Why Hong Kong​

 

1. Hong Kong welcome new immigrants
   Hong Kong's population comprises approximately 8.1% individuals of non-Chinese descent. The city is characterized by a rich tapestry of cultures, languages, social interactions, and opportunities. Residents in Hong Kong typically speak at least three languages, facilitating seamless communication with international visitors. Expatriate families often find it straightforward to acclimate to the local lifestyle, as the local populace is generally welcoming towards newcomers.
    

2. Hub of Asia & The Gate of China
   Hong Kong is strategically positioned in Asia, allowing businesses to leverage the vast opportunities available in the Guangdong-Hong Kong-Macao Bay Area and beyond.
   
   With all major markets in Asia located within a four-hour flight, it is evident why over 9,000 enterprises have chosen Hong Kong as their base. Many of these organizations have established their strategic operations, including sales, research and development (R&D), distribution, regional headquarters, and corporate treasury centres in the city. More than 100 airlines facilitate efficient travel to 190 destinations from Hong Kong, while half of the global population can be accessed within a five-hour flight.
   
   As a prominent international financial center, Hong Kong benefits from an independent legal framework, adherence to the rule of law, unrestricted flow of information and capital, and a robust regulatory environment, positioning it favorably to assist businesses in capitalizing on the Belt and Road Initiative.
   
   The Guangdong-Hong Kong-Macao Bay Area (GBA) aims to foster economic integration by uniting the strengths of over ten cities in the region to form a world-class city cluster. Hong Kong is poised to play a pivotal role in enhancing the international competitiveness of this cluster, making it an optimal location for businesses to take advantage of the opportunities it presents.
   
   Additionally, Hong Kong's free trade policy is a significant advantage for businesses. The city's status as a free port, coupled with streamlined customs procedures, facilitates smoother operations for enterprises.
    

3. Hong Kong Legal System
   The legal framework of the Hong Kong Special Administrative Region (HKSAR) is founded on the principle of the rule of law and judicial independence. This framework is established by the Basic Law, which was enacted by the National People’s Congress of the People’s Republic of China (PRC) in alignment with Article 31 of the PRC Constitution. In accordance with the principle of 'one country, two systems', the HKSAR maintains a legal system distinct from that of Mainland China, rooted in common law and augmented by statutory provisions. All current legislation applicable in the HKSAR can be accessed through the Hong Kong e-Legislation website. The Legislative Council serves as the legislature of the Hong Kong Special Administrative Region (HKSAR), with the Basic Law outlining the precise procedures for its formation and the voting processes for bills and motions. According to the Basic Law, the Legislative Council is tasked with lawmaking, budget approval, oversight of public expenditure, and general monitoring of government activities.The Judiciary is tasked with upholding justice in Hong Kong, addressing all criminal prosecutions and civil disputes. It operates independently from both the executive branch and the legislature.
    

4. International Financial Centre
   Hong Kong has established itself as the premier financial center in the region. It boasts a highly transparent and robust regulatory framework for various financial service sectors, including banking, securities and futures, insurance, and retirement plans. These sectors comply with the highest global standards and practices, instilling confidence in those seeking to engage in business within Hong Kong.
   
   Additionally, the city hosts the largest offshore hub for Renminbi settlement globally. Businesses can readily access a diverse range of Renminbi services provided by banks and financial institutions.
   
   The introduction of Stock Connect and Bond Connect in Hong Kong has granted investors direct access to Mainland China, further solidifying the city’s reputation as an international financial hub. Relevant authorities are accelerating the rollout of the Wealth Management Connect, which will enable residents of Hong Kong, Macao, and nine cities in Guangdong Province to engage in cross-border investments in wealth management products offered by banks within the Guangdong-Hong Kong-Macao Greater Bay Area.
   
   To date, the Hong Kong Monetary Authority has issued digital bank licenses to eight digital banks, all of which are now operational. Furthermore, the Insurance Authority has granted authorizations to four virtual insurers.
    

5. Open Business Environment
   Hong Kong has preserved its distinct currency, political framework, and legal systems. This autonomy has enabled the city to thrive as a global business hub while reaping the advantages of unparalleled access to opportunities within Mainland China.
   
   The advantages of the One Country, Two Systems principle include:
   - No foreign ownership limitations
   - English and Chinese recognized as official languages, with English being the preferred language for business and contracts
   - Unrestricted movement of capital, talent, goods, and information
   - Independent engagement in international forums
   
   Recognized as one of the most competitive economies globally, Hong Kong has achieved a notable ranking. According to the International Institute for Management Development (IMD) World Competitive Yearbook 2024, Hong Kong is positioned 5th among 67 economies.
    

