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HKCBA Calgary Chapter “Using Hong Kong as a Gateway to China” Daniel Booth Vice-President ICS TRUST (ASIA) LIMITED 8 th Floor Henley Building Tel: (852)

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Presentation on theme: "HKCBA Calgary Chapter “Using Hong Kong as a Gateway to China” Daniel Booth Vice-President ICS TRUST (ASIA) LIMITED 8 th Floor Henley Building Tel: (852)"— Presentation transcript:

1 HKCBA Calgary Chapter “Using Hong Kong as a Gateway to China” Daniel Booth Vice-President ICS TRUST (ASIA) LIMITED 8 th Floor Henley Building Tel: (852) Queen’s Road, Central Fax: (852) Hong Kong Web: 20 th October 2006

2 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 2 Why Hong Kong? “the strategic gateway for Asian business” Hong Kong - is the bank China - is the world’s factory

3 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 3 The Hong Kong Advantage A reliable legal system Lower risk profile Developed banking and financial system Attractive tax system World class infrastructure

4 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 4 A Reliable Legal System Based on familiar British common law system Transparent Effective legal institutions

5 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 5 Lower Risk Profile An effective and efficient firewall Protection of intellectual property rights Transparency of the companies ordinance

6 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 6 Lower Risk Profile Alberta Company 888 Inc. Hong Kong Company 888 (Hong Kong) Limited WFOE PRC Representative Office 1.Hire Quality Control people 2.Hire Engineers 3.Hire Managers to liaise with factories and Head office re purchases / shipment 4.Negotiation of business contacts & strategic alliance agreements with PRC Companies 1.Manufacturing 2.Trading 3.Selling domestically where permitted

7 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 7 Developed Banking & Financial System Hong Kong is…...the world's ninth largest international banking centre...host to: 71 of 100 largest banks represented in Hong Kong 131 licensed banks Additional 85 represented offices of foreign banks from 31 countries

8 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 8 Attractive Tax System Territorial tax system – Onshore / Offshore Corporate tax of % on profits Maximum personal tax rate of 16% No capital gains tax No withholding tax No VAT or sales tax

9 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 9 Comparison of Taxes by Jurisdiction Canada Gross ProfitUSD100,000 Expenses (40,000) Net Profit before Tax 60,000 Tax (approximately) 45% (27,000) Net Profit after Tax USD 33,000

10 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 10 Comparison of Taxes by Jurisdiction Hong Kong (Onshore) Gross ProfitUSD100,000 Expenses (40,000) Net Profit before Tax 60,000 Tax 17.5% (10,500) Net Profit after Tax USD 49,500

11 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 11 Comparison of Taxes by Jurisdiction Hong Kong (Offshore) Gross ProfitUSD100,000 Expenses (40,000) Net Profit before Tax 60,000 Tax 0% (0) Net Profit after Tax USD 60,000

12 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 12 YOUR COMPANY Importer (Canada) Inc L/C VENDOR / FACTORY In Asia Invoice YOUR CUSTOMER [e.g. Walmart] Direct shipment of goods from vendor/factory to customer YOUR NEW HK CO. Imports (H.K.) Ltd. L/C Invoice Payments$ cc. Purchase Order PO Direct Import Program

13 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 13 World-Class Infrastructure Container Port: handled million TEUs in 2004, making it the world's busiest port. Hong Kong International Airport: is one of the world's busiest airports processing about 36 million passengers and 3 million tonnes of air cargo per year. Road: 1,831Km of highway, with direct road links to entire Pearl River Delta region Rail Direct links to Guangzhou, Shanghai and Beijing Territory-wide rail carrying 2.4 million passengers daily Communications Broadband Internet connection is available to over 98% of households and more than 95% of business buildings. Household penetration rate is 62% Workforce High percentage of Bachelor Degree level or above Easy access to English speaking staff

14 © ICS TRUST (ASIA) LIMITED. All rights reserved. O p e n y o u r d o o r s t o A s i a Page 14 3 Key Sound-Bytes To Take Away Why do business in Hong Kong? Hong Kong is a well developed, low-risk option for SMEs and Entrepreneurs. Hong Kong offers a familiar, efficient, and business-friendly environment. Hong Kong - it’s your reliable gateway to China!


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