Hong Kong

Located strategically at the heart of Asia, the Hong Kong Special Administrative Region (SAR) of the People's Republic of China is one of the world’s most significant financial centres. With its solid fundamentals, attractive tax policies, business-friendly environment, and strong international connectivity, Hong Kong ranks 1st as the offshore wealth management centre of Asia.

Please note that due to Covid-19,
some circumstances in this country may be inaccurate.

 

Welcome to Hong Kong

Playing a pivotal role in bridging the East and the West, Hong Kong is an ideal gateway to Asia’s fast-growing markets, providing businesses with access to diverse opportunities across many industries.

The Hongkong and Shanghai Banking Corporation Limited opened its doors for business in Hong Kong in March 1865. By the end of the 19th Century, the bank was one of the most prominent financial institutions in Asia.

Our rich heritage and over 150 years of experience in the Hong Kong market means we have a deep understanding of how to do business here.

Please get in touch to find out how we can help your business grow.

We’d be delighted to hear from you!

Luanne Lim
Luanne Lim Chief Executive Officer, HSBC Hong Kong

Contact:

Head office address: HSBC Main Building, 1 Queen's Road Central, Central, Hong Kong

Essentials

Population
7.5 million1
Size
1,104 sq km
Main languages
Chinese and English
Capital city
None, as Hong Kong is a Special Administrative Region of China
Other major cities
Not applicable
Currency
Hong Kong Dollar (HKD)
Dialling code
+852
GDP

USD41,644.32 per capita2

Top exports

Electrical machinery, machinery including computers, gems and precious metals, optical, technical and medical apparatus, clocks and watches including parts, perfumes and cosmetics, and toys and games3

Top imports

Electrical machinery, machinery including computers, gems and precious metals, optical, technical and medical apparatus, mineral fuels including oil, perfumes and cosmetics, and clocks and watches including parts3

Unemployment rate
5.4%4
Profits tax

16.5% (15% for unincorporated businesses and a preferential rate of 8.25% for SMEs)5

Typical office hours
9.00am – 6.00pm, Monday to Friday
Time zone
UTC +8
Emergency numbers
999 (police, fire and ambulance)

Hong Kong: Asia’s global city

Ranked

# 3

for ease of doing business (in a survey of 190 economies measured by The World Bank)

  • Access to Asia6

    Hong Kong provides easy access to Asia, the world’s largest continent which is home to half of the world’s population.

  • A free economy

    Hong Kong is widely regarded as one of the world’s freest economies, underpinned by its business-friendly environment, sound regulatory regimes, effective protection of property rights and commitment to the rule of law. 

  • Mainland China’s global connector7

    From here you can plug into the fast-growing markets in mainland China. The territory is the most important source of investment for the Chinese mainland and vice versa. It’s also at the mouth of the Pearl River Delta, one of mainland China’s leading economic regions and a major manufacturing centre.

  • Wealthy in its own right8

    Not only is this Asian tiger one of the world’s most densely populated cities, it’s also home to a high concentration of wealthy individuals. The nearby cities of Shenzhen, Guangzhou and Dongguan, are now among the richest in mainland China and are sizeable and strong markets for goods and services.

  • Global trading and finance hub7

    Strategically located for business in the Asia-Pacific, Hong Kong is the second largest trading partner with the Chinese mainland after the US. It is also one of the most important financial services centres in the Asia-Pacific.

1 World Bank Group, 2019
2 Trading Economics, 2021
3 World’s Top Exports, 2021
4 Trading Economics, 2022
5 PwC, 2022
6 Government of the Hong Kong SAR, 2018
7 Hong Kong Trade Development Council, 2021
8 Forbes, 2017

Market Profile

Hong Kong is one of the world’s most competitive economies. It’s a magnet for global business, with its own currency, legal framework and taxation system.

The autonomous territory is a long-standing bridge to mainland China and a rare blend of East and West, with large volumes of trade and investment flowing both ways.

Hong Kong is modern and international, with the broad protections of the rule of law. According to the latest World Bank Doing Business Survey, Hong Kong is a relatively easy and cost-effective place to do business1.

With free trade at its core, Hong Kong is situated in a prime location at the centre of Asia and its economy is one of the most open in the world.

Hong Kong has a three-fold appeal: it’s economically energetic, it has strong growth prospects, and it’s a major gateway to mainland China.

A good regional spot for expansion across the Asia-Pacific region, this multi-faceted city is also cosmopolitan, business-friendly and largely stable.

Read on to discover more about the dos and don’ts of doing business in Hong Kong. Also find out how trading in or with Hong Kong could help boost the future growth of your business.

1 UK Government, 2022

5 reasons to do business in Hong Kong1

  1. Made for business
    Hong Kong is renowned as an easy place to do business and is currently third in the World Bank's Ease of Doing Business rankings.
  2. Low-and-simple tax regime
    The territory has a simple, predictable and low tax system. It imposes only three direct taxes and has significant allowances and deductions, which can reduce your taxes further, with no sales, capital gains or withholding taxes.
  3. Home of the small and medium enterprise
    Approximately 340,000 small and medium enterprises are currently based in Hong Kong, making up over 98% of all businesses and employing nearly half the city’s private sector workforce.
  4. Start-up ecosystem buzzing
    Hong Kong is increasingly positioning itself as the Asia-Pacific’s start-up hub. Between 2018 and 2020, the number of local start ups rose 28% to 3,360, with the businesses employing 10,688 people.
  5. Support for new companies
    Foreign and local companies compete on equal terms, as there’s no protection of local businesses or trade barriers in Hong Kong. Overseas talent possessing specific skills, knowledge and experience can work here.


5 key challenges

  1. 1

    New controllers register1

    Effective from 1 March 2018, all Hong Kong incorporated companies are now required to keep a significant controllers register (SCR) to maintain up-to-date beneficial ownership information.

  2. 2

    Limited space

    Limited urban space can be a significant challenge for businesses.

  3. 3

    Competition risks2

    A limited ability to innovate is one of the main challenges faced by the business community in Hong Kong.

  4. 4

    Understanding procedures3

    Navigating tax, legal and regulatory processes in Hong Kong can be difficult for those without a local understanding of these practices.

  5. 5

    A costly city4

    Hong Kong tops the list of the most expensive cities for expatriates, according to Mercer's 2020 Cost of Living Survey. These costs are also reflected in commercial rents, with co-working spaces and virtual offices becoming increasingly popular as a result.

1 Mondaq, 2018
2 UK Government, 2022
3 Government of the Hong Kong SAR, 2018
4 Mercer, 2020