Offshore Incorporation

Wanting to become the world’s most business friendly destination, Hongkong is cutting state taxes on salaries and corporate profits down to 16.5% and 15% respectively by 2009. This is further made sweeter by the fact that the actual taxes paid are even lower after various deductions and depreciation allowances. This will make Hongkong, in terms of taxation, more attractive than Singapore, which has just announced a reduction in its corporate income tax to 18%.

Competition for investments in the region is quite intense as other business areas record encouraging growth rates. Other than Singapore which posted a 17% growth (last year) in the financial services sector, another stiff competitor is Shanghai which hosts China’s biggest stock, futures, forex and interbank bond markets.

Hong Kong