Why Hong Kong?
Hong Kong’s appeal is threefold: a dynamic city with strong growth prospects; a gateway to opportunities in Mainland China; and a regional base for expansion across Asia. Stable, business-friendly and cosmopolitan, Hong Kong is the perfect location for your business.
Our partners Invest Hong Kong tell us why the city is the right place to propel your business to the next level:
Easy to set up
Setting-up a company in Hong Kong is very simple and does not require a lot of time and investment. You can incorporate a limited company in a week, even in a day if you take up an existing company. There is no minimum capital in Hong Kong and a foreigner can have 100% of the shares of a private limited company.
Hong Kong is ideally located for growing companies that want to do business with Mainland China and Asia. It enjoys peerless transport connections. Hong Kong is strategically located at the heart of Asia, alongside many of the region’s most exciting business markets.
- Strategically located for business in Asia.
- Beijing, Shanghai, Singapore, Taipei, Manila, Kuala Lumpur and Perth are in the same time zone as Hong Kong.
- Bangkok, Jakarta, Seoul and Tokyo are within one hour’s time difference.
- Over 100 airlines offer flights to about 180 locations.
- All Asia’s key markets are less than four hours flight away.
- Half the world’s population is within five hours flight time.
- About 1,000 daily flights between Hong Kong and the rest of the world.
Low and simple tax regime
According to the 2014 Paying Taxes* study of 189 economies, Hong Kong has one of the most tax-friendly economies in the world.
The city only imposes three direct taxes and has generous allowances and deductions which reduce taxable amounts. These are the tax rates in Hong Kong:
- Profits tax is capped at 16.5%
- Salaries tax is a maximum of 17%
- Property tax is 15%
No taxes are imposed in Hong Kong on the following:
- No sales tax or VAT.
- No withholding tax.
- No capital gains tax.
- No tax on dividends.
- No estate tax.
Hong Kong is also a free trade zone. Only spirits, tobaccos and personal vehicles are subjected to import tax.
Rule of Law
The legal environment remained unchanged after the retrocession in 1997. All are equal before law. HK's legal system is separate from Mainland China's, and English common law prevails. The impartial judiciary is independent of the legislature and executive, and is drawn from several British Commonwealth jurisdictions as well as from Hong Kong itself. Cases are heard in English and/or Chinese.
Gateway to China
For more than a century and a half, Hong Kong has served as the gateway to Mainland China. There is nowhere better than Hong Kong to obtain the expertise, information and facilities needed to tap into the immense Mainland Chinese market.
The Closer Economic Partnership Arrangement (CEPA), which took effect at the beginning of 2004, provides Hong Kong with additional and exclusive Mainland market access benefits.
Furthermore, in August 2006, China and Hong Kong signed an arrangement that provides certainty and preferential tax treatment between the two tax jurisdictions, known as the "Arrangement for the Avoidance of Double Taxation on Income and Prevention of Fiscal Evasion".
With a population of 7 million, HK appears to be a small market. However, it enjoys the second highest buying power in Asia. Moreover, HK is the top touristic destination in Asia, with more than 60.8 million visitors in 2014. Nearly 77% of those visitors come from Mainland China to spend in HK.
- Population: 7.3 million
- Area: 1,108 km2
- GDP Growth: 2.4% (2015)
- GDP / Capita: 31,500 EUR (2014)
- Unemployment: 3.3% (2015)
- Profit tax: 16.5 %
- Individual Tax: 15%
- Inflation: 3.1% (2015)
Hong Kong hosts the largest number of French people in Asia, with 18,000 people registered (25,000 estimated).
Hong Kong has a prime location at the geographical and economic centre of Asia. Business executives in Hong Kong have fast and easy access to all the major markets in the Asia Pacific region.
This central position is one of the key reasons for the city's popularity as a location for regional operations.
The telecommunications system is fully digitised. The government began de-regulating the industry as early as 1995 when it issued fixed line telecommunications network service licenses to four providers. The mobile phone services market is very competitive with six operators and 11 networks.
There are currently more than 200 Internet Service Providers in Hong Kong, more than five of which provide broadband connections. Broadband Internet connection is available to over 98% of households and more than 95% of business buildings.
The only modern, fully developed deep water harbour between Singapore and Shanghai, Hong Kong is the focal point of all maritime activities in southern China. The container port in and around Kwai Chung is privately owned.
In 2014, Hong Kong handled a total of 22.2 million TEUs, making it the world's busiest and most efficient international container ports in the world.
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