Hong Kong is located in the South China Sea 100 miles south east of Guangzhou. As of 1st July 1997 under the Sino-British Agreement of December 1984, Hong Kong became a Special Administrative Region (HKSAR) of the People’s Republic of China. Hong Kong is not normally regarded as an offshore country as it is well known for being a major financial center in the world. The legal system of Hong Kong is British Common Law supplemented by locally enacted Ordinances. There is a bilingual legal system with Ordinances being translated into Chinese but English will continue to prevail. Under the “One country – Two systems” philosophy, Hong Kong has executive, legislative and independent judicial power. Hong Kong profits tax is only charged territorially on Hong Kong sourced income at a rate of taxation of 16.5%. There is no tax in Hong Kong on capital gains, dividends and interest earned.

Flader, Jr., Jack W.

Lipsher, Laurence

Odgers, Cathy

Lintern-Smith, Michael

Legislation (Source: Hong Kong Legal Information Institute)

• Banking Ordinance

• Companies Ordinance

• Limited Partnerships Ordinance

• Partnership Ordinance

• Recognition of Trusts Ordinance

• Trustee Ordinance

• Variation of Trusts Ordinance

Local Newspaper

• South China Morning Post

• The Standard

Other Useful Information