Breaking Into Hong Kong : A 2025 Opportunity For Business
Expanding your business into Asia can feel like navigating a labyrinth, but what if there was a clear path, a vibrant hub perfectly positioned for growth? Hong Kong has long been celebrated as a major international business centre, and experts agree it remains a premier location for companies looking to scale across the Asia-Pacific region in the coming years. Hong Kong was declared as the world’s third easiest country to do business with in 2020 by the World Bank.
We recently tuned into a fascinating discussion featuring a TLC roundtable hosted by Bhargavi Rathi, CEO of Digital Go Where. She engaged in a riveting discussion with top industry leaders whose insights painted a clear picture of why Hong Kong is not just easy to enter, but an ideal launchpad for significant growth. Here are some key takeaways from their conversation, highlighting why Hong Kong is considered one of the simplest jurisdictions to do business with globally:
Table Of Content
Strategic Location: The Unrivalled Gateway to Asia and the GBA
The panel consistently highlighted Hong Kong’s geographical position as a fundamental advantage. Kenneth KF Lee, MD of Amicorp Group described Hong Kong as
“one of the key business hubs in Asia-Pacific and an important gateway both in and out of mainland China”.
This proximity and access to the GBA provides access to a population of 87 million people and a GDP over 2 trillion US dollars. Hong Kong’s status as a Special Administrative Region (SAR) enjoying a unique relationship with China, including CEPA benefits, offers preferential access to the Mainland market without facing the complexities of direct mainland incorporation.
CEPA (Closer Economic Partnership Arrangement) is a free trade agreement concluded by the Mainland and Hong Kong covering four areas, namely trade in goods, trade in services, investment, and economic and technical cooperation.
Frictionless Company Setup: Ready to Roll in Half a Day
Miguel Latorre, MD of Acclime Hong Kong, emphasised the quick and easy process of company setup. He said-
“Setting up a company in half a day is one of the beauties of Hong Kong and one of the most shocking factors of Hong Kong. It’s easy. You can also have 100 % foreign ownership and no local director requirement among many other factors.”
Key requirements for setting up a limited company include having at least one director and one shareholder, providing a local registered address, and appointing a local company secretary. The minimum share capital can be as low as HK$1. Adding to the simplicity, foreign investors benefit from 100% foreign ownership and no local director requirement.
Simple and Favourable Tax, and Free Trade Systems
Hong Kong is renowned for its straightforward and attractive tax environment. Kenneth KF Lee highlighted,
“Hong Kong has one of the simplest tax systems globally. We have a free port, we don’t levy tariffs on imports or exports. Trading has long been one of our core pillars in Hong Kong, consistently attracting a wide range of companies across the world”
Hong Kong’s tax regime offers several distinct advantages: there is no Goods and Services Tax (GST), no capital gains tax, and no withholding tax on dividends. The corporate profits tax rate is highly competitive at 16.5% on assessable profits, with a reduced rate of 8.25% on the first HKD 2 million.
As a free port, the Hong Kong Special Administrative Region of the People’s Republic of China does not levy customs tariffs on imports, nor does it impose tariff quotas, surcharges, or any form of value-added tax (VAT) or its equivalent. These factors contribute to Hong Kong’s status as a leading trading hub in the Asia-Pacific region and a strategic gateway to southern China.
Biggest Marketing Mistake: The Crucial Importance of Localisation
While setup is easy, successfully connecting with the market requires understanding local nuances. Darren Chuckry, Founder & MD of HK Initiative, highlighted underestimating localization as a “big mistake” businesses make. He remarked-
“I see Hong Kong as an international city, but it’s made up of many different components. Localization is crucial, understanding the culture on the ground truly matters. You need to understand the local lifestyle, how people perceive luxury, and how those perceptions are evolving.”
To succeed in a market like Hong Kong, it’s essential to understand local consumer habits, tastes, and needs—they’re unique and different from other places. Marketing strategies that worked in New York or Berlin won’t necessarily work here, and pricing should reflect local perceptions of value.
Building strong local partnerships can help you navigate the market more quickly. Most importantly, define your brand clearly in a way that resonates with local customers, because ideas like luxury, value, and trust can mean something very different here.
As the discussion wrapped up, it was clear that Hong Kong offers a compelling proposition for businesses eyeing expansion in Asia.
“What I see is a combination of strong governance, easy access to capital, and a fast, hassle-free setup process, companies can be up and running in half a day. All of this makes Hong Kong incredibly attractive for businesses. It’s easy to scale up if things go well, and just as easy to scale down if needed. Plus, the talent pool here is top-tier.”
Bhargavi Rathi is an international growth marketer with a proven track record of helping companies scale effectively in business-friendly environments like Hong Kong. With her deep understanding of market dynamics, localization strategies, and consumer behavior, she empowers brands to navigate new markets with confidence. Her expertise in leveraging Hong Kong’s strategic advantages—such as its efficient setup process, access to capital, and strong talent pool—makes her a valuable partner for businesses aiming to grow and thrive in the region.
Looking to sales your business in international market
- Unlock global growth with the right strategy and support.
FAQs
Setting up a company in Hong Kong can take as little as half a day, thanks to streamlined procedures and digital infrastructure. The process is fast, efficient, and requires minimal bureaucracy.
Hong Kong offers a simple and competitive tax regime: No Goods and Services Tax (GST), no capital gains tax, no withholding tax on dividends. A low corporate tax rate: 8.25% on the first HKD 2 million in profits and 16.5% thereafter.
CEPA (Closer Economic Partnership Arrangement) is a trade agreement between Hong Kong and Mainland China that provides preferential access to the mainland market in areas like goods, services, and investments. Businesses in Hong Kong can enjoy simplified market entry into China without direct mainland incorporation.
To register a limited company in Hong Kong, you need:
- At least one director and one shareholder (can be the same person)
- A local registered address
- A Hong Kong company secretary
- Minimum share capital (as low as HK$1)
Yes. Despite global changes, Hong Kong continues to rank high in ease of doing business. It’s backed by a solid legal framework, strong governance, and free-market policies that support business scalability and sustainability.
The GBA is an economic region linking Hong Kong, Macau, and 9 cities in Guangdong, with over 87 million people and a GDP of USD 2+ trillion. Businesses in Hong Kong benefit from easy access to mainland China, CEPA trade advantages, and a connected market ideal for scaling across finance, tech, and logistics.
