Hong Kong is one of the best places in the world to conduct business and one of the three easiest tax compliance regimes, a study by the World Bank reveals. 

Based on the assessment of 183 economies, the annual "World Bank Doing Business" report ranks each based on various financial criteria, including ease of starting a business, insolvency resolution, cross-border trade and ease of paying taxes. The tax category was further assessed by 51 member and correspondent firms under Russell Bedford, the international network of accountants, tax advisors and consultants.

Hong Kong ranked second to Singapore in terms of the overall business environment and placed third in the list for ease of paying taxes. Companies in Hong Kong are required to make only three tax payments annually -- the lowest number for any economy in the world. Local businesses also take only about 80 hours per year to file taxes, compared to the 215-hour average in other Asian countries and 186-hour average in high-income economies. 

"It is gratifying to see Hong Kong once again ranked among the world's easiest tax regimes. This proves for a light regulatory environment in stimulating economic growth particularly for small and medium-sized businesses," commented James Ngai, partner at Russell Bedford Hong Kong. 

The report lists New Zealand on the third spot in terms of ease of doing business, followed by the US and Denmark. As regards paying taxes, New Zealand takes the lead, followed by Singapore and then Hong Kong. The World Bank rankings were benchmarked to June 2011.