Hong Kong has long been the transition area between the English and Chinese speaking worlds, with a well-established balance of Western and Eastern cultures. It is the gateway to China for many business owners, and has enjoyed a stable government and transparent common law legal system for many decades.

It is also ranked as the world\'s freest economy - which has led company formation services the world over to recommend Hong Kong as the preferred jurisdiction for offshore investment businesses for years now. We look at why the world\'s third-largest financial centre, and gateway between the West and the East, is the first choice for so many company formation services professionals.

Hong Kong has been well-established as a base for offshore investment businesses for some time now. There are currently more than 2,100 organizations with regional offices in Hong Kong SAR, and 800 that international companies use Hong Kong as their base. The transparency of government and prevailing Western concept of fairness are some of the most attractive features for organizations that are uneasy about moving overseas. All companies operate without fear or favor in Hong Kong, and there are no nationality restrictions on ownership, as with so many jurisdictions for offshore investment businesses.

Well-established and respected names in company formation services and business consultancy management, like Zetland Fiduciary Group, choose to call Hong Kong home. This is one of the strongest recommendations for the SAR as a business base. The central location and transparent government set Hong Kong above many others, especially for corporate services professionals like these.

The potential tax-free status of profits for many companies with clients outside Hong Kong is the most alluring factor for organizations looking to move offshore. Companies like Zetland Fiduciary Group are experienced in determining whether your company\'s profits will be assessed as liable for tax by Hong Kong\'s revenue department, or not. Dependencies for tax-free status include the location of suppliers and clients, and the purpose of the Hong Kong arm of the company. Capital gains tax is not levied in Hong Kong, and there is no tax on interest or investment income from foreign sources.

As a major international banking center, company formation services like Zetland often recommend Hong Kong for offshore banking investments. Setting up multi-currency accounts is fairly straightforward, and reporting on transactions is not required. There are no transaction restrictions, however Hong Kong does have money laundering legislation, which helps maintain its image as a \'clean\' jurisdiction for offshore investment businesses. Hong Kong is geared more towards medium and large international enterprises, with a minimum requirement of 2 directors and 2 shareholders, a Hong Kong resident company secretary, and a physical registered office. However, the directors and shareholders need not be resident in Hong Kong.