Business incubation in Hong Kong is really a good choice for investors both from home and abroad who wants to enter into Chinese market or Asian market. Being recognized as one of the world's leading financial centers, Hong Kong is an attractive place to invest as it offers significant benefits for foreign investors. It is a gateway to the market in mainland China.
In keeping with its free-market philosophy, there are generally no restrictions on foreign investment in Hong Kong. In accordance with the Basic Law, no foreign exchange control policies shall be applied in Hong Kong. The Hong Kong dollar shall be freely convertible. Markets for foreign exchange, gold, securities, futures and the like shall continue. The Hong Kong Government shall also safeguard the free flow of capital within, into and out
of Hong Kong.
Options When Setting Up a Company in Hong Kong
The following options are available for foreign companies intending to carry on business in Hong Kong:
1. Setting up a separate subsidiary by either incorporating a new company under Hong Kong law or purchasing a shelf company;
2. Setting up a branch office by registering as a non-Hong Kong company with the Companies Registry; or
3. Setting up a representative office in Hong Kong.
Incentives for Foreign Investors
Hong Kong’s general business environment, proximity to Asia and China in particular, and its low tax rate are all promoted as incentives in themselves.
Certain government funding schemes are potentially available to foreign investors particularly those involved in design and creative industries; innovation and technology upgrading in the manufacturing and service industries; technology ventures and R&D in high-value added industries; new technology training and patent application.
Small and medium sized enterprises (SMEs) are eligible for grants and funding administered by the Trade and Industry Department, such as low interest loans for business installations and equipment, and funding for export marketing and training.
Taxation of Foreign Individuals
Salaries tax is payable on every person’s Hong Kong sourced income, regardless of nationality. Income is defined as all benefits such as salary, bonuses and all perquisites capable of being turned into money.
The standard rate (ceiling to tax liability) of salaries tax is currently 15%. Employees of foreign companies seconded to Hong Kong from abroad are liable to pay salaries tax on their Hong Kong sourced income. An exemption exists if a person renders services in Hong Kong for a period not exceeding 60 days per tax year in Hong Kong.
Intellectual Property Protection in Hong Kong
Hong Kong is one of the main intellectual property hubs in the Asia Pacific region due to its comprehensive intellectual property laws and reliable enforcement systems. It is important to note at the outset that intellectual property rights are territorial in nature, and thus, having an intellectual property right registered elsewhere does not automatically give intellectual property protection in Hong Kong.
The Government of the Hong Kong Special Administrative Region (SAR) attaches great weight to the contribution that the creation of intellectual property makes to the economy.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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