Hong Kong is a regional business hub strategically located in Asia with close proximity to China and has been ranked as the ‘World’s Freest Economy’ for more than a decade, making it an excellent center for foreign companies to enter the Chinese market.
While Hong Kong’s political structure is a part of China, the legal system functions separately entirely and this provides entrepreneurs an added advantage to do business here without government restrictions.
Similar to Singapore, Hong Kong has a very attractive tax system that entrepreneurs get to enjoy. There are only 3 direct taxes imposed by the Hong Kong government and these too are applicable for further incentives:
- Profits tax of 8.25% for the first HK$2 million of profits of companies. Profits above this are taxed at 16.5%. For unincorporated business (i.e. partnerships and sole proprietorships), the corresponding two-tiered tax rates are 7.5% and 15%.
- Salaries tax of 15%.
- Property tax of 15%.
Along with many other benefits of expanding a business in Hong Kong, the government is also in it to encourage high growth in startups. To get this going, they have introduced a number of support schemes and grants to help these startups kickoff. Check out this list of SME grants available.
Must-Know: What you need to start a company in Hong Kong.
- An economic overview of Hong Kong’s market
- Key industrial and commercial sectors in Hong Kong
- Regulations that may impact your market entry
- Route to market
InCorp Global, Hong Kong
Guy Man Yun Wah
Director, Corporate Secretarial
Considering expanding your business in Asia?
We have a team of committed specialists across Singapore, Indonesia, Hong Kong, Vietnam, Philippines and India who can help you expand without any hassle.
Eric comes from banking background. He provides consultancy to local and foreign entities on the ideal market-entry strategies for setting up or expanding operations in Southeast Asia.
Eric also provides advisory to fund managers and family offices on structuring as well as applicable tax incentives. He has also set up many VCC structures for licensed fund managers.