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Doing Business in Hong Kong

Reasons to Invest in Hong Kong

This is the Asian Century and Asia, especially China, is the world’s economic growth engine, perhaps even its saviour. Hong Kong is the perfect base from which to access the rest of Asia, given its business environment and geographical position.

Hong Kong is only four hours away by plane from most of Asia’s key cities and five hours away from half the world’s population. It is an hour’s drive (or train ride) from the Pearl River Delta (PRD), China's biggest manufacturing area.

The PRD accounts for 10 percent of China’s GDP and about 30 percent of the country’s exports, and thousands of overseas companies trading in China have established corporate entities for investment into or sourcing from the PRD in Hong Kong, due to the ease of setting up and doing business in and via Hong Kong.

Hong Kong’s advantages are the reasons for its success over many years as an international business city, such as its political stability, pro-business governance, rule of law and independent legal system. Hong Kong has the world’s freest economy and enjoys unrestricted flow of information, capital, talent and goods. The Hong Kong dollar is fully convertible and separate from the Chinese renminbi (RMB). In addition, Hong Kong has the world’s third lowest “tax misery” rating, thanks to low tax rates and a simple tax system.

Furthermore, Hong Kong now has a significant (and growing) network of double taxation arrangements. These double taxation arrangements conform to the latest Organisation for Economic Co-operation and Development (OECD) international standard on exchange of information, thereby facilitating proper tax planning in a number of jurisdictions.

Hong Kong is also a logistics hub, for both sea and air freight. Hong Kong International Airport is the busiest international passenger airport in Asia-Pacific and the fourth busiest in the world; it also operates the busiest cargo facilities worldwide. Similarly, Hong Kong’s container port is one of the busiest in the world, while Hong Kong’s public transport and telecoms sectors are first rate.

Hong Kong people have an international outlook and commensurate business expertise. They are usually trilingual (English, Mandarin and Cantonese), highly trained, flexible and mobile. Hong Kong also has an open-door immigration policy to attract the best overseas professionals to come and work in the city. Spouses of expatriates have the right to work in Hong Kong.