How to Take Advantage of Hong Kong's Business Platform for Expansion in China Capital Associates Luka Lu February 14, 2011 Opening Remarks 15:05-15:10 Ms Lore Buscher, Regional Director Europe Hong Kong Trade Development Council
By having a joint venture in China, it means even if you have a majority shareholding, by law there are certain matters that requires unanimous approval of the joint venture partners. It is easier for the majority shareholder to control the company if the joint venture is in Hong Kong.
It is easier to exist out of a Hong Kong company.
There are tax benefit to use a Hong Kong company .
Structure 3 allows the EuroCo to use the HK Holding Co to expand in other places in Asia.
Withholding tax rates on dividends, interest and royalties offered under the new agreement are among the lowest rates available compar ing with the other double tax treaties that China has entered into