Hong Kong companies are ideal entities for international cross-border trading. Hong Kong trade companies usually avoid local corporate income taxation due to the territorial tax assessment system. A multitude of various transactions are available including import and exportation of goods and the re-invoicing of goods and services. This is usually the purchasing of goods from China/Asian countries and their resale through the Hong Kong Company. As the sales of the Hong Kong Company are made outside the Hong Kong territory there is no income tax on the profits. The structure can also be employed for the provision of consulting services. Where used for the purchase of products in China, profits received can be managed to remain outside China for future investment uses within a trading group. In this structure, the Hong Kong trade company is seen as a separate entity due to the 'one country, two systems principle' of the region. Beyond mere re-invoicing, the Hong Kong Company can so contribute value to the resale process (e.g., product development, quality control and logistical services).

Hong Kong's first Double Income Tax agreement was with Belgium. The benefits of a tax treaty provide that withholding tax on Belgian distributions made to Hong Kong can be eliminated provided, the Hong Kong company holds a substantial interest in the share capital of the Belgian company. The reductions through Belgium are quite advantageous considering the freedom to utilize the European Union's Parent/Subsidiary Directive. This Directive eliminates withholding taxes on intra-European Union distributions of interest, royalties and dividends from Belgium. This link creates an attractive exit route from Europe.

Other common uses for Hong Kong companies include: