HongKong is an international metro with abundant information and the freest trading port in the world. Together with sound infrastructure and complete legal system of its own, it provides an advantaged commercial environment to many enterprisers and traders. Therefore, more and more traders of hinterland establish their own companies in HongKong on different purposes and expand business of the company by different ways, which improves not only the image of the company but also the competitive ability of the company itself. Below is advantages in detail of establishing companies in Hongkong：
(1) Freedom of Name Selection：Regardless of register capital, Hongkong government allows names containing words such as international, group, controlling, industrial, investment and so on.
(2) Few Restrictions on Business Scope：Finance, medicine, shipping, trade of imports and exports trade, real estate, construction, decoration and upholstery, information network, tourism, academy, literature publication, association, institute and other hi-tech industry can fall into our business scope.
(3) Low-taxation Environment Benefiting Development：Hongkong has low tax rate and few tax types. Many international facilities take advantage of Hongkong's taxation system to avoid taxes reasonably. Establishing company in Hongkong, we need only to pay two kinds of taxes：One is one-off stamp tax of register capital, at the rate of 1/1000，which is subject to your actual register capital；The other is profit tax at the rate of 16%, which is subject to our actual profit（net profit）. If no profits, there are no taxes. Except cigarettes and wines or special products, Hongkong has no tax of import and export.
(4) Little Register Capital and No Need of Capital Examination： Arrival of register capital influence the decision of board directors of whether they should establish the company or not. In Hongkong, no matter how much register capital is, you don't need to transit the capital into Hongkong Bank. The lowest register capital required by Hongkong government is 10000 HKD, which will be lifted according to actual situations.
(5) The Window of Expending International Market and the Springboard to Enter Into Hinterland Market of China：Due to special historic conditions and geographical location of Hongkong, it creates favorable conditions for hinterland enterprises to develop to the outside. Therefore, establishing a company in Hongkong as a foreign-oriented window can easily win trust and cooperation of foreign enterprises; On the other hand, oversea investors like to set up regional head office in Hongkong since China is at the beginning stage of open and reform, regarding Hongkong as a springboard for investing in China.
(6) Winning International Credit and Loan Easily：As is well known, Hongkong is the economic center and financial center of Asia, banks scattering every street. We can make use of the credit of Hongkong banks, which is the base of developing international business. Obtaining the credit, we can utilize Hongkong this financial center for financing and also can open letter of credit to oversea enterprises and do great business by quite small capital. If necessary, we can apply for aiding loan for Middle or Small Enterprise from Hongkong government and invest this sum of capital into the market to gain profits.
(7) Free in-out of People, Materials and Fund：Hongkong is most free and prosperous trading port in the world with excellent infrastructures. What going freely in Hongkong is not only people, materials but also capital. People in and out freely is reflected by the fact that Hongkong has passport exemption agreement with over 100 countries, a plan of passport exempted tourism will be put out in Jujiang Delta in the near future；Material in and out freely is mainly reflected by the fact that no duty bears on goods in and out and materials transported by sea, land and air are handled by high speed；Capital in and out freely is reflected by the fact that there is no restrict on foreign currency, all kinds of foreign currencies able to be exchanged and moved anytime, and also no restriction on capital turnover. Traders prefer Hongkong for reception and sending the letter of credit by right of the convenience of Hongkong Bank.
(8) Utilizing the Fame of Hongkong and Creating Hongkong Name brand：Owing to Hongkong's remarkable international status, newly established enterprises like to use its fame to make up themselves. For example, garments, toys and cultural publishing etc trades have fairly competitive advantages in the world. If you establish this kind of companies in Hongkong, you can share the overall international image and position and improve competitive ability of your company in certain degree.
(9) Try for Acquirement of Residence Right of Hongkong：If your company has made contribution to Hongkong, you are then in a position to apply for frequent reciprocation commercial visa from Hongkong People Entrance Affairs Office. Staying for 7 full years, you can obtain permanent residence right in Hongkong. Within this year, Hongkong government will put out investment immigration plan. For information on this aspect, please pay attention newsletter released by Hongkong government.
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