About Hong Kong
A former British Colony, Hong Kong is now a booming and vibrant city that is a colourful mix of both Chinese and Western cultures. China governs Hong Kong under principle of “One Country, Two Systems”, in which Hong Kong experiences a high degree of autonomy in most aspects of governance.
Benefits of setting up an office in Hong Kong
- Free economy
Despite the transfer of sovereignty from United Kingdom to People’s Republic of China in 1997, the taxation system in China does not apply to Hong Kong as an autonomous territory. Therefore Hong Kong continues to remain one of the world’s leading tax havens, earning its moniker as ‘the world’s freest economy’ for the 21st year running.
Corporations are only taxed on profits made from their business transactions within Hong Kong. Coupled with the high regard for privacy and confidentiality for companies incorporated within its jurisdiction, Hong Kong is ranked as the 3rd financial centre in the world – trailing behind giants New York and London.
With its strong rule of law, low levels of corruption, and low tax rates, it is easy to see how Hong Kong managed to achieve such accolades.
- Gateway to the rest of China
Hong Kong serves as an introductory channel for foreigners to conduct business in China, as in addition to the geographical proximity, China and Hong Kong also holds a bilateral trade agreement that makes it easy for business to be held between the two areas. For example, there are certain tariff reductions on good imported from Hong Kong into China.
Below are some resources on business expansion into China’s markets:
- Language
The business language of Hong Kong is English and Hong Kong citizens continue to use some form of English in their daily lives – thanks to their British historical roots. This makes it easier for English speakers to do business in Hong Kong, which is one of the key contribution for its success as a business hub.
Factors to consider when setting up an office in Hong Kong
- Transport
Hong Kong has an extensive rail network, which is seen to be the backbone of the entire Hong Kong transport system. In addition to that, it also has a mix of bus systems and trams, which can bring you to harder to reach places.
- Location
There are several locations in Hong Kong which are regarded as the business districts of Hong Kong. Here are some:
Central District (Central, Admiralty)
Central is the central business district (CBD) in Hong Kong. Home to the headquarters of many multi-national corporations as well as consulates, Central is where deals are made and profits soar.
Kowloon District (Tsim Sha Tsui, Mong Kok)
While Central has traditionally been the business centre of Hong Kong, investors are moving their sights to Kowloon, which has a lot of room for growth and development. It is also very nearby the current business district.
Wan Chai District (Wan Chai)
Wan Chai is one of the busiest areas in Hong Kong, being home to large number of small and medium companies. This makes it the perfect place for foreigners to rent out small serviced offices. Recently, the Hong Kong government has also initiated a programme to spruce up the area, as it is one of the oldest commercial areas in Hong Kong as well.
- Cost
Office rental prices are slightly decreasing, though whether this makes a significant difference to prices in the long run remains to be seen. For example, top tier office spaces in popular areas such as Central can cost as much as 100 HKD psfpm (per square foot per month).
Contact Our Hong Kong Office
Speak with our office specialist at +86 4008429145 or email us at sales@asiaservicedoffices.com to receive a free consultation and quote for your office needs in Hong Kong.
