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Hong Kong company incorporation gives unrivalled access to an estimated consumer market of 450 million people in southern China alone. Consequently, Hong Kong is a popular jurisdiction with international entrepreneurs looking to penetrate Chinese markets. The following information will help you determine whether Hong Kong company incorporation is the optimum strategy through which to achieve this. |
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Hong Kong company incorporation is supported by the recent edition of the World Banks Doing Business 2010 survey. Hong Kong maintained its 3rd position in the ranking behind Singapore and New Zealand. Aspects that Hong Kong ranked strongly for include dealing with construction permits, investor protection, taxes, trading across borders and enforcing contracts. |
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To support Hong Kong company incorporation, a wide range of financial services are available. In the 2008 Global Financial Centres Index (GFCI), Hong Kong maintained its third place behind London and New York. Consequently, a wide range of services are available to investors choosing Hong Kong company incorporation to access China. Services offered include asset management and corporate finance. |
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Following incorporation in Hong Kong, the company pays no tax on profits earned outside Hong Kong, including China. |
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Hong Kong enjoys excellent communications links with southern China. Air, rail, road and sea links are modern and efficient and offer unrivalled access to China's booming southern provinces, and open up an important market to investors following Hong Kong company incorporation. |
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To take advantage of the huge hinterland that is China, Hong Kong is actively promoting itself as a gateway to China. This encourages more foreign direct investment and inflows of investment. One such example is the Shenzhen-Hong Kong Innovation Circle, which is designed to encourage overseas enterprises to do scientific research in Hong Kong. In 2008, Hong Kong received significant levels of FDI, approximately US$63 billion, of which the primary investor was Mainland China covering 36.5% of investments (Hong Kong Census and Statistics Department). |
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Investors choosing Hong Kong company incorporation are able to take advantage of the Closer Economic Partnership Arrangement (CEPA). This free trade agreement grants Hong Kong manufacturers and service suppliers preferential access to the Chinese market. The agreement is now in its fourth phase, in which China agrees to abolish tariffs on all products of Hong Kong origin (to date there are more than 1,400 products). For more details on how the CEPA can benefit Hong Kong company incorporation, contact us. |
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According to the Hong Kong Trade Development Council, Hong Kong is the largest contributor of foreign investment to China. | |
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Hong Kong investors were responsible for 45.9% of all overseas investments into China as of the end of 2005. |
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Many investors choosing Hong Kong company incorporation list their companies on the Hong Kong Stock Exchange. In 2006, the Hong Kong Stock Exchange raised US$32 billion (or 15% of total global capital raised), ahead of the London Stock Exchange and the New York Stock Exchange (10.5%). |
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US$7.8 billion has been spent on Hong Kong’s infrastructure over the last decade, 75% of which have been undertaken by foreign contractors. This shows that there is great potential and opportunities for foreign investment in Hong Kong. |
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The Government of Hong Kong is setting up a bond program to reinforce Hong Kong’s reputation as a global financial powerhouse. Islamic Finance will be a focal point, with an aim to create a level playing field for Islamic and conventional banking products. |
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Contact Us |
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For more information on Hong Kong company incorporation, please email email@healyconsultants.com or telephone us in Hong Kong at
+852 8331 1911. |
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Back to Hong Kong Company Formation page. |
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| © 2003 Healy Consultants Pte Ltd | ASIA COMPANY SET UP SERVICES |