Hong Kong is located in the South China Sea, off the south east coast of the People's Republic of China. Local time is 13 hours ahead of New York, seven hours ahead of Zurich, eight hours ahead of London and one hour behind Tokyo. Hong Kong has an international airport with daily flights to most major cities around the world.
Political environment in Hong Kong
Hong Kong is presently a British colony. Pursuant to the signing of a Joint Declaration by Britain and the China in 1984, the sovereignty of Hong Kong will be returned to the People's Republic of China ("PRC") on 1 July 1997. Thereafter, Hong Kong will become a Special Administrative Region of the PRC, governed under the Basic Law and the "one country, two systems" principle for a further period of 50 years.
Languages in Hong Kong
English is the official language and the most commonly used business language. However Cantonese is spoken by most of the Chinese population in Hong Kong. Mandarin is expected to become the official language, with English, from 1 July 1997.
Infrastructure in Hong Kong
Telecommunication facilities are excellent in Hong Kong. Hong Kong's fully digitalised telephone system and optical fibre networks provide state-of-the-art IDD telephone and facsimile services. Internet facilities are available.
Financial System in Hong Kong
The local currency is the Hong Kong Dollar, which is pegged to United States Dollar. Hong Kong is one of the largest global financial centres. There are no currency or foreign exchange controls in Hong Kong. Over 70 of the world's top 100 banks are licensed as banks in Hong Kong. They offer extensive and efficient international banking services and facilities.
Company Law & Taxation
Hong Kong company law is based on the English legal system. The Companies Ordinance (Cap.32) of the Hong Kong law provides for the incorporation and governance of companies in Hong Kong. A company may be in the form of either (i) limited by shares, or (ii) limited by guarantee, or (iii) without limited liability.
Each company must have at least two directors who may be corporations and need not be resident in Hong Kong. A company secretary and registered office must be maintained in Hong Kong. A company must have two registered shareholders. Bearer shares are not permitted. An annual general meeting of members must be held and an annual return filed each year. Accounts must be audited but need not be filed. Unless exempted all companies must file tax returns. Companies are subject to a 16.5% Profits Tax on profits earned from a Hong Kong source. Foreign source income is not taxable. Dividends are not subject to tax.
More detailed information is contained in our subsequent articles.
Asiaciti Trust Hong Kong Limited
Flat B, 11F On Hing Building
1-9 On Hing Terrace
Central, Hong Kong
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