Hong Kong: Gateway to China

Hong Kong has been a port of trade and economic prosperity since ancient times. 

The UK and Hong Kong have a rich political and economic history. The relationship between the two countries remains friendly.  

Hong Kong’s free port and geographic location makes it the ‘Gateway to China’ and the wider Asian markets. Therefore, expanding your business into Hong Kong is a great opportunity for wide-scale growth.  

Why Hong Kong attracts so much Foreign Direct Investment (FDI)  

Hong Kong is one of the UK’s largest trading partners, with 1.7 per cent of the total UK trade in the last four quarters. It attracted 4.4 per cent (£77.6 billion) of the UK’s outgoing FDI. 

Clearly, Hong Kong must be doing something right for so many UK businesses to be investing in its market.  

Here are some of the reasons UK business owners might consider expanding through the ‘Gateway to China’.  

  • Non-imposed taxes: Hong Kong does not impose tax on sales, capital gains, dividends, estates, or VAT. 
  • Tax allowances: The extreme deductions often levied on FDIs make the tax system in Hong Kong highly beneficial to international businesses.  
  • “One Country, Two Systems”: Businesses operating in Hong Kong do not have to operate under Chinese Law but are still, technically, part of China. Businesses based in Hong Kong, therefore, have preferential access to the mainland market compared to foreign companies.  
  • Free trade port: Hong Kong is a free trade port meaning that businesses can operate within very relaxed import and customs regulations.  
  • Location: Because of its relationship to China, Hong Kong has unrivalled access to Indochinese, Japanese and mainland Asian markets.  
  • Language: Most business in Hong Kong is conducted in English. 


Thanks to our close connection with experts in Hong Kong and South East Asia, Macalvins can explain how to make the most of these benefits when your business chooses to expand into Hong Kong’s burgeoning market.  

How to expand into Hong Kong’s rapidly growing market 

Hong Kong has no restrictions on foreign ownership of businesses. This means you can go ahead and start your own company in the region right away. Most SMEs opt to set up subsidiaries instead, however.  

To do business in Hong Kong you are required to register with the authorities. With the help of our experienced team at Macalvins, the process of registering a branch office, a representative office or even a Hong Kong limited company, is far simpler.  

The best way to expand your horizons and move into international markets is to get in contact with Macalvins’ experts who can guide you through your expansion and beyond.  

To find out how Macalvins can help you expand your business to a global audience, get in touch or visit our website.   

Posted in blog, Business.