Why Hong Kong?

A true business city

Hong Kong has consistently upheld its status as a highly business-friendly city, renowned not only in Asia but worldwide. It stands as a testament to its prowess in attracting and fostering businesses, making it a prime location for global enterprises.

An unrivalled location

Hong Kong, where the vibrant fusion of Eastern and Western cultures harmoniously coexists, retains its pivotal role as a hub where East meets West. This unique blend infuses dynamism into its business landscape, making it a compelling destination for enterprises seeking to bridge these distinct worlds seamlessly.

Situated at the gateway of mainland China, Hong Kong is an instrumental entry point for businesses venturing into the thriving Chinese market while also serving as an attractive platform for Chinese enterprises aspiring to establish a global footprint. This distinct positioning further amplifies Hong Kong's significance and relevance on the global stage. Moreover, its strategic location at the heart of Asia ensures swift connectivity to nearly half of the world's population within just five hours' flying time, enhancing its appeal as a global business hub.

A low and simple tax regime

Hong Kong boasts one of the most tax-friendly systems anywhere in the world.

Tax breakdown:

  • Profits tax for the first HK$2 million of profits of corporations is 8.25%. Profits above that amount will be subject to the tax rate of 16%. For unincorporated business (i.e. partnerships and sole proprietorships), the two-tiered tax rates are correspondingly set at 7.5% and 15%.
     
  • Salaries tax Hong Kong’s salary tax bracket is charged at 2%, 6% , 10% , 14% and 17%. The progressive tax rates are charged upon an individual’s net chargeable income. It could follow the five tax percentage structures, or be charged a standard rate of 15% on an individual’s net income or whichever is considered lower. Net income is the income that is left after deductions.
     
  • Property tax of 15%.

Rule of law

Under One Country, Two Systems, Hong Kong maintains its own legal systems separate to those of mainland China. Among the legal reassurances for companies operating in the territory are robust policies and protections for intellectual property allowing for a free and fair business environment.

Read our HongKongEcho magazine

Want to find out more about Hong Kong's business scene? Our HongKongEcho magazine tackles the big topics facing the city's business community featuring in-depth interviews with major CEOs, commentators, experts, and more.

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