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Five Important Reasons to Start a Business in Hong Kong

15 October, 2018

Are looking for a place to start your new business that has a simple tax regime, convenient location and world-class infrastructure? You should consider Hong Kong to be on your radar. Being the 5th fastest growing ecosystem globally and ranking 25th in the world, Hong Kong has an estimated USD 3.2 Billion as the value of the startup ecosystem.

Hong Kong serves as an attractive location to get started with businesses in this stable, business-friendly cosmopolitan. The simple tax system, developed communications, convenient location, and free circulation of goods permits companies of all industries to succeed and flourish in the Hong Kong economy.

If you're still unsure about whether to make a move, here are five compelling reasons why you should be doing business in Hong Kong.

Reason-1 World's Top Economy with Maximum Freedom

The first reason to be in Hong Kong for your business is the economic freedom the country offers. According to the index report of Economic Freedom created by The Wall Street Journal and Heritage Foundation, Hong Kong stands 1st globally in economic freedom.

Hong Kong is recognized as one of the world's most liberal economic systems due to its free trade policy, offshore investments, no trade barriers and no limit for foreign onshore business. Also, Hong Kong doesn't impose any tariff quotas or fees for general import and export trade, so the sky is the limit with trade and earnings from the business.

That officially makes the city the most liberalized economy and the ideal place to build and grow an enterprise, with a favorable climate for trade, investment and the movement of goods.

Reason-2 Simple Tax System

Hong Kong charges some of the lowest tax rates in the world, which compliments their simple tax system. This is the main reason why foreigners seek to start a business in Hong Kong. The profit tax is the same for foreigners and local companies that are capped at the lowest rates of 16.5% approximately.

There is no capital gains tax in Hong Kong, withholding tax on dividends and interest or collection of social security benefits. In fact, the salaries tax rate is at a maximum rate of 15% that will be imposing only on all salary income of individuals which had derived in or from Hong Kong. The salaries tax is collected on a yearly basis and can be paid in two installments.

Another compelling reason to start your business in Hong Kong is the zero corporate tax on business activities outside Hong Kong. You have to pay taxes only on the business activities carried out inside Hong Kong.

Reason-3 World-Class Infrastructure Facility

As a matter of fact, the business infrastructure is the primary consideration of entrepreneurs while starting a new business. The world-class infrastructure facilities in Hong Kong are what makes the city so well-known worldwide to entrepreneurs.

Hong Kong provides an excellent business infrastructure regarding air and sea transportation facilities, traveling, freight forwarding services, telecom, and logistics. With the world's fifth-busiest international passenger airport, with more than 85 airlines running out of Hong Kong International Airport, the city is a global hub.

In addition to this, the public transportation is also cheaper with a large number of taxis available to commute, and the railways are also reliable, fast, and affordable. The advanced telecommunication infrastructure of Hong Kong allows cost-effective prices for frequent travelers due to the decline in communication costs.

Reason-4 Easy Business Set-up for Entrepreneurs and Foreign Business Owners

Located in the heart of Asia, Hong Kong serves as an ideal place for operating a startup in order to reach the exciting business markets. Unlike many other countries who put a lot of restrictions on foreign business owners to open their businesses, China welcomes foreign entrepreneurs and business owners to develop their businesses in Hong Kong.

Reason-5 A Fair and Transparent Legal System

Their fair and transparent legal system is one of the most important reasons for starting your business in Hong Kong. While most of the countries provide a fair legal system to foreign business owners, Hong Kong's legal system puts the cherry on top to all of the other qualities the city has for foreign business owners.

The legal system in Hong Kong leans to favor the business environment by providing good business surroundings at all times. Fewer legal complications and support from the government are paving the way for companies around the globe to have their presence in Hong Kong.

The Hong Kong government is also attracting foreigners and residents to start their business by offering incubators programs, loan guarantees, and marketing funds for startups.


No doubt, Hong Kong is becoming a heaven for startups who are looking towards business expansion or for those who are willing to start their new business in Asia. The facilities of Hong Kong are ideal for anyone to get started from any part of the world.

Are you ready to start your business in Hong Kong? Feel free to contact Startupr for the incorporation and registration process. We would be happy to be your certified agent and guide you in the best way to start your business in Hong Kong.

Tags: Asia | Economy | Business

About the Author


Startupr puts you first. This is why our main focus is Startups with global ambitions. We give you the freedom to build your business while we take care of the tedious, administrative tasks, leaving you to concentrate on your dream for your company. As part of our brilliant service, our back end software will automatically send you reminders of important annual filings, and upload your important document to your online account. startupr.hk


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