Smart move brings many advantages (hktdc.com)


	Sovereign Trust Director Jacques Scherman says businesses need to be in Hong Kong "simply because it's that good"

South African lawyer Jacques Scherman moved to Hong Kong three years ago to be Director of Sovereign Trust Hong Kong Limited, a subsidiary of British-owned Sovereign Group. He explains why it was the best move of his life - and why others looking to progress their careers need to be here, too.

"I had wanted to work in Asia, and Hong Kong was an obvious first choice. The city works primarily under the British common law system, and its world-class business and legal environment is very appealing to anyone working in these fields. Hong Kong is also a really interesting place and incredibly exotic for someone who has grown up in Johannesburg.

I was prepared for a culture shock, but there was none. Hong Kong is a very easy place both for making friends, and settling into the work environment. I was welcomed into this very social, friendly and dynamic place, and didn't find moving across was difficult at all.

Effort rewarded

Before arriving, I'd asked around to gain as much information as possible about Hong Kong, and was told it was a "work hard, play hard" city where the people are all career-focused, prepared to get stuck in, and where effort is rewarded. That turned out to be absolutely right. The workforce in Hong Kong is not only highly skilled and professional, but there is a very good work ethos, which I'm attracted to.

Sovereign Group has three core functions: we set up trusts and act as trustees for them; set up offshore companies; and advise people on how to best use those companies and trusts in order to mitigate their taxes. Essentially we set up the structure and consult on how it can be used to minimise tax within the law. Our typical clients are high net worth individuals, or guys who set up a company in the belief that they will be making a lot of money and so need a vehicle through which to run their businesses. Cross-border transactions are our specialty. Sovereign Group has a presence in 26 countries, and our clients are widespread - I can't think of any place in the world where we don't have at least one client.

Tax haven

There are many advantages to doing business in Hong Kong, but the main reasons are the benign tax regime, open economy and the pool of available professional, hard working people. Hong Kong is different from other tax havens (such as the British Virgin Islands) in that it is actually a trading jurisdiction in its own right and is in fact one of the world's largest economies. Hong Kong has an incredible infrastructure, with world-class professional services. This gives it massive credibility in the business world which not many other places enjoy.

Another huge advantage of Hong Kong is the ability to access China. Everyone wants to access the China market, (and/or) have their manufacturing base there. Hong Kong, as China's next-door neighbour, is the natural adjunct. Due to the geographical proximity, shared culture, and a newly signed Double Tax Agreement, Hong Kong residents and companies enjoy tax and administrative breaks that facilitate cross border relations. Hong Kong is therefore rightly described as the gateway to China.

I firmly believe Hong Kong will be the financial centre of the future, not only for Asia, but for the world. The competition posed by Singapore does not really hurt Hong Kong, instead it keeps the standards high and forces authorities to stay abreast of developments and the legislative steps they need to take in order to facilitate business.

Best place for business

And for start-ups, it is easy to get a company up and running here. The lifeblood of Hong Kong, in my view, is the fact that everybody here is trying to do business and make money, so it's a very friendly environment for entrepreneurs.

If you have any connection whatsoever with Asia (as a customer or supplier), you would be well advised to consider using Hong Kong as your base. Business people need Hong Kong simply because it's that good at what it does. This city puts you right in the thick of things, backed up by all the right infrastructure and a pool of human resources. There's just no better place to do business.

Hong Kong also supports an expatriate lifestyle. Salaries are good, taxes and crime are low, and you can live comfortably here feeling secure under the rule of law, while still enjoying the finer things in life. I would say that if you really want to work in a place that rewards effort, and gives everyone equal opportunity to build their career, you need to be in Hong Kong."