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Often referred to as "the gateway to China", Hong Kong companies are ideally suited for those trading or dealing with the lucrative Chinese market.
The appeal of Hong Kong spans the globe, however if your company will have Chinese business, or deal with Asian clients, Hong Kong offers a perfect combination of cultures and languages to encourage business relations.
Its geographical proximity to mainland China is complemented by a knowledgeable, multilingual workforce, a well-developed financial and fiduciary services industry and a stable, non-corrupt judiciary and legal system. A favourable Double Taxation Agreement with the mainland grants Hong Kong companies preferential withholding tax rates on income paid by a Chinese subsidiary for dividends, royalties or interest payments.
Using a Hong Kong company to satisfy to local partners in China and other regions will also provide a valid commercial rationale for existing in the jurisdiction, something which will count positively towards the Hong Kong company should another jurisdictions' revenue department seek to claim it as transparent for taxation purposes under Controlled Foreign Companies legislation.