For those companies with the goods made in PRC mainland and exported to Hong Kong for sale, portfolio can be enlarged by entering into the overseas market, and there are various trading processes to fulfil it.
| ||Option 1|| ||PRC Co. exports and sells directly to overseas|| |
| ||Option 2|| ||PRC Co. exports and sells to overseas through HK Co. with contracts negotiated in HK.|| |
| ||Option 3|| ||PRC Co. exports and sells to Europe through HK with contracts negotiated outside HK. || |
Hong Kong Company can act as a middle agent of the trade, and increase the profits because HK has a lower tax rate. If the contract is negotiated and concluded outside of HK, then the profit made is excused from HK taxes. Through these carefully planned arrangements, maximum profits can be made.