Hong Kong: The best place in the world to do business?

The dragon boat race season is always a highlight of my Hong Kong calendar. I love the teamwork, the physical effort and the mental challenge. Dragon boat festivals are deeply rooted in Chinese folklore and ritual but, typically, Hong Kong added its own stamp by turning the tradition into an international sport. And the speed and elegance of a well-crewed dragon boat powering across Hong Kong waters seems emblematic to me of the progressive spirit of this place.

By any recognised measure, Hong Kong is proven to be one of the world’s most business-friendly environments. Last year, the World Bank’s Business Ready report picked it out as a top performer for its international trading opportunities, ease of business entry, operational efficiency and utility infrastructure. And the last time that the World Bank produced a country-by-country ranking (2020’s Doing Business report), Hong Kong was named the third best place in the world to run a business.

Little surprise then that 145,023 new companies were formed in Hong Kong last year, bringing the total number of companies registered in the Hong Kong Special Administrative Region (“HKSAR”) to 1,460,494. That’s more than double the number of registered companies per capita in the UK.

So why is this? I’ve been based in Hong Kong for seven years, leading the team at LawDeb as we help clients to establish and develop businesses here. And from my experience to date, these are the key reasons why Hong Kong is such a good place to do business.

1. The economy is stable

Hong Kong is often seen as a staging post for companies hoping to break into China and the Far East. But these things work both ways – and for China, Hong Kong is viewed as a gateway into the West. The Hong Kong Dollar is pegged to the US Dollar, which adds to economic stability.

Hong Kong therefore works for everyone, and China has a vested interest in ensuring it continues to prosper. That understanding is well established, and underpinned by the Closer Economic Partnership Arrangement (CEPA) – the free trade agreement that has been in place since 2003.

And so, despite geopolitical uncertainty, Hong Kong’s economy remains strong and stable. Real GDP rose by 3.1% year-on-year in Q1 2025 – far higher than France, Germany or Japan – and Hong Kong has significantly outpaced the UK in the past two years.

2. Enterprise is embraced

There are few (if any) places on the planet that offer so much support to ambitious enterprises. The Government of the Hong Kong Special Administrative Region (HKSAR) is exceptionally proactive, channelling extensive free support through InvestHK, its investment agency. 

InvestHK provides practical assistance with finding office space, securing visas and liaising with the government, as well as business intros, routes into China and access to its 30 offices worldwide. Importantly, it also provides detailed insights to businesses wishing to work in the following sectors: financial services, technology, fintech, the creative industries, tourism & hospitality, transport & industrial, consumer products, and business & professional services.

It's also worth noting that HKSAR’s 2025/26 Budget included targeted funding for technology, education and business innovation – and Hong Kong has one of Asia’s most advanced and protective IP regimes.

3. Fintech is fast-tracked

The Hong Kong Government is particularly keen to attract fintech companies through an InvestHK acceleration programme called Global Fast Track. This connects fintechs directly with corporates, investors, and regulators in Hong Kong, gives them rapid access to useful contacts in China and beyond, and provides specialist consultancy in areas such as fundraising and getting to market.

Cyberport in Hong Kong is a major digital tech hub and AI accelerator, managed by the Hong Kong SAR Government. It's designed to foster Hong Kong's transformation into a smart city by nurturing digital entrepreneurs, promoting AI development, and driving industry digitalisation. 

4. It’s easy to move here

Hong Kong is well known for its simple visa process for overseas professionals. A standard visa, subject to a few straightforward conditions (such as having a confirmed job offer), is typically processed within four to six weeks. However, there is also a fast-track process for high earners, graduates from top universities, and people with outstanding expertise in specific fields. As well as speeding the process up, this Top Talent Pass Scheme is also open to applicants who do not have a job offer.

Setting a business up – or moving one in – is also straightforward. The Hong Kong Companies Registry is easy to use, making it quick and simple to get your business up and running fast. Furthermore, it’s relatively simple to move an existing company to Hong Kong. A ‘redomiciliation regime’ was recently put in place (effective from 23 May this year) allowing non-Hong Kong companies to redomicile to Hong Kong without jumping through the usual hoops of liquidation and re-incorporation.

5. It’s very business-friendly

Hong Kong is one of the world’s freest markets, with no foreign exchange controls, low taxes (see below) and minimal government intervention.

The Hong Kong legal system is based on English common law, making it simple for British and other western organisations to navigate. The judiciary is independent and effective dispute resolution mechanisms are in place.

Chinese and English are Hong Kong’s official languages, with English the main language of the professional business world. While Cantonese is the primary spoken language, legal and official documents are published in both English and Chinese. Mandarin is increasingly used in education and mainland-facing business, but English remains dominant in professional and corporate settings.

Even the time zone here is helpful. There is no daylight saving time – it’s consistent throughout the year – aligning with Beijing, Singapore and Perth, and just one hour behind Tokyo. The difference with Europe ranges from four to eight hours, providing opportunities for morning or evening calls on either side. The difference with the US is more significant and may require shifting work schedules or overlapping teams.

And of course, Hong Kong is one of the world’s leading international financial centres with deep capital markets and a sophisticated banking ecosystem, including more than 70 of the world’s top 100 banks. It’s also one of the few places outside the US where you can transact in US dollars without a correspondent bank.

6. Taxation is low

Hong Kong's tax system is another factor that tends to make business people – and residents in general – feel welcome. There are only three taxes in place: Hong Kong’s version of income tax, corporation tax and property tax. There is no VAT or sales tax. And there is no capital gains tax, estate tax or tax on dividends.

Currently, income tax is levied at just 2-17% or at a flat rate of 15%, depending on which is lower. The current corporation tax rate is 8.25% on the first HK$2 million of profits and 16.5% thereafter. There are also significant deductions available for R&D costs and IP income.

7. Compliance is straightforward

Compliance and regulation are broadly in line with the principles that organisations in the UK and the West are familiar with, but there also a few small differences that might prove helpful. For instance, Hong Kong-registered companies are not required to appoint a local director or hold their board meetings in Hong Kong.

Having said that, in line with global trends, regulation has been ramped up to address issues such as money laundering and customer vulnerability. Compliance is robust in Hong Kong, but no more so than anywhere else in the developed world. And seeking expert advice is of course a key requirement for moving into this market. Due diligence over documentation, transactions and company structure are essential, but perfectly manageable.

Are there any downsides?

I’m painting a very positive portrait of how the business eco-system in Hong Kong welcomes and supports enterprise. But of course, all business environments come with their own challenges.

The most common questions put to me relates to political uncertainty. The mass demonstrations that erupted in 2019 over extradition proposals were damaging but Hong Kong quickly settled down again, and business here bounced back strongly after the pandemic crisis. Also, as I mentioned earlier, it’s very much in the political and economic interests of China to support a prosperous Hong Kong.

Other than that, and depending on what sort of business you want to launch, it’s worth appreciating that Hong Kong represents a relatively small market of around 7.5 million people. The big attraction, of course, lies in the markets on its doorstep, particularly China.

Oh, and the cost of living is relatively high – but then, this is a similar case for most major financial hubs!

To me Hong Kong is, above all, a vibrant, welcoming and exceptionally positive environment. It’s hard to think of anything else it could do to help business prosper, and it’s a wonderful place to live. The dragon boat race season is over for another year, but I’m looking forward to the next one.