Holding companies are special types of firms which can hold shares and assets without directly operating themselves. They are legal entities in their own rights and can pay dividends to a parent company as well as receive them from subsidiaries.
As economies of Hong Kong and China grow, the Hong Kong holding company formation started becoming increasingly relevant because of the benefits they can provide. With more than six in ten investment in China passing through Hong Kong having holding company based in the region to help reap significant dividends. More and more firms are looking to the east for business and the World Bank ranks Hong Kong highly on its ease of doing business report.
It also has a stable banking and legal sector. Formation of holding companies have always been easy to start in Hong Kong, their rules regulations and guidelines are so clear that makes it much easier for a new business to get started.
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