Hong Kong – an Exceptional Location
After more than 150 years of British colonial rule, sovereignty was returned to China on July 1, 1997. According to the Sino British Joint Declaration of 1984 (between the United Kingdom and the PRC) Hong Kong became a Special Administrative Region - SAR - with a high degree of autonomy, thereby guaranteeing the continuation of the existing capitalist economy and the social and legal systems for another 50 years. Hong Kong will remain independent in all sectors of business, fiscal and social policy with the exception of foreign and defense polices.
Why do international companies favor of Hong Kong?
Hong Kong is one of the most important trade, financial and service centers in Southeast Asia and a hub for trade with China. There are numerous good reasons for setting up a company in the small (1,097 km²) densely populated territory (app. 7 million residents) and have a presence. According to a study by the "Census and Statistics Departments" of the Special Administrative Region and conducted in 2012, there are 1,367 international companies having their regional headquarters and 2,516 having their regional offices in Hong Kong. In addition, there are 3,367 companies with a local presence and supporting the fact that Hong Kong is Asia ´s economic center. As leading economists have predicted that the 21st century will focus on Asia, Hong Kong will remain increasingly important for conducting trade in and out of that region and beyond.
Hong Kong's advantages compared to other areas in Asia are evident:
An International Business Center
- Hong Kong is Asia's financial center
- Profound experience in international trade
- Reliable and stable legal system
Hong Kong companies have contributed to the growth of the boom regions in Asia with capital, logistic expertise, new quality standards and management experience. The financial sector in Hong Kong - three thirds of the worldwide 100 leading banks are present - supports multinational corporations as well as medium-sized enterprises in their activities in China and all over the Asia Pacific region.
- China expertise coupled with a strong business network
- Hong Kong is China's biggest foreign investor
- Experienced managers are able to manage risks
- Preferred gateway to the markets in China
Efficiency in Product Sourcing, Distribution and Sales
- Hong Kong is Asia's leading exhibition venue
- Easy access to the production facilities in the Pearl River Delta
- Assistance for a successful market entry into China
Every year, more than 60 international events draw hundreds of thousands of exhibitors and purchase agents from all over the world to the various exhibitions and fairs in Hong Kong.
It is the preferred platform for exhibitors from mainland China – another advantage for international companies who want to connect with Chinese trade partners. In view of its vicinity to the Pearl River Delta, one of the fastest growing areas in China, it is the ideal base for any international company searching new products or markets. A growing middle-class, modern enterprises and a very business-friendly climate ensure that Hong Kong is rightfully considered to be the gateway to China.
Free Flow of Capital and Goods
- Free trade, free markets, free media
- No restrictions for investments by foreign companies
- No currency restrictions
The free flow of capital, goods and information are the reasons for Hong Kong's business success. Goods can be imported and exported free of duties and taxes, there is reliable in-formation about the Chinese market, and the Hong Kong dollar is freely convertible. Almost one quarter of the entire Chinese foreign trade is conducted via Hong Kong.
International Business Environment
- Strong and established institutions
- Pro-business environment
- Cosmopolitan spirit
A reliable and transparent legal system, first-class business institutions and equal opportunities make Hong Kong an ideal location for companies of any size and nationality. English is widely spoken and international business practices prevail.
Last, but not least there are additional reason in Hong Kong´s favor:
- Hong Kong has been elected as the "most liberal economy worldwide" for 17 years in a row. There are no trade barriers, investment restrictions or currency controls.
- Hong Kong is a free port, i.e. most products can be imported and exported free of any duty or tax (except alcohol, tobacco and fuel).
- Hong Kong's government is very business friendly. Foreigners can set up, own and manage their companies. There are no restrictions on capital and profit transfers.
- The tax system is simple and tax rates are low compared to other countries. Only profits generated in Hong Kong are subject to a low rate of 16.5%. Profits generated outside the SAR are tax free.