Business guide (HongKong)

Contents
Snapshot 2
Background 2
Political Structure 2
Policy Issues 2
Foreign Trade 3
Taxation 3
1.0 The Investment Climate 4
1.1 General 4
1.2 Political background 4
1.3 Economic structure 4
1.4 Currency 6
1.5 Attitude towards foreign investment 6
1.6 Banking and financing 8
1.7 Foreign trade 10
2.0 Labour Relations and Work Force 11
2.1 General 11
2.2 Employee benefits 12
2.3 Termination of employment 14
2.4 Rules for foreign nationals 15
3.0 Business Regulations 17
3.1 Registration and licensing 17
3.2 Price controls 21
3.3 Monopolies and restraint of trade 21
ii Hong Kong
Country Business Guide March 2003 © Deloitte Touche Tohmatsu, written in co-operation with the Economist Intelligence Unit
3.4 Intellectual property 22
3.5 Mergers and acquisitions 26
4.0 Foreign Investment 26
4.1 Foreign investment incentives 26
4.2 Restrictions on foreign investment 26
4.3 Exchange controls 27
4.4 Imports and exports 28
5.0 Choice of Business Entity 28
5.1 Principal forms of doing business 28
5.2 Branches 29
5.3 Setting up a company 29
6.0 Corporate Taxation 33
6.1 Current taxation 33
6.2 Capital gains taxation 35
6.3 Profit repatriation 35
6.4 Shareholder financing 35
6.5 Deductions 35
6.6 Loss relief 36
6.7 Consolidation 36
6.8 Reorganisations/Mergers & acquisitions 36
6.9 Foreign-earned income 36
6.10 Transfer pricing 37
6.11 Other taxes 38
6.12 Tax compliance and administration 39
7.0 Deloitte & Touche Offices In… 41
Hong Kong iii
Country Business Guide March 2003 © Deloitte Touche Tohmatsu, written in co-operation with the Economist Intelligence Unit
7.1 Hong Kong

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