A multi-country central bank digital currency (CBDC) project involving mainland China, Hong Kong, Thailand, and the United Arab Emirates has achieved a significant milestone by launching its minimum viable product (MVP) platform.This platform will serve as a testing ground for various use cases in cross-border transactions. As Project mBridge enters the MVP stage, the involvement…
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When discussing employment in Hong Kong, it’s crucial to consider the subject of handbooks and policies. Employment handbooks are typically used to govern employee behavior and are generally non-contractual. However, breaches of these policies may lead to termination, depending on the wording of the policy and the severity of the situation. Employment handbooks usually include…
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Every company operating in Hong Kong is subject to profits tax on its locally sourced profits. The two-tiered profits tax regime taxes the first HKD 2 million of assessable profits at 8.25%, while profits above that threshold are taxed at 16.5%. This regime does not apply to companies that are part of a group where…
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The Mandatory Provident Fund (MPF) System, a cornerstone of Hong Kong’s multi-pronged retirement protection framework, has been in operation since 1 December 2000. This system regulates mandatory, privately-managed, and fully-funded contribution schemes. Employees, employers, and self-employed persons covered by the MPF System must make regular mandatory contributions, calculated at 5% of the relevant income, subject…
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Apart from limited exceptions, the Employment Ordinance applies to all employees engaged under a contract of employment in Hong Kong. Employee rights are governed by the provisions of the Employment Ordinance, other applicable ordinances, their contracts of employment, and common law principles. All employment in Hong Kong is contractual, with no concept of “at-will” employment.…
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A non-Hong Kong company seeking to promote its business and engage with customers in Hong Kong can establish a Representative Office, similar to setting up a branch. This involves obtaining a business registration certificate. Key Facts: A Representative Office has no legal recognition and the parent company assumes implicit liability for its actions. Ideally, the…
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The two cities will leverage their competitive advantages to boost financial cooperation. Representatives from Hong Kong and Shanghai recently convened the ninth Working Meeting of Hong Kong-Shanghai Financial Cooperation, identifying areas for collaboration to strengthen the financial ties between the two cities.During the conference, Hong Kong’s Secretary for Financial Services & the Treasury, Christopher Hui,…
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To establish a branch of a non-Hong Kong company in Hong Kong, you must submit an application for registration to the Registrar and the Commissioner of Inland Revenue within one month of establishing a place of business in Hong Kong. Registration with the Registrar may not be necessary if the branch office is not used…
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Hong Kong ranks 3rd among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Hong Kong improved to 3rd in 2019 from 4th in 2018. Ease of Doing Business in Hong Kong averaged 3.33 from 2008 until 2019, reaching an all-time high of 5.00 in…
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