1. STRATEGIC LOCATION

Hong Kong is strategically located at the heart of the Asian continent.  A short-distanced flight within five hours will connect you to most cities in the Asia-Pacific region.  Concerning the Mainland Chinese market you will find that Hong Kong is perfectly situated on the southeast coast of Mainland China, flanking the mouth of the Pearl River Delta.  This facilitates travel to and from Hong Kong to other major Chinese cities such as Beijing and Shanghai within a single day.  Meanwhile, Hong Kong has taken ongoing measures to continuously upgrade its public infrastructure to meet the growing demands of businesses.  It is said to have one of the best airports and busiest ports in the world.  Transportation services are efficient and cheap connecting all major centers.  Therefore, forming company incorporation in Hong Kong would definitely enjoy this geographical advantage in Asia.

  • Ranking Category Hong Kong’s Rank Source
    Best Quality of Infrastructure 1 Global Competitiveness Report 2015-2016
    Quality of Air Transportation 3 Global Competitiveness Report 2015-2016
    Quality for Port Infrastructure 5 Global Competitiveness Report 2015-2016
2. EASE OF DOING BUSINESS
  • Hong Kong is renowned for being a convenient place to set up a business.  You can set up your company in about a week’s time in Hong Kong without any hassles. Intellectual Property protection is taken seriously with strict regulations in place.
  • Ranking Category Hong Kong’s Rank Source
    World’s easiest place to do business 5 World Bank Report: “Doing business 2016″
    World’s Best Business Environment 5 Economist Intelligence Unit, Country Forecast, October 2015
    Best Nation for foreign trade and investment 2 The Globalization Index 2007
    Least Bureaucratic place for doing business in Asia 2 Political & Economic Risk Consultancy, 2007

Hong Kong is the most important financial center and a key regional trading center in the world.  It is also the world’s busiest port.  It is a top location for investments and headquarters of fortune 500 companies in Asia-pacific region.
Hong Kong consistently ranks as one of the top most competitive and profitable places for business investors.

  • Hong Kong’s Rank
    2016 World Competitiveness Yearbook (WCY) of IMD 1
    Doing Business 2011 by IFC
    Ease of doing business 2
    Getting credit easy 2
    2016 Index of Economic Freedom 1
    Best Countries for Business by Forbes 2015 11
3. ONE OF THE LOWEST AND SIMPLEST TAX SYSTEMS IN THE WORLD
  • Tax system in Hong Kong is simple and extremely low according to OECD (Organization for Economic Cooperation and Development) standards.

  • No capital gain tax
    No interest tax
    No withholding tax
    No VAT or any sales tax
  • Hong Kong only has 3 direct taxes:

    1. Profits Tax - 16.5% on business net profit;
    2. Salaries Tax - 2% - 17% depends on the level of net income;
    3. Property Tax - 15% on rental income.

    Further, income raised in or derived from outsides of Hong Kong is not subject to Hong Kong Corporate Tax.  With such a beneficial taxation system in Hong Kong, it is wise to set up your company here in Hong Kong.

    4. WORLD’S FREEST ECONOMY
    • Hong Kong is one of the world’s most dynamic economies driven by the principles of free enterprise, free trade and free markets open to all. There are no restrictions on inward and outward investments, no foreign exchange controls and no foreign ownership restrictions.  Factors such as a sound banking system, almost no public debt, a strong legal system, sizable foreign exchange reserves and a strict anti-corruption regimen serve to strengthen Hong Kong’s position as a business friendly region.

      Furthermore, businesses that are set up in Hong Kong (i.e. any Hong Kong company regardless of nationality) can now benefit by gaining preferential access to the Mainland China market from the Closer Economic Partnership Arrangement (CEPA) – a free trade agreement between the Central People’s Government and the Government of the Hong Kong Special Administrative Region.
    • Ranking Category Hong Kong’s Rank Source
      World’s Freest Economy 1 The Heritage Foundation, Index of Economic Freedom, 2016
      World’s Most Competitive Economy 7 IMD World Competitiveness Yearbook, 2016
    5. LIBERAL IMMIGRATION POLICY
    • Hong Kong follows a liberal immigration policy.  Nationals of about 170 countries and territories are allowed visa-free visits to Hong Kong for periods ranging from 7 to 180 days.  Short-term visitors may conduct business negotiations and sign contracts by entering Hong Kong on a visitor visa or entry permit.  There are various policies and schemes for the employment of foreign professionals, employment of Mainland talents and professionals, those wishing to enter for investment etc.  Dependent visas are issued and allow the holder to undertake almost any type of lawful employment in Hong Kong.  Consequently, incorporations setting up in Hong Kong enjoy an international variety of hiring foreign expatriates who are specialized in their own industries.
    • Ranking Category Hong Kong’s Rank Source
      World’s least restrictive immigration laws for foreign talent 1 IMD World Competitiveness Yearbook, 2008
    6. PRODUCTIVE WORK FORCE
    • Hong Kong consists of a highly-skilled, well-educated work-force. The workforce consists of experienced and entrepreneurial professionals who are known to be especially well versed with the business environment in the fast-growing industry. Employees are generally considered to be diligent, competitive and are constantly seeking to improve themselves.  Although English is the language of communication in international business settings,  Hong Kong workforce is also conversant with Cantonese and Mandarin, owing to the country’s close link to China.  Such language proficiency facilitates foreign incorporations to localize smoothly into the local business environment.
    • Ranking Category Hong Kong’s Rank Source
      Most motivated workforce in Asia 7 IMD World Competitiveness Yearbook, 2016
      Most Business conducive Labour Relations in Asia 2 IMD World Competitiveness Yearbook, 2008
      Best Labour/Employer Relations in Asia 2 The Global Competitiveness Report, 2007-2008, World Economic Forum

Testimonials

Client References

Chris and Bonnie at Prism have been an absolute pleasure to work with. They clearly explained the application process, assisted in drafting necessary documents and were always available to address any questions or concerns. We couldn't have asked for better consultants.

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Cinar, Karazona

Director, Organic Modernism Limited


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