Hong Kong is one of the most attractive places for doing business in the world. Located in the very heart of Asia, Hong Kong is, in fact, well-recognised as one of the world’s premier financial centres.
It offers competitive advantages as a hub for international investors, is used as a gateway for business expansion into Mainland China and has been ranked second in the world in terms of ease of doing business by the World Bank. Foreign investments are welcomed here, and there are no restrictions against foreign businesses. Businesses have praised Hong Kong’s low and simple tax system. Corporate income tax follows a two-tier system, which the first HKD 2 million of taxable income is subject to 8.25% and the rest is subject to 16.5%. Personal income tax starts at 2% and is capped at 15%, with no turnover tax and no tax on capital gains or dividends.
Hong Kong’s government adopts a policy of minimum intervention in regulating businesses, and immigration policies are designed to attract talented professionals and investors from around the globe turning Hong Kong into an incredibly dynamic and attractive place for investments. While Hong Kong offers a relatively easy-to-navigate business environment, investors still need to be aware of local regulations and sector-specific requirements.
GDP growth (2019)***