Russian corporations can leverage Hong Kong and China to expand globally by utilizing Hong Kong’s financial hub status, low tax regime, and access to the Hong Kong Stock Exchange (HKEx), alongside China’s vast consumer market and manufacturing capabilities. Strategic entities like holding companies, trading hubs, joint ventures, or wholly foreign-owned enterprises (WFOEs) enable access to capital, markets, and innovation. However, geopolitical challenges, including Western sanctions and regulatory scrutiny, require careful compliance and professional guidance to mitigate risks and ensure sustainable growth in these dynamic regions.

Hong Kong’s tax system offers businesses a powerful platform for tax optimization through its territorial tax basis, low profits tax rates (8.25% on the first HKD 2 million, 16.5% thereafter), and the Foreign-sourced Income Exemption (FSIE) regime. By establishing a Hong Kong entity, companies can leverage exemptions on foreign-sourced income, such as dividends and IP earnings, and benefit from over 40 Double Taxation Agreements (DTAs) to minimize cross-border tax liabilities. Strategic structuring, like using holding companies or treasury centers, further enhances efficiency. However, compliance with strict conditions and professional guidance are essential to navigate regulations and maximize benefits in this dynamic financial hub.