6. Low & Simple Tax System
   Hong Kong's taxation framework is recognized for its straightforwardness, clarity, and competitive nature. The city levies merely three direct taxes, while providing an array of substantial allowances and deductions that can greatly diminish the taxable income
   
   There are ONLY 3 types of taxes in Hong Kong:
   - Income tax or salary tax (between 2% - 17%)
   - Profits tax (for corporations tax is between 8.25% - 16.5%)
   - Property tax (15%). There is no separate real estate tax / tax on property sales in Hong Kong.
   
   Tax advantages in Hong Kong
   - No sales tax or VAT
   - No withholding tax on dividends and interest
   - No capital gains tax or tax on capital gains
   - No tax on dividends
   - No estate tax
   - Free Trade Port. Hong Kong does not apply tax on import and/or export. The free trade port attracts companies to operate and engage in international trade.
    

7. Low Crime Rate
   Hong Kong is recognized as one of the safest cities globally. In 2021, the crime rate in Hong Kong was recorded at 0.31, in stark contrast to Turkiye, where the crime rate for the same year was 2.52. The city benefits from a robust legal framework that ensures the enforcement of laws effectively. This includes a substantial professional police force, stringent firearm regulations, strict limitations on drug use, a legal drinking age of 18, efficient measures against cross-border crime and illegal immigration, anti-corruption initiatives, and a thorough anti-terrorism legislation.
    

8. International Renowned Education
   Hong Kong features a comprehensive educational system characterized by esteemed universities, outstanding research facilities, and a wide range of high-quality foundational education. The region consistently achieves high rankings in various global evaluations of teaching and learning standards. Its higher education sector is both international in scope and diverse, with Hong Kong being the only city to host five universities listed among the top 100 worldwide, and it ranks fourth in the world for educational competitiveness. The Government is committed to establishing Hong Kong as a global education centre and a fertile ground for nurturing future talents.
   
   In terms of the educational structure, kindergartens in Hong Kong serve children aged three to six years. Nonprofit kindergartens that are part of the Kindergarten Education Scheme receive direct financial assistance from the Government.
   
   The public education system primarily consists of six years of primary education followed by six years of secondary education. This includes government-run schools, as well as aided and caput schools, which are mainly operated by religious, charitable, or clan organizations and are fully funded by the Government. Additionally, there are Direct Subsidy Scheme (DSS) schools that can charge tuition fees while still receiving government support based on student enrollment, along with self-financed private and international schools that provide parents with alternative educational choices.
   
   Hong Kong hosts 54 international schools, including one specialized institution, offering a variety of non-local curricula from countries such as Australia, Canada, France, Germany, Japan, Korea, Singapore, the United Kingdom, and the United States, in addition to the International Baccalaureate program.
   
   The Government is dedicated to providing equitable access to educational services for Non-Chinese Speaking (NCS) students. This commitment ensures that all eligible children, regardless of their racial background, can gain admission to schools. The Government actively advocates for and supports this initiative.
    

9. World Class Healthcare
   Statista's 2023 Health and Health Systems ranking positions Hong Kong at 12th globally, based on its health index score. Additionally, the World Health Organization (WHO) has ranked Hong Kong's healthcare system as the 19th best in the world as of 2023.
   
   Among the top 20 in the WHO ranking, three Asian countries are represented, with Japan and Taiwan occupying the 2nd and 20th positions, respectively. This indicates that Asian nations exhibit some of the most efficient healthcare systems globally, with healthcare costs notably lower than those in several major countries.
   
   In Hong Kong, healthcare services are delivered through both the private sector and a government-funded public sector. The Department of Health is responsible for overseeing healthcare policies and public medical services within the city. The Hospital Authority (HA) governs all public hospitals and health institutions, tasked with providing quality and affordable healthcare services to residents. This is accomplished through a network of 43 public hospitals, 49 specialist clinics, and 74 general outpatient clinics.
   
   Residents of Hong Kong have the option to visit private general practitioners for routine illnesses, consult private specialists for more comprehensive health assessments, or utilize public hospitals and clinics for their healthcare needs. 
    

10. Efficient Public Transportation
    Private vehicle ownership is not a necessity in Hong Kong. The metro system, which has been in operation since 1979, continues to expand its network to connect with Mainland China. Trains typically arrive every three minutes, ensuring a high frequency of service. Additionally, buses, mini-buses, light rail, and trams effectively serve the majority of the city. Taxis and ride-hailing services are also cost-effective options. The efficiency of the transportation system results in minimal delays. A study by the Oliver Wyman Forum and the University of California Berkeley’s Institute of Transportation Studies identified Hong Kong as possessing the most outstanding public transport system globally.
    
    In addition to local public transport, Hong Kong is linked to Mainland China via high-speed rail. Approximately 188 pairs of high-speed trains operate daily from the West Kowloon Railway Station to various destinations in Mainland China, including over 158 pairs for short-distance travel to and from Guangzhou, Shenzhen, and Dongguan, as well as more than 30 pairs for long-distance journeys to and from major cities such as Beijing and Shanghai. The high-speed train service is known for its reliability, punