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.
Key takeaways:
- 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
Speakers
Dominic Chan
Country Head
InCorp Global, Hong Kong
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Guy Man Yun Wah
Director, Corporate Secretarial
InCorp Global,
Hong Kong
