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)

HKCBA Calgary Chapter

“Using Hong Kong as a Gateway to China”

Daniel Booth

Vice-President

ICS TRUST (ASIA) LIMITED

8th Floor Henley Building Tel: (852) 2854 45445 Queen’s Road, Central Fax: (852) 2543 5555Hong Kong Email: [email protected]

Web: www.icstrust.com

20th October 2006

© ICS TRUST (ASIA) LIMITED. All rights reserved. Page 2

O p e n y o u r d o o r s t o A s i a

Why Hong Kong?Why Hong Kong?

“the strategic gateway for Asian business”

Hong Kong - is the bank

China - is the world’s factory



The Hong Kong AdvantageThe Hong Kong Advantage

• A reliable legal system

• Lower risk profile

• Developed banking and financial system

• Attractive tax system

• World class infrastructure



A Reliable Legal SystemA Reliable Legal System

• Based on familiar British common law system

• Transparent

• Effective legal institutions



Lower Risk ProfileLower Risk Profile

• An effective and efficient firewall• Protection of intellectual property rights• Transparency of the companies ordinance



Lower Risk ProfileLower Risk Profile

Alberta Company888 Inc.

Hong Kong Company 888 (Hong Kong) Limited

WFOEPRC

Representative Office

4. Hire Quality Control people 5. Hire Engineers 6. Hire Managers to liaise with

factories and Head office re purchases / shipment

7. Negotiation of business contacts & strategic alliance agreements with PRC Companies

1. Manufacturing 2. Trading 3. Selling domestically

where permitted



Developed Banking & Financial SystemDeveloped 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



Attractive Tax SystemAttractive Tax System• Territorial tax system – Onshore / Offshore

• Corporate tax of 0-17.5% on profits

• Maximum personal tax rate of 16%

• No capital gains tax

• No withholding tax

• No VAT or sales tax



Comparison of Taxes by JurisdictionComparison of Taxes by Jurisdiction

Canada

Gross Profit USD100,000

Expenses (40,000)

Net Profit before Tax 60,000

Tax (approximately) 45% (27,000)

Net Profit after Tax USD 33,000




Hong Kong

(Onshore)


Expenses (40,000)


Tax 17.5% (10,500)





Hong Kong

(Offshore)


Expenses (40,000)


Tax 0% (0)




YOUR COMPANYImporter (Canada) Inc

L/C VENDOR /FACTORY

In AsiaInvoice

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$ Payments $

cc. Purchase Order

PO PO

Direct Import ProgramDirect Import Program



World-Class InfrastructureWorld-Class Infrastructure

Container Port:

handled 21.93 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



3 Key Sound-Bytes To Take Away3 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!

Documents

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)