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
Guy Man Yun Wah
Director, Corporate Secretarial
InCorp Global,
Hong Kong
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.
Rikvin’s content team includes in-house and freelance writers across the globe who contribute informative and trending articles to guide aspiring entrepreneurs in taking their business to the next level in Asia.