Hong Kong, of course, well known as a major international center. It is located on the South East Coast of China and became part of China on the 01st of July 1977. It is a Special Administration Region (SAR) within the People’s Republic of China with its own Legislature and Courts. English and Chinese are the official languages and incorporation documents may be in either language or both.
There is no “Offshore” legislation in HK. All companies are incorporated under the same legislation, whether they are doing business locally or “offshore”. (HK Company Ordinance, 1997 version, as amended 2004). What makes HK companies similar to offshore companies, such as those incorporated in the British Virgin Islands (BVI) is the tax free status of such companies, under certain circumstances. If a HK company does NO business in HK and derives no income from HK sources, then it is not taxable in HK. So as long as a HK company does business anywhere else in the world, it is in effect, an offshore company, similar to BVI, IBC’s.
HK companies are advantageous because they are not perceived as “tax havens”. The Legal system is based on British common Law. The political environment is stable. Finance and Banking is excellent and there are no exchange controls. A HK company may do business anywhere in the world and there is no requirement of Directors and Shareholder’s to be resident in Hong Kong.