Hong Kong is a business-friendly, dynamic city with strong growth prospects. The city welcomes expats and various renowned organizations, it is one of the top markets in the world for innovation. But the main attraction for entrepreneurs is its strategic location. Hong Kong is ideally located for developing companies that want to do business beyond mainland China and Asia. In case you are planning to start your business in Hong Kong and are not sure about what the city will offer you.
Why Hong Kong?
Here are 10 reasons that make Hong Kong a top choice for entrepreneurs.
Company Incorporation Made Easy
Starting an offshore business from scratch can be a complex and long process in many other countries. But, in Hong Kong, setting up an offshore company can be done within a few days — not weeks or months. As well as time saved, the prerequisites for the application and documentation are simple, without any limitations for overseas directors or investors. The simplicity of the process can be indicated by the fact that not it isn't so much as a necessity to be present to open a business in Hong Kong.
This not only saves time and effort but also makes incorporation in Hong Kong a cost-effective option. There are no minimum share capital requirements when incorporated in Hong Kong, and therefore, many companies are being opened with $1 share capital.
Support Foreign Entrepreneurs
Foreigners in Hong Kong are entitled to be the sole owners of a business, and they can enjoy top positions and be the business entity's shareholders. Therefore, if you are not an HK national, you can still start your business in Hong Kong, which will fetch you sure growth. The government has laid a separate department, InvestHK, that boosts the foreigners with free investment promotion and aftercare assistance to sustain their booming presence in Hong Kong. Not only this, HK has its economic and trade offices in Singapore, Sydney, Tokyo, Brussels, Geneva, New York, London, San Francisco, Toronto, Washington, Berlin, and in different cities of Mainland China.
World-Class Business Infrastructure
In Hong Kong, political stability, the rule of law, and open market help foreigners enjoy business growth. HK provides equal opportunities to local and foreign businesses as an international business city. Included in the world trade organization and other international forums, HK makes a company recognized worldwide.
Strategic Location To Access Asian Markets
Hong Kong is ideal for expanding businesses to reach exciting business markets. The area has Commercial and geographical easy access to mainland China, making Hong Kong the best choice of startups with plans to penetrate the business market of China, the largest populated country in the world.
Excellent Banking Facilities With Low Corruption Rate
Being the global leader in banking, Hong Kong presents multi-currency bank accounts to the companies starting up there. Among 180 countries/territories in the Corruption Perceptions Index 2021, Hong Kong is ranked the 12th least corrupt place.
Hong Kong has a business-friendly tax system. There are no VAT, sales, withholding, capital gains, estate, or dividend-based taxes. The prevailing taxes are capped at the lowest rates, such as 16.5% profit tax, 15% of salaries tax, and 15% of property tax. All this is mentioned on the official website of the HK Government. Various other countries might not have taxes as Hong Kong has, but the business-friendly environment is also not guaranteed over there as it is in HK. Hong Kong is stated at the top when it comes to listing with its policies and institutions supporting financial Freedom as per the Economic Freedom of the World report.
Ideal Business Infrastructure
Business infrastructure is the primary consideration of a business owner. Hong Kong offers an excellent business infrastructure in terms of transportation, traveling, telecom, and logistics. HK airport, one of the world's biggest airports, is connected to more than 180 cities by air. Public transportation modes are also cheaper, with many taxis available to commute. The railways are quick, inexpensive, and reliable. The Deep-water port of Hong Kong is also an attraction for business startups. Cell phone and internet services are cheap, with 3G and 4G network coverage in HK. 98% of households and 95% of business buildings avail and enjoy the broadband facility that is available in Hong Kong.
Lack of Currency Restrictions
Working in multiple currencies is all-but-inevitable for ambitious businesses in our connected world. Hong Kong has no foreign exchange controls, this makes it feasible to make and accept payments worldwide without any government restriction. Also, Hong Kong makes it straightforward to use foreign currencies in various official contexts. For example, one can pay company share capital in any primary currency, not just the Hong Kong Dollar.
Hire Best Talents
The well-educated and adaptable talent of HK ranks at the top of the world due to having outstanding management experience in global business. Strong work ethics is one of the core components of Hong Kong's local talents. Also, the immigration policies welcome recruiting professionals from overseas, and employees from overseas are permitted to bring their families and live in Hong Kong. Therefore, immigration rules are very friendly and flexible that way.
Standard of Living & Health Facilities
The dynamic lifestyle of Hong Kong turns it into a city that never sleeps. Rising high flats and villas with all luxuries in the rural areas are available for foreigners to live or buy, and foreigners can easily purchase property in HK. In total, there are 164 public hospitals and 12 private hospitals. Expats medical insurance plans are also provided. Unlike local residents, expats can enjoy lifetime insurance plan renewal, which means the plan does not depend on the individual's health condition; they are covered anyway. Health staff at public and private health centers is locally and internationally trained.
World-Class Business Reputation
By now you might have an idea about the reputation of businesses in Hong Kong. One of the world’s few global cities, Hong Kong stands alongside cities like New York, London, and Paris. Hong Kong has a centuries-old reputation as a business hub. International businesses trust companies incorporated in Hong Kong as their partners and clients. While their prospects are improving, the same cannot be said for companies based in other parts of Asia. This is the reason many businesses from elsewhere in Asia choose to incorporate a subsidiary in Hong Kong to run their international business.