Benefits of Hong Kong as a Business Destination for Startups
If you’re planning to set up a startup in a place that provides you with the ease of doing business, then Hong Kong is the best place for you. The success of a business depends on many factors, and one such factor is the location of your business.
Due to its strategic location, which is known as the heart of Asia, it becomes easy for Hong Kong to trade with the world. Hong Kong’s startup ecosystem makes it an ideal destination for entrepreneurs to set up their businesses. Hong Kong is a place where the startup trend is growing at an exceptionally brisk rate. Hong Kong acts as a beginning point for startups that want to come to mainland China or want to go global from China.
There are multiple benefits to doing business in Hong Kong. But, we get those benefits from several factors which help to launch startups in Hong Kong easily. And the factors that contribute to Hong Kong’s startup growth are convenient tax policies, marvellous infrastructure, attractive startup policies and exceptional support for the startup environment.
What are the reasons for the thriving startup ecosystem in Hong Kong?
There are several reasons for the thriving startup ecosystem in Hong Kong. It delivers the confidence which is needed to launch a startup somewhere. The environment in Hong Kong best fits startups to become successful. The support, capital, infrastructure, market and manpower Hong Kong delivers are second to none. The reasons for the thriving startup ecosystem in Hong Kong are as follows.
- International Reach – The strategic location of Hong Kong plays a vital role in maintaining international relations and the expansion of a business to a global level. Hong Kong has a wide reach in the international market which favours every sector of business.
- Market – Hong Kong has one of the best markets in the whole world. It has a variety of markets ranging from chopsticks business to smartphones. So, an entrepreneur has numerous opportunities to launch a successful startup.
- Government Initiatives – The government of Hong Kong has launched several initiatives to help new entrepreneurs to set up their businesses in Hong Kong. It is also because of their efforts, Hong Kong is one of the most favoured destinations for setting up a startup.
- Technology – Technology also has a vital role to play in the exceptional growth of startups in Hong Kong. Technology has made it easy to interact with different businesses and build partnerships to grow the business.
- Workspace – Hong Kong provides one of the best workspaces at an affordable price. Hong Kong’s co-working space concept helps to save a lot of money which could be invested to grow your business.
- Company and Support – Hong Kong’s startup community is admiringly active, and the support they provide to each other is remarkable. A good company helps to grow everyone, and Hong Kong provides that company. The company and support among the local entrepreneurs of Hong Kong help everyone to succeed.
Benefits of Hong Kong for Startups
There are multiple benefits to launching a startup in Hong Kong. Hong Kong is one of the top business destinations in the world. Hong Kong is the best place to launch a startup and achieve success. Hong Kong’s business benefits are listed below.
Hong Kong has always been an important part of Asia. It acts as a gateway of Asia for the rest of the world to enter Asian markets. It is at such a location where Eastern culture meets the Western culture. This helps to establish a diverse market in Hong Kong.
Hong Kong is also well-connected to the whole world, which favours a startup to build a strong network around the world. It acts as a stepping stone for investors to enter into Asia. It is easy to enter Hong Kong as over a hundred airlines offer direct flights to Hong Kong, which makes it less hectic to set up a startup there.
Favourable Business Environment
Setting up a business or launching a startup in Hong Kong is comparatively more accessible than in neighboring countries. This is the reason why Hong Kong is known as a business-friendly city. The process of starting a business in Hong Kong is highly simplified.
Any kind of approval from Hong Kong government officials isn’t needed to register your business. You just have to meet some basic requirements like choosing a unique name for your business, filling out the registration form and obtaining a local address.
Not only is the process of starting a business highly simplified but also it is highly secure, which gives a sense of security. The startup environment in Hong Kong is flourishing, and the business ecosystem makes it easy for entrepreneurs to start a business in Hong Kong. The mentality of the people there is highly positive and productive, and this helps to set up a startup in Hong Kong very easily.
Low Taxation and Business-Friendly Policies
Hong Kong provides numerous tax benefits and is renowned for its low taxation policies. Hong Kong practices a territorial tax technique that allows companies to pay taxes on the capital which is earned in or from Hong Kong. So, businesses can save a lot of tax on the money which is earned anywhere else. Another reason for Hong Kong’s low tax rates is no taxes are inflicted on the accumulated capital and shareholder bounties in Hong Kong.
Moreover, two-tier profit governance has pertained to Hong Kong-based companies, which helps both Limited and Unlimited companies to save a lot of money. Limited companies have different tax rates from Unlimited companies. Limited companies are charged 8.25% on the first HK$2 million, while the rest are charged at 16.5%. Likewise, the Unlimited companies are charged 7.5% on the first HK$2 million, while the rest are charged at 15%. This low taxation system attracts investors globally to set up a business in Hong Kong.
Hong Kong is also known for its business-friendly policies. The Hong Kong government has launched several initiatives to encourage entrepreneurs all around the globe to set up their businesses in Hong Kong. The Greater Bay Area of Hong Kong is being developed in such a way as to make it the Silicon Valley of China. Many infrastructural developments are being done in the area to improve the connectivity, network and workspace. This allows entrepreneurs to set up their startups in Hong Kong.
World-Class Financial and Banking Sector
Hong Kong provides one of the best financial and banking services in the world. It has a world-class financial and banking sector that assists you in setting up a startup in Hong Kong without any inconvenience. The financial sector of Hong Kong plays an essential role in maintaining the GDP of Hong Kong Asa and contributes about 21.3% of the GDP. So, the thing which attracts investors and entrepreneurs to set up a startup in Hong Kong is the size of the financial sector of Hong Kong and how convenient it is.
The next thing is the large and efficient banking sector of Hong Kong. It has one of the most coherent and accessible banking services in the world. Hong Kong has over 160 authorized banks and 8 virtual banks which makes it one of the largest banking systems in the world. Being easily accessible, Hong Kong’s banking system helps startups to grow and makes it easy for them to arrange funds.
Extensive Network and Connectivity
Hong Kong is a highly developed city and has one of the best technologies in the world. Hong Kong is using its extensive network and connectivity to attract more and more investors and entrepreneurs to Hong Kong. The large network in Hong Kong helps to set up a startup and grow it exceptionally. Network and Connectivity have played a vital role in making Hong Kong a financial hub.
Skilled Workforce and Talent Pool
As we all know, Hong Kong is continuously enhancing its systems which require a workforce. Hong Kong has a large and skilled workforce that can finish the work perfectly and in the least time possible. It is of great help to have such a skilled workforce to launch a business. It helps a lot as the business could be set up in no time and will save a lot of money which could be used in other sections of the startup.
Each startup needs employees to run their business. So, the thing which we require is a talent pool. Hong Kong is well renowned for having one of the largest talent pools in the world. Hong Kong has one of the best employees to hire for your startup, which will help your business to reach new heights.
Ready to launch your startup in Hong Kong?
Although it is a straightforward and less intricate process to open a business in Hong Kong, there are always some points for the owners to keep in mind while launching a startup. Startupr is a company that won’t allow you to neglect those points and will assist you with setting up the startup in Hong Kong. We will help you to set up your business, complete the registration process, file taxes, etc., in Hong Kong. Startupr is the best company to manage your startup’s operations and gain success in the business.
Hong Kong is a financial hub that has all the business required factors to achieve success. We hope the article must have provided you with all the required knowledge as to why setting up a startup in Hong Kong is beneficial. If you have an idea for a startup and are not sure where to set it up, then Hong Kong is the place. Moreover, if you face any trouble while setting up your business, then Startupr is here to help you.