Reporting from Hong Kong: As global markets evolve, Hong Kong continues to reinforce its status as a leading destination for international business and technological innovation, offering unmatched advantages for companies looking to expand in Asia and beyond.

Strategic Advantages for Global Businesses
With its prime location at the heart of Asia, world-class infrastructure, and pro-business policies, Hong Kong remains a top choice for foreign investors. The city’s connectivity is unparalleled—within a four-hour flight from key Asian markets and five hours from half the world’s population, supported by 120 airlines servicing 220 global destinations.

“Hong Kong’s unique combination of strategic location, free flow of capital, and common law system makes it the ideal springboard for businesses entering Asian markets,” said Wendy Chow, Head of Information & Communications Technology at InvestHK, the government department dedicated to attracting foreign investment.

Business-Friendly Environment
Hong Kong’s competitive tax regime stands out globally:

1. Corporate tax: 16.5% rate on profits above HKD 2 Million and just 8.25% rate on profits up to HKD 2 Million
2. Personal tax: Capped at 15%, significantly lower than Singapore (24%) and China (45%)
3. No VAT, capital gains tax, or withholding taxes, making it one of the world’s most tax-efficient jurisdictions

The city hosts 9,960 foreign companies, including 1,410 regional headquarters, with major investors from Mainland China, Japan, the U.S., U.K., and Singapore across key sectors like finance, trade, and professional services.

Thriving Innovation Ecosystem
Hong Kong has transformed into a global innovation powerhouse, supported by:

1. Top-ranked universities including HKU (17th globally) and HKUST (36th)
2. Cutting-edge facilities like Hong Kong Science Park and Cyberport, housing over 2,000 tech firms
3. Vibrant startup scene with 4,694 startups (40% growth since 2020) and 12 unicorns
4. Robust IPO market, ranking #1 globally for fundraising seven times since 2009

“The government has committed substantial resources to build Hong Kong’s innovation capacity,” noted Chow, highlighting initiatives like the HKD3 billion AI Subsidy Scheme (AISS), which covers up to 70% of costs for eligible projects. She further spoke about the Enterprise Support Scheme (ESS), offering up to HKD30 million per R&D project, and the Re-industrialization Funding Scheme (RFS), supporting smart manufacturing with matching grants.

Talent and Future Growth
To address industry needs, Hong Kong offers specialized visa programs including:

1. Tech Talent Admission Scheme (TechTAS) for fast-tracked R&D professionals
2. Top Talent Pass Scheme (TTPS) attracting high-income individuals and elite graduates

Looking ahead, the Hong Kong-Shenzhen Innovation and Technology Park will further integrate the city into the Greater Bay Area’s 86-million consumer market, creating new opportunities in cross-border collaboration.

“With our strategic initiatives, world-class talent pool, and gateway position to China, Hong Kong is poised to lead the next wave of global innovation,” Chow concluded. For businesses exploring Asian expansion, Hong Kong offers the ideal combination of market access, innovation ecosystem, and business-friendly environment—solidifying its position as Asia’s premier global business hub.