Open Business Environment
Hong Kong has consistently maintained an open business environment that fosters commercial activities and international trade. As the world’s freest economy, it serves as a strategic gateway to Mainland China, offering unparalleled opportunities for businesses looking to expand in Asia.
One Country, Two Systems
Under the principle of One Country, Two Systems, Hong Kong retains its own currency, political structure, and legal framework. This unique arrangement allows the city to thrive as a global business hub while enjoying the benefits of direct access to Mainland China. Key advantages of this system include:
- The practice of the common law system, robust rule of law and a judiciary that exercises powers independently
- No foreign ownership restrictions, which promotes an inclusive business environment
- Both English and Chinese as official languages, with English as the preferred language for business dealings and contracts
- Free flow of capital, talent, goods, and information, essential for doing business in Hong Kong
World’s Most Competitive Economy
Hong Kong has been recognised as one of the world’s most competitive economies. According to the ranking 5th out of 67 tallied in the World Competitiveness Yearbook 2024 compiled by the International Institute for Management Development (IMD). This ranking underscores the city’s commitment to creating a favourable business environment characterised by:
- Strong economic performance
- High government efficiency
- Robust business efficiency
- Advanced infrastructure
Notably, Hong Kong's rankings in the categories of business efficiency and infrastructure rose significantly and came within the top 10 globally, while its ranking in government efficiency also remained high in the top three.
World’s Freest Economy
Hong Kong stands as the world's freest economy, leading 165 economies according to the Fraser Institute’s Economic Freedom of the World 2024 Annual Report. This prestigious ranking reflects Hong Kong's exceptional competitiveness and its position as the easiest place to do business in the region.
The city excels particularly in two crucial areas, having claimed the top spot globally in free trade and regulation. Additionally, Hong Kong's strong monetary freedom is evidenced by its impressive third-place ranking under sound money.
Businesses benefit from a low and simple tax system with profit tax deductible expenses. This efficient tax system, combined with transparent markets and business-friendly policies, creates an unparalleled environment for international commerce and investment.
Strong Intellectual Property Protection
The Government prioritises strong intellectual property protection through specific policies and legal frameworks designed to safeguard rights. The city’s intellectual property laws adhere to the highest international standards, ensuring a free market that promotes innovation and fair competition.
In conclusion, Hong Kong's strategic location, combined with its open trade policies and robust regulatory framework, makes it an ideal place for entrepreneurs and businesses looking to thrive in the Asia-Pacific region. Whether you are considering how to set up a business in Hong Kong or exploring networking events, the city offers a wealth of resources and advantages that are hard to match.
