Hong Kong's Government is currently seeking to encourage the development of greater e-commerce links with the Chinese mainland, especially since the launch of the CEPA programme aimed at increasing trade links.

The city in 1998 put forward its the "Digital 21" policy initiative. Digital 21 was positioned as a "comprehensive strategy" to enhance and promote Hong Kong's information infrastructure and services, and was overseen by the Information Technology and Broadcasting Bureau (ITBB).

With a sophisticated telecommunications infrastructure, Hong Kong offers access to broadband connectivity to more than 90% of all households. The take up of broadband services got off to a slow start, but a boom in broadband access took off in 2003. By early 2004, there were about 1.5 million broadband subscribers, representing about 35% of the total Internet subscriber base.

PCCW's ( Pacific Century CyberWorks) Cyberport set out to transform Hong Kong's Internet infrastructure. The Cyberport's goal was to provide the office and residential space for high tech ventures and their employees; the government provided one of the last undeveloped parcels of land on the Hong Kong island for the Cyberport in return for a share in the venture.

However, the Cyberport was unlucky with its timing, and when the first phase opened in 2002 only 80% of it quickly let, to five tenants including Microsoft.

Hong Kong, with its low taxes and its established position as a trade hub for Asia, has sought, in common with many other jurisdictions, to become a centre of E-Commerce development.

However, Hong Kong's fiscal structure, which taxes local source income, has meant that e-commerce operations in the SAR have often been advised to avoid entering contracts locally, which in turn might mean that servers would have to be located elsewhere.

On the other hand, there is no doubt that Hong Kong's legal regime is ideal for e-commerce, and its professional support services are excellent.

Geographically Hong Kong is well-placed both as a stepping stone into Asia and at a crossroads of the world's communications network - though such advantages are probably more psychological than practical. In theory at least, cyberspace knows no boundaries and the global nature of E-commerce allows it to be conducted anywhere.

This section of the Hong Kong site explores how e-commerce and e-business operations can take full use of the advantages the SAR has to offer.

THE LEGISLATION

• The Electronic Transactions Ordinance 2000
• Supervision of Internet Banking
• Other Government Initiatives

THE FACILITIES

• Hosting and ISP facilities
  
• Banking facilities
• Commercial Internet Development
• Online Financial Services

TAX-EFFICIENT E-COMMERCE

• Planning the Tax Structure
  
• What to locate in Hong Kong
  
• Offshore options for E-businesspeople

HONG KONG - E-commerce in the Hong Kong - The Legislation - The Facilities - Tax-efficient E-commerce

ISLE OF MAN - E-commerce in the Isle of Man - The Legislation - The Facilities - Tax-efficient E-commerce

GIBRALTAR - E-commerce in Gibraltar - The legislation - The facilities - Tax-efficient E-commerce

OTHER OFFSHORE E-COMMERCE JURISDICTIONS - Andorra - Aruba - Bahamas - Barbados - British Virgin Islands - Cayman Islands - Cook Islands - Costa Rica - Cyprus - Guernsey - Ireland - Jersey - Liechtenstein - Luxembourg - Madeira - Malta - Mauritius - Monaco - Netherlands Antilles - Panama - Seychelles - Switzerland - Turks & Caicos Islands - Vanuatu