Hong Kong: Investing

FDI in Figures

According to the “World Investment Report 2010," published by the United Nations Conference on Trade and Development, Hong Kong has risen to the fourth position in the world for foreign direct investments (FDI) in 2009 and maintained the second place in Asia after China. 

The FDI fluxes, which have slowed down as an effect of the global recession, have again began to grow in 2010. This tendency will continue, due to the key role which the Asian reagion will play in global growth.

Hong Kong's attraction is due to a number of its strengths: its strategic position which makes the island the access gate to the Chinese market, its status as a free port, its simple and very incentive tax regime, its efficient infrastructure and legal security.

Why You Should Choose to Invest in Hong Kong

Strong Points

Hong Kong is an international leader in terms of export and as a services center. The country is also the bridgehead to one of the largest production bases in the world, China. Hong Kong has a sound economy and an efficient financial and banking system.
Favorable tax measures, the transparency of local institutions, political stability, freedom of information, availability of qualified human resources as well as its advantageous geographical location in Asia, all constitute to make Hong-Kong a preferred place for company establishment, as witnessed by the millions of companies registered on the territory. In 2003, the Capital Investment Entrant Scheme (CIES) was launched by the Hong Kong Special Administrative Region (SAR) Government. This scheme aims to facilitate the entry for residence for Foreign investors through capital investment into permissible assets without the need to establish or join in a business.

Weak Points

Hong Kong has few, yet  consequential, negative points against setting up:
- High cost of real estate and work space (offices, shops,etc.);
- High cost of salaries, compared to other Asian countries such as Mainland China and India;
- The question of Hong Kong's future, especially when the town will be completely integrated with the People's Republic of China;
- The excessive importance of the financial sector.
Furthermore, on the whole of the 2008-2009 year, the Hong Kong stock market was highly disturbed. The stock market's main indicator fell by 45%, the lowest in 34 years.

Government Measures to Motivate or Restrict FDI

Hong Kong is a free territory for investments, which are in fact encouraged by the government with a favorable taxation policy and light legislation. Foreign companies can be set up freely, register their brands and the Director of the company doesn't have to be a citizen nor resident of Hong Kong.

Bilateral Investment Conventions Signed By Hong Kong

Hong Kong has signed bilateral agreements for investments with 15 countries.
To see the list of countries, click here.
To see the agreements, click here.

Procedures Relative to Foreign Investment

Freedom of Establishment

Yes. Visit http://www.investhk.gov.hk/

Acquisition of Holdings

Acquisition is authorised, except in certain sectors of activity.

Obligation to Declare

A registration certificate should be requested from Inland Revenue Department (IRD). Foreign Investment Agency in the country keeps you informed about the authorisations necessary for the establishment.

Competent Organization For the Declaration

Companies Registry
Tax authority of Hong Kong (IRD)

Requests For Specific Authorizations

Only some sectors are closed for foreign investors, like communications or other areas of activity considered for public utility.

Investment Opportunities

Investment Aid Agency

Invest in HK

Tenders, Projects and Public Procurement

HK Government, E-Tender Box (ETB)
Tenders Info, Tenders in Hong Kong
DgMarket, Tenders Worldwide

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