By Kooshila Takoordyal, 23.03.18
Hong Kong offers a unique business hub that has been successful in attracting a large amount of foreign investment. Hong Kong Funding Schemes are a big help to start up companies and are very popular and a large portion of startups are foreign owned. Hong Kong is an autonomous territory in South-eastern China with its own legal system, police force, customs and immigration policies. Its official name is Hong Kong Special Administrative Region of the People’s Republic of China. A multicultural and officially bilingual jurisdiction speaking both Chinese and English; in the business sector, English is the most commonly used language.
Hong Kong has a long-standing reputation as a reputable centre for incorporating international businesses for many reasons such as the low tax rate and profits made offshore are not charged the Hong Kong Profits Tax. It holds over 30 Double Taxation Agreements with European countries and an agreement with China that permits many businesses to operate in both Hong Kong and mainland China.
Entrepreneurs worldwide use Hong Kong as a base for global operations taking advantage of the modern legal and corporate framework, low taxation, and minimal market intervention by the government. An established international financial market, the Hong Kong Stock Exchange is the seventh largest in the world; market capitalisation was recorded at $4.3 trillion US dollars (USD) in December 2017. The Hong Kong dollar is pegged to the USD maintaining the currency’s value at a fixed exchange rate to the USD. This also means that its large amount of financial transactions and international trade is often done in USD.
Hong Kong is also the seventh largest trading jurisdiction for both imports and exports in the world. Home to the world’s largest transhipment centre it has one of the busiest shipping container port and international cargo airports in the world. Many export activities in the region are re-exports, meaning the products were manufactured outside of the region such as mainland China and then distributed out of Hong Kong.
Start-Ups and funding
Hong Kong has one of the greatest concentrations of corporate headquarters in the Asia-Pacific region. More than 2,500 start-ups companies are based there and approximately 43% of them are foreign owned operating in a range of industries and business sectors. There is also a variety of business grants available to fund for growth in competitive markets. for example, Hong Kong Science and Technology Park offers $110,000 (USD) to biotech and engineering start-ups and Cyberport contributes $42,000 (USD) to innovations developed in Hong Kong.
There is a great culture for SMEs that targets foreign investment, the Export Marketing Fund of the Trade and Industry Department offers funding and access to international trade fairs to growing businesses. There is additional support available to qualifying SMEs, who can be reimbursed up to 50% of costs for attending local trade fairs and exhibitions.
Hong Kong is a viable business centre for international investment, as previously stated, its robust and modern legal and corporate framework make Hong Kong an ideal base of global operations. If you would like to learn more about incorporating a Hong Kong businesses, contact the experts at Euro Company Formations on +353 (0) 16461627 or click here.