Hong Kong: Global Hub of the Future

Offshore investingAs a global hub, Hong Kong has a pretty impressive resume. Global business surveys have given the following recognitions to Hong Kong:

1.  For the 18th year in a row, Hong Kong was named the freest economy in the world

2.  Hong Kong is the third largest receiver of foreign direct investment

3. Hong Kong is rated as the 14th least corrupt country in the world, out of 173 countries

4. Hong Kong is the 2nd easiest country to do business in, based on multitude of business regulations

5. The HDR ranks Hong Kong as the 13th most developed country in the world

6. The World Airport Awards ranked Hong Kong International Airport as “the best airport in the world”

7. Forbes ranked Hong Kong office property as the most expensive in the world

As impressive as the list is, it still represents only a fraction of what Hong Kong has accomplished over the past 30 years.

How does Hong Kong rank so highly?

Hong Kong has worked to build a reputation as a melting pot for Eastern and Western culture and ideas. It has embraced this multi-culturalism for over 150 years, with a legal system, government and economic system heavily based on the British system. Hong Kong is ideally located to access the strong North Asia markets such as China, yet its model of free market capitalism and westernized business practices have helped it appeal to western entrepreneurs, hence contributing to its foreign direct investment (FDI). The combination of a western business climate and unbridled access to China and other emerging Eastern powers has been Hong Kong’s ticket to success.

Hong Kong company registration by foreign entrepreneurs has been the key component of its journey towards becoming a global hub. This is one of the primary forms FDI comes in for developing business hubs, due to its plentiful perks. Some attractive aspects of a Hong Kong company include:

  •  Foreign investors can own 100% of their Hong Kong company
  •  Investors maintain 100% control over their investments
  •  Profits can be repatriated in their entirety
  •  Profits sourced outside of Hong Kong are legally tax exempt

“One country, two systems”

Since the 1980’s Hong Kong has been a part of the People’s Republic of China. However, its history of independence and highly developed autonomous policies has allowed it to flourish with its previously developed political, legal and economic systems.

A Hong Kong Company for any level of business

The high rankings Hong Kong receives in a variety of business aspects shows the advantage a Hong Kong company has. Despite the global downturn, Hong Kong managed to grow FDI and increase international business turnover over the past 4 years. Its growth has continued to benefit all sizes of businesses.

Below are some of the advantages Hong Kong can provide to each specific type of company.

Businesses – At 16.5%, the corporate tax rate in Hong Kong is one of the most favorable in the world. For a Hong Kong offshore company or branch company, all of the profits can be repatriated as well. These types of companies can be registered as their own legal entities, allowing large companies a good way to manage regional business actions. Add these factors to Hong Kong’s unbeatable international reputation, stability as a financial centre and the strategic advantage of having access to Mainland China, and it is an obvious choice for businesses looking to branch in to Asia.

Entrepreneurs – What does Hong Kong offer that puts it ahead of other countries for entrepreneurs? One word: ease. Whereas starting a company in other Asian countries can be difficult due to unfamiliar legal infrastructure and foreign economic systems, registering a company in Hong Kong is simple for most entrepreneurs as it is so similar to setup procedures in Western countries. Hong Kong’s position as “the gateway to China” allows an entrepreneur to significantly lower costs due to China’s plentiful suppliers for manufacturing, labour and natural resources. Hong Kong has several secure and successful banks and a sophisticated financial system that makes obtaining funding for projects easy.

Individuals & Investors – Hong Kong Company Formation is not restricted to entrepreneurs looking to make profit. This same strategy can provide access to a secure and safe financial system to accomplish other business objectives. Through a Hong Kong bank account, an individual could mortgage foreign property outside of Hong Kong. Alternatively, consultants can use the financial system to hold revenue from clients with only a single cost and tax entity. No matter the objective, involving the Hong Kong financial system adds a degree of security and stability that can be hard to find elsewhere.

Now is the Time to Invest in Asia

Looking at a historical data, tax rates on funds being repatriated tend to increase during times of economic decline. Thus, in the presence of a shaky American and European recovery, investment has only grown faster in Asia, as high tax rates make repatriation less favorable. Capital is increasingly flowing to hot spots in Asia like Hong Kong and Singapore and this trend is expected to increase.

With uncertain times ahead for the Western economies and the increasing importance of China to so many companies, Asian hubs that can provide stability and security are the best choice for any individual or enterprise longing to be prudently invested. Hong Kong companies and bank accounts are both easy to set up and becoming more advantageous for entrepreneurs and investors with ambitious business strategies.


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