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 unrivalled 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 2019 Index of Economic Freedom, Hong Kong is the world’s freest economy. Hong Kong has also 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% (8.25% for the first 2M HKD)
- 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. Hong Kong'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’.
The Guangdong-Hong Kong-Macao Greater Bay Area’s goal is to give full play to the advantages of Hong Kong and Macao and raise their positions and functions in national economic development and China’s opening up.
The idea is to capitalise on the region’s impressive infrastructure and expertise in finance, manufacturing and technology by dropping trade barriers, promoting cross-border business and eventually creating a single market.
With a population of 7.4 million, Hong Kong appears to be a small market. However, it enjoys the second-highest buying power in Asia. Moreover, Hong Kong is the top tourist destination in Asia, with more than 58.5 million visitors in 2017. More than 76% of those visitors come from mainland China to spend in Hong Kong.
- Population: 7.4 million
- Area: 1,108 km2
- GDP Growth: 3% (2018)
- GDP / Capita: 46,193 USD (2017)
- Unemployment: 2,8% (2018 – the lowest in 20 years)
- Profit tax: 16.5 %
- Individual Tax: 15%
- Inflation: 2.4% (2018)
Hong Kong hosts the largest number of French citizens in Asia, with 18,000 people registered in 2018 (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.
About 130 pairs of high speed trains run daily along Hong Kong high speed rails between West Kowloon Station and Mainland China (44 cities) since September 2018.
The 55-kilometre Hong Kong-Zhuhai-Macau Bridge was completed on 6 February 2018 and was open to the public on 24 October after its inauguration day by Xi Jinping.
Furthermore, to meet future air traffic growth and maintain Hong Kong's competitiveness as an international aviation hub, the Airport Authority (AA) will expand Hong Kong International Airport (HKIA) into a three-runway system (3RS).
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