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Hong Kong - Preferred Destination for Enterprises to Set Up and Expand Businesses

Updated: Apr 27

Hong Kong - Preferred Destination for Enterprises to Set Up and Expand Businesses | Bestar
Hong Kong - Preferred Destination for Enterprises to Set Up and Expand Businesses | Bestar

Hong Kong - Preferred Destination for Enterprises to Set Up and Expand Businesses

Hong Kong is a popular destination for businesses to set up and expand. There are a number of reasons for this, including:

  • Business-friendly environment: Hong Kong is known for its simple and efficient business regulations, making it easy to start and run a business.

  • Low taxes: Hong Kong has a territorial tax system, which means companies are only taxed on profits generated in Hong Kong. The corporate tax rate is also relatively low.

  • Strategic location: Hong Kong is a major gateway to mainland China and the broader Asia-Pacific region. This makes it a great base for businesses looking to tap into these growing markets.

  • Strong legal system: Hong Kong has a common law legal system based on the English legal system. This provides businesses with a high degree of certainty and predictability.

Why Foreign Companies Relocate to Hong Kong

There are several key factors that make Hong Kong attractive for foreign companies looking to relocate or expand:

Business Friendliness:

  • Simple Regulations: Hong Kong boasts a reputation for clear and efficient business regulations. This makes the process of setting up and running a business streamlined, saving companies time and money.

  • Free Market: Hong Kong adheres to a free market philosophy, with minimal government intervention. This allows businesses to operate with greater flexibility and autonomy.

Tax Advantages:

  • Low Corporate Tax Rate:  Hong Kong has a competitive corporate tax rate, typically around 16.5%.

  • Territorial Tax System: Companies are only taxed on profits generated within Hong Kong. This can be a significant advantage for businesses with international operations.

  • No Capital Gains Tax or Sales Tax: There are no capital gains taxes or sales taxes in Hong Kong, further reducing the tax burden on businesses.

Strategic Location:

  • Gateway to China: Hong Kong's proximity to mainland China provides a unique advantage for businesses looking to access the vast Chinese market.

  • Asian Hub:  It's a central location within the Asia-Pacific region, offering easy access to other growing economies in Southeast Asia.

Additional Benefits:

  • Strong Legal System: Hong Kong has a well-established common law legal system based on the English system, ensuring a high level of legal transparency and fairness.

  • Skilled Workforce: Hong Kong has a highly skilled and multilingual workforce, making it easier for companies to find the talent they need.

  • World-Class Infrastructure: Hong Kong boasts excellent infrastructure, including a modern transportation network and advanced communication technology.

  • Liberal Immigration Policies: Hong Kong offers relatively easy immigration procedures for entrepreneurs and skilled professionals.

In essence, Hong Kong offers a combination of a business-friendly environment, tax benefits, strategic location, and a strong supporting infrastructure, making it an attractive destination for foreign companies looking to expand their reach in Asia.

How Bestar can Help

Hong Kong - Preferred Destination for Enterprises to Set Up and Expand Businesses

Here's how Bestar could potentially contribute to making Hong Kong an even more preferred destination for enterprises to set up and expand businesses:

  • Streamline Business Setup: Bestar could offer efficient business incorporation services, helping companies navigate regulations and complete the process quickly.

  • Facilitate Expansion: We could provide guidance and support to companies looking to expand their operations in Hong Kong, including market research, talent acquisition, and navigating legal and logistical hurdles.

  • Offer Tax Advisory: Expertise in tax laws and regulations can be valuable for foreign companies, helping them take full advantage of Hong Kong's tax benefits.

By focusing on its specific area of expertise and collaborating with other stakeholders, Bestar can play a role in solidifying Hong Kong's position as a leading destination for business expansion in Asia.


the development of "headquarters economy" to attract enterprises from outside Hong Kong to set up headquarters and/or corporate divisions in Hong Kong

different business sectors,

such as financial technology,


supply chain management and

logistics technology.

energy innovative technology company

major line of business in Hong Kong,

import/export trade, wholesale and retail sector,

financing and banking sector and

professional, business and education services sector

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