5 Advantages of Establishing a Non-Resident Enterprise in Hong Kong, Do You Know?

Five Significant Advantages of Establishing a Non-Resident Enterprise in Hong Kong-Do You Know Them?

Hong Kong, as one of the international financial centers, attracts numerous enterprises with its superior geographical location, sound legal system, and efficient business environment. For non-resident enterprises, setting up branches or companies in Hong Kong not only allows them to enjoy various policy benefits but also lays a solid foundation for future global layouts. Below are the five most prominent advantages that attract non-resident enterprises to Hong Kong.

Firstly, Hong Kong has a well-established legal system and highly transparent business environment. According to recent reports, Hong Kong has been ranked among the freest economies in the world for many consecutive years. Its common law system aligns with international standards, providing enterprises with a fair and just competitive platform. The measures for intellectual property protection in Hong Kong are very comprehensive, which enables enterprises holding patents or other intellectual properties to operate securely. For instance, a European technology company rapidly expanded its Asian market through localized services after setting up a branch in Hong Kong without worrying about theft of intellectual property rights.

Secondly, Hong Kong has a low tax rate and simple tax system. The corporate income tax rate is only 16.5%, and there are no indirect taxes such as value-added tax or sales tax. This low tax burden policy significantly reduces the operating costs of enterprises. According to relevant statistical data, since 2018, Hong Kong has introduced a series of tax preferential policies to encourage innovative enterprises to settle down. A U.S. entrepreneur interviewed said The biggest attraction of doing business in Hong Kong is the tax incentives, which allow us to invest more funds into product research and development.

Thirdly, Hong Kong possesses strong financing capabilities. The Hong Kong Stock Exchange HKEX is one of the leading stock exchanges in the world, with a mature capital market. Whether it's an initial public offering or secondary financing, enterprises can find suitable investors here. At the same time, Hong Kong gathers a large number of banks and venture capital companies, providing enterprises with diversified financing channels. Recently, a Chinese mainland new energy vehicle manufacturer chose to list in Hong Kong. Not only did it raise sufficient funds for technological research and development, but it also enhanced brand awareness.

Fourthly, Hong Kong boasts rich talent resources and a high level of internationalization. Hong Kong has a population of over 7 million, with nearly half being immigrants. This means that enterprises can easily recruit talents from different countries and regions. More importantly, Hong Kong has extremely high educational standards, and local university graduates generally possess good English proficiency and professional skills. A responsible person from a multinational consulting company mentioned We chose to set up our headquarters in Hong Kong because the talent reserve here is strong enough to meet our global needs.

Lastly, but equally important, Hong Kong has an advantageous geographical location and convenient transportation. As a bridge connecting mainland China with the world, Hong Kong has numerous flights to all corners of the globe every day. These convenient transportation conditions make enterprises more efficient when handling cross-border trade. Additionally, with the advancement of the Guangdong-Hong Kong-Macao Greater Bay Area construction, the ties between Hong Kong and cities like Shenzhen have become increasingly close, forming a vast economic circle. A Singaporean logistics company stated Due to Hong Kong's location in the core area of the Pearl River Delta, our cargo transportation efficiency has greatly improved.

In conclusion, Hong Kong, with its excellent rule-of-law environment, low tax burden, developed financial market, abundant internationalized talents, and advantageous geographical location, has become an ideal choice for non-resident enterprises. Whether it’s a startup or a mature group, they can find a path suitable for their own development here. If you are considering overseas expansion plans, why not direct your attention to Hong Kong? We believe it will be an important help to your career success!