructure such as transportation, telecommunications, IT connectivity and utilities. Combining the world-class international airport with efficient logistics facilities such as the cargo airport and shipping container port, makes HK attractive for international business that relies of efficient transport of human personnel and products around the world.

4. Policy and Taxes

Companies that incorporate in Hong Kong also benefit from its low and simple tax system. With a corporate tax rate of 16.5% (maximum) and personal income tax peaking at 15%, the country has the 3rd lowest tax misery in the world, as rated by Forbes' Tax Misery Index. Company registration in HK also benefits from having no sales tax or VAT, capital gains tax, no withholding tax or dividends tax and ultimately, despite providing such significant tax benefits, HK is not perceived to be an international tax haven.

5. Company Registration Requirements

The Hong Kong company registration process is relatively straight forward. The main requirements for HK company formation are: – confirming the company name and corporate structure – confirm the details to meet the HK company law requirements which include: i) minimum one company director (doesn't need to be resident in HK), a Hong Kong resident company secretary (director and secretary cannot be the same person), a minimum issued capital requirement of HK$1. – Register the business – Operational requirements such as opening a Hong Kong corporate bank account, setting up office (virtual office is an option), securing employment visas etc.

Hong Kong is an excellent location for international entrepreneurs to register their business. Besides benefiting from the geographic location to the booming China economy and an efficient tax system, HK is a diverse multi-cultural environment that is efficient for international business and exciting as a place to live.