Hong Kong is one of the Special Administrative Regions of China. Before its handover to China on 1 July 1997, Hong Kong was a British colony for over 100 years. Under the principle of “one country, two systems”, Hong Kong has a different political system from China and has independent judiciary systems which have a high degree of autonomy.As one of the world’s leading International Financial Centres, Hong Kong has a major capitalist service economy characterised by low tax rates, simple taxation system, free trade, free market, no capital gain tax, no value added tax, tax-free opportunities for company registration conducting business outside of Hong Kong, no exchange controls and a very efficient banking system. In such a business environment, many foreigners and renowned international companies would choose Hong Kong as their regional office to enjoy tax benefits and excellent bank services. Without exchange or capital control, funds are freely allowed in and out of the territory very efficiently. Given the close geographical proximity to the vast and rapidly growing China market, there are opportunities for Hong Kong as one of the world’s major trading and financial centres. Thus, registration as a Hong Kong–based company can offer many advantages.