Hong Kong is know as leading financial and business hub in asia region, The government of Hong Kong acclaimed for preserving the business-friendly environment and sustaining the city's reputation as the ease in doing business. The government adopts economic policies of free enterprise and free trade. Therefore, entrepreneurs all over the world are setting up companies in Hong Kong.
The business environment is competitive and yet full of business opportunities, especially for small and medium-sized enterprises (SMEs). SMEs are the backbone of the Hong Kong's economy, and comprise 98% of business entities in Hong Kong.
A simple taxation system is the major attraction for doing business in Hong Kong. The profit tax is on a flat rate of 16.5%. More importantly, profit arising outside of Hong Kong is not taxable. There is no sales tax, VAT, or dividends tax in Hong Kong.