Strategically located for business in Asia
Hong Kong is ideally located for growing companies that want to do business with Mainland China and Asia.

It enjoys peerless 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 difference

Easy and efficient regional travel is key to Hong Kong’s success as a regional center
– Over 100 airlines offer flights to about 190 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 1,100 daily flights between Hong Kong and the rest of the world

Summary of the legal framework for business
– According to Doing Business (world bank group), Hong Kong ranks second in the world in ease of doing Business, behind only Singapore and well above China, which is ranked at 91. It is also the second country in which it is easier for Border trade.

– According to Doing Business; the formalities for starting a business require three days. It is the country where there is greater ease of obtaining building permits, and although it is ranked 57 on ease of registering property, the time required is similar to the average of OECD countries.

– Stability in the rules of investment and ease of doing business especially compared to China, cause many companies to choose Hong Kong as a country to settle and then address the Chinese market.

Low and simple tax regime
Hong Kong has a simple, predictable and low tax system. The city only imposes three direct taxes, and filing taxes is straightforward. According to the 2016 Paying Taxes* study of 189 economies, Hong Kong has one of the most tax-friendly economies in the world. Why? The city only imposes three direct taxes and has generous allowances and deductions which reduce your taxable amount.

– Profits tax is capped at 16.5 percent

– Salaries tax is a maximum of 15 percent

– Property tax is 15 percent

More important are the taxes that Hong Kong does not impose:

– No sales tax or VAT

– No withholding tax

– No capital gains tax

– No tax on dividends

– No estate tax

The ease of submitting tax returns is another attractive part of Hong Kong’s business environment. Many people complete their tax returns themselves – a simple process – and can submit them online. Others rely on Hong Kong’s many accountancy firms, large and small, for cost-effective tax services and advice.

***Paying Taxes is a study commissioned by the World Bank and IFC which measures the ease of paying taxes across 189 economies worldwide. It covers both the cost of taxes and the administrative burden of tax compliance.

Free trade port
Hong Kong is known for its free port status and easy customs procedures. Duty is paid on very few products, for example, tobacco. One major recent change has been to make the import of wine and beer duty free. This has encouraged a thriving wine import, export and storage business serving retail and individual buyers.
Foreign Trade Regime
Processing of Imports: Hong Kong is one of the most open and liberalized economies. There are only tariffs in alcohol from above 30 degrees, hydrocarbons and methanol.
Government support for companies
Hong Kong offers generous support to help companies set up and expand.There are various programmes designed to help overseas and local SMEs set up in Hong Kong. These include:

– Government support for companies

– Incubator programmes

– Loan guarantees

– Funds for marketing

Incubator programmes
The Hong Kong Science & Technology Parks incubator scheme provides subsidized office space, consultancy services, investment matching and a small financial aid package to support R&D; the Design Incubation Programme (DIP) provides office space for design tenants and other professional support; the incubation programmes run by Hong Kong’s Cyberport help creative digital media SMEs and start-ups realise their ideas and build their business.
Financial aid for equipment and marketing
The SME Loan Guarantee Scheme (SGS) secures loans of up to HK$6 million for companies that need working equipment or business capital. The SME Export Marketing Fund (EMF) helps companies participate in overseas exhibitions and business missions and to place B2B advertising. It can fund up to 50 percent of approved expenditure, up to HK$50,000 per application. The SME Financing Guarantee Scheme can provide guarantee coverage of 50–80 percent on loans up to HK$12 million. The CreateSmart Initiative provides financial support to SMEs in the creative industries, funding them to build their brand through participation in overseas exhibitions and competitions.
Technology and Innovation funding
The Innovation and Technology Fund (ITF) supports companies to upgrade their technology and inject innovative ideas into their business.