Hong Kong has certain advantages in business in which many other countries or regions do not currently possess. HK has this unique advantage based on the environment: One country, two system. Not only due to the one country advantage of being a part of China, it receives the benefits from the national development and relevant preferential policies. The city takes the two system advantage with having a relatively high degree of autonomy.Hong Kong continues the free flow of capital, free trade and protection of private ownership through the capitalist system. HK’s location is at the heart of Asia and has always been the business connector between the Mainland China and the rest of the world.
When new entrepreneurs need business related support for their startups, they can contact InvestHK (i.e. Invest Hong Kong). InvestHK is a local official organization with a mission to help all HK startup owners and provide access to resources (from Mainland China and/or overseas). Let’s go through the five advantages below.
Advantage 1: One of the top free economy among the world’s countries
Hong Kong has been rated the world’s most free economy by the Heritage Foundation in 2017. Before the year 2017, it has been rated for22 consecutive years with the same rating, making it 23 times in a roll. The very first year was in 1995.
Advantage 2:One of the best economies
As one of the first-class business cities in the world, HK has proved its enduring appeal and has gained the title of the world’s most competitive economy (from out of 61 economies/countries) in the World Competitiveness Yearbook 2016. The Yearbook was released by the International Institute for Management Development.
Advantage 3. HK as a major global FDI recipient
For many years, Hong Kong carries onbeing a preferred destination for foreign direct investment (FDI).
According to a report (i.e. World Investment Report 2016) from UNCTAD,HK ranks number two in terms of foreign direct investment inflow with US$ 175 billion. The outflow was US$ 55 billion, being number nine.
If you’re looking for investing funding for your company/startup, you may consider
Advantage 4. A place with very high efficiency for business
According to the World Bank’s Doing Business 2017 Report, HK was the fourth easiest place to do business in the world.
Advantage 5. Business-friendly tax regime with relatively low tax rate
HK is a free port with low and stable tax. i.e. Salaries tax rate capped at 15%, and profits tax has been reduced to 8.25% (for certain specific years, with some conditions) and stayed at 16.5% for other years.
HK charges no import tariff, no value-added, sales tax, no capital gains tax, and no withholding tax on dividends and interest.
Hong Kong ranks number three in Paying Taxes 2017 report by PwC and World Bank Group.