Doing Business in Hong Kong

Hong Kong’s economy remains one of the most resilient and competitive in Asia. In 2024, the city’s GDP was estimated at approximately HKD 2.9 trillion, contributing significantly to regional trade and finance activities (Hong Kong Census and Statistics Department). The population of 7.4 million offers a highly urbanized and globally connected consumer base. The city also attracted over HKD 110 billion in Foreign Direct Investment (FDI), confirming its reputation as a safe and attractive destination for international businesses (InvestHK).

Financial Services: Hong Kong is ranked among the top three international financial centers globally, home to a large concentration of global and regional banks, hedge funds, and insurance giants. The financial sector represents over 20% of the city’s GDP and provides robust access to IPO markets, wealth management, and cross-border investment services (Hong Kong Monetary Authority).

Trade and Logistics: The city’s free port status and world-class logistics infrastructure support Hong Kong’s role as a regional and international trading powerhouse. The port and airport are consistently ranked among the busiest in the world for cargo handling, facilitating global supply chains and regional distribution (Hong Kong Trade Development Council).

Technology and Innovation: Hong Kong’s innovation economy has accelerated, with strong support from government-funded initiatives like Cyberport and the Science Park. The city is becoming a hub for fintech, AI, and biomedical startups, supported by favorable IP protection and research funding programs (Innovation and Technology Commission).

Tourism and Hospitality: While impacted by the pandemic, Hong Kong’s tourism sector remains vital, with a revival fueled by retail, MICE (Meetings, Incentives, Conferences and Exhibitions), and luxury experiences. In 2024, tourist arrivals rebounded with over 30 million visitors, contributing to job creation and business growth in hospitality and entertainment industries (Hong Kong Tourism Board).

Starting a business in Hong Kong requires registering a company with the Companies Registry, obtaining a Business Registration Certificate from the Inland Revenue Department, and submitting relevant incorporation documents. The process is highly efficient, with most applications completed within one to two working days. Hong Kong also supports online applications for local and foreign-owned entities. Learn more about our Company Registration services.

Companies in Hong Kong must comply with Hong Kong Financial Reporting Standards (HKFRS), file annual returns with the Companies Registry, and maintain updated statutory records. A company secretary is required to oversee legal obligations, including board meeting documentation and shareholder management. Compliance helps maintain business transparency and avoids regulatory penalties. Explore our Accounting and Tax services for ongoing support.

Hong Kong’s taxation system is one of the most business-friendly in the world, with the following key features:

These tax advantages are further enhanced by a network of over 40 double taxation treaties and incentive programs for R&D and innovation-driven businesses (Inland Revenue Department).

The Hong Kong government actively supports business growth and international expansion through a variety of initiatives. These include funding programs such as the BUD Fund (Branding, Upgrading and Domestic Sales), the Technology Voucher Programme (TVP), and the SME Export Marketing Fund. These schemes offer financial support for digital transformation, R&D, overseas promotion, and productivity enhancement. Our Business Visa and Work Permit services also help businesses attract and retain global talent.

Intellectual Property: Hong Kong offers a comprehensive IP protection regime covering trademarks, patents, designs, and copyrights. Businesses are encouraged to register their intellectual property with the Intellectual Property Department to safeguard innovations and brands. We offer Trademark Registration services to help secure your intangible assets.

Labor Laws: Employment in Hong Kong is governed by the Employment Ordinance, which outlines terms regarding wages, rest days, termination, and statutory holidays. Employers must also make mandatory contributions to the Mandatory Provident Fund (MPF). To remain compliant, we help draft and manage legally sound Employment Contracts.

Compliance and Licensing: Depending on the sector, businesses may require additional licenses from regulatory bodies such as the SFC (Securities and Futures Commission), HKMA (Hong Kong Monetary Authority), or FRC (Financial Reporting Council). Companies must also adhere to anti-money laundering (AML), data privacy, and competition laws. We provide Business Contracts and Compliance Services to help navigate these regulatory requirements.

Hong Kong’s prime location on the southern coast of China positions it as a gateway to Mainland China and a central hub in the Asia-Pacific region. Key infrastructure includes:

Hong Kong boasts a diverse, bilingual, and highly educated workforce, with strong international orientation. The territory is home to globally ranked universities such as the University of Hong Kong (HKU) and the Hong Kong University of Science and Technology (HKUST), producing skilled graduates in business, law, finance, and STEM fields. Urban density and advanced infrastructure fuel opportunities in real estate, retail, and professional services (Census and Statistics Department).

Hong Kong presents a strong rental market for investors targeting both residential and commercial spaces. Demand remains high in key business districts such as Central, Admiralty, Wan Chai, and Tsim Sha Tsui, as well as in up-and-coming hubs like Kowloon East. High rental yields are driven by space scarcity and the city’s strong business inflows. Professional support in property management is essential to maximize ROI and maintain tenant satisfaction. Explore our Property Management Services to streamline your rental investment.

Investing in real estate in Hong Kong is seen as a long-term asset strategy, particularly for high-net-worth individuals and institutional investors. Foreign ownership is permitted, although buyers must pay additional stamp duties such as the Buyer’s Stamp Duty (BSD) and Ad Valorem Stamp Duty (AVD). Due diligence is critical to ensure compliance with local land and building regulations. For commercial real estate, securing legal clarity on lease terms and zoning is key (Hong Kong Land Registry).

These companies demonstrate Hong Kong’s vibrant startup ecosystem and its ability to foster innovation across AI, logistics, and digital commerce. With strong government support, global connectivity, and access to capital, Hong Kong continues to attract forward-thinking entrepreneurs and investors.

1. SenseTime: Founded in 2014 and headquartered in Hong Kong, SenseTime is one of the world’s leading artificial intelligence companies. Specializing in computer vision and deep learning technologies, SenseTime powers applications in smart cities, autonomous vehicles, and medical diagnostics. The company has achieved unicorn status and went public on the Hong Kong Stock Exchange in 2021. SenseTime’s success highlights Hong Kong’s strength in supporting frontier technologies and deep tech innovation.

2. Lalamove: Established in 2013, Lalamove is a Hong Kong-based logistics technology company that has expanded operations across Asia and Latin America. It connects users with delivery drivers through its mobile and web platforms, offering fast and reliable same-day delivery services. The company’s rapid rise and international scaling illustrate how Hong Kong’s entrepreneurial environment supports scalable, tech-enabled solutions in the logistics and e-commerce sectors.

3. HKTVmall: HKTVmall, operated by Hong Kong Television Network Limited, is a leading e-commerce platform that combines online shopping with logistics and last-mile delivery. Launched in 2015, it quickly gained popularity by offering a wide range of consumer products with fast delivery across Hong Kong. Its success represents the growing demand for digital retail experiences and the city’s readiness to support online business models.

Economic Forecast and Development Projects: Hong Kong’s economy is set to rebound steadily with infrastructure projects such as the Northern Metropolis development and the Greater Bay Area initiative enhancing connectivity, innovation, and real estate development (Development Bureau).

Challenges and Opportunities: While the city faces challenges like space limitations, political dynamics, and global competition, its resilience, strategic advantages, and legal transparency continue to attract global business leaders. Sectors such as green finance, biotech, and digital assets offer promising growth areas. With expert guidance and legal support, your business can thrive in this world-class financial center. Contact us to begin your Hong Kong journey today.