Hong Kong is a low tax jurisdiction with companies paying tax at the rate of 17.5％ on local profits. The Hong Kong Government is keen to promote Hong Kong as a regional centre for Asia and offers an exemption to tax for companies registered in Hong Kong but transacting its business outside of Hong Kong. The effect of the exemption is that qualifying companies can operate tax-free. In summary Hong Kong is an established and highly regarded jurisdiction, has not been blacklisted by any regulatory authority, benefits from low taxes and has developed into an efficient base for doing business in China and throughout Asia. Most importantly businesses can operate in Hong Kong and enjoy the tax benefits associated with most tax havens without creating the negative image commonly associated with being based in a tax haven. Corporate and trust laws are virtually identical to the corporate and trust laws of the United Kingdom and most business activities are carried out behind the vehicles of limited companies, limited partnerships and sole proprietorships. Being a common law jurisdiction trusts are also widely used and understood. The chief factors driving Hong Kong's economic success are a combination of its non-discriminatory low tax regime under which only income derived from or arising in the jurisdiction is taxable and its geographical proximity and historical role for western trade with and investment into China.

Hong Kong is a major transhipment and re-export centre, activities which in turn fuel strong demand for trade support services such as banking and financing. In the wake of the Asian financial crisis new laws have been passed which encourage financial transparency such as the Organized and Serious Crimes (Amendment) Ordinance, which came into operation in June 2000. The law requires money changers and remittance agents to follow anti-money laundering measures such as customer identification and keeping transaction records for transactions over HK$20,000.

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