Hong Kong is an extremely attractive location for many overseas investors. According to the UNCTAD World Investment Report 2015, Hong Kong ranked second in the world for global FDI inflows, behind only Mainland China; FDI inflows amounted to USD163 billion in 2015.
Hong Kong ranked fifth in the World Bank's 2016 Doing Business rankings, retaining the same ranking as the year prior. The government enacted a number of reforms during 2015 which helped it to maintain its position as one of the easiest countries in the world in which to do business. This included making starting a business easier by eliminating the requirement for a company seal, making paying taxes easier and less costly for companies by simplifying compliance with the mandatory provident fund obligations and increasing the allowance for profit tax.
Key facts about starting a business in Hong Kong:
Hong Kong's attractiveness as a business destination can be attributed to a number of factors, including its strategic position, its simple tax regime and its strong legal system. Nevertheless, in order to make an informed decision, it is critical to understand the nuances of any local regime. The manner in which people conduct business in Hong Kong may differ from the home countries of investors. Furthermore, variations on these distinctions may exist depending on the industry in which a company operates.
Chinese and English are Hong Kong's official languages. However, English is the lingua franca of business. Hong Kong businesses are typically hierarchical and dress codes in the workplace are conservative. A handshake is the typical business greeting and business cards will usually be presented at the initial meeting. Gift giving is traditional as part of Chinese culture.
Those looking to establish a business in Hong Kong may look across Asia for alternative options. However, Hong Kong can be differentiated on the following factors:
Despite the myriad strengths of Hong Kong as an investment location, the city is facing economic challenges. In 2015, Hong Kong saw a drop in consumer spending amongst a decline in tourist arrivals. Exports of goods and services also fell, in part due to the challenging foreign trading environment. Furthermore, the city continues to be affected by the slowdown in China.
This guide has been developed to provide businesses with an overview of Hong Kong, its legal regime, start-up and market entry considerations, tax and customs requirements and a general summary of the factors that may affect the decision to do business in Hong Kong. However, the information contained in this document is generic in nature and you should not act or rely on it without obtaining specific professional advice.
Please note that the Country Guides may only be available in English.
|2||Inland Revenue Department|
|3||Customs and Excise Department|
|5||Intellectual Property Department|
|6||Office of the Privacy Commissioner for Personal Data|
|2||Doing Business Rankings|
|3||Work Permit - Used Practical Law which is a legal service Grant Thornton subscribes to|
|4||2016 Index of Economic Freedom|
|5||WE Global Competitiveness Report|
|6||Hong Kong accounts for almost a third of exports in and out of Mainland China|
Download Country Guide - Hong Kong (2.41MB, PDF)
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