Why Hong Kong?

A true business city

Hong Kong has firmly established its reputation as one of the world’s most business-friendly locations in Asia and beyond. In 2018 it was ranked as the world’s second most competitive economy by the International Institute for Management Development (IMD).

An unrivalled location

Situated on the doorstop of mainland China, Hong Kong is a well-recognised entry point for businesses looking to access the lucrative Chinese market. Likewise, Hong Kong’s cosmopolitan business environment makes it an attractive location for Chinese enterprises to seek international investment and contacts.

Meanwhile, its location in the heart of Asia means you can reach half of the world’s population in just five hours’ flying time.

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 with a standard rate of 15%
  • 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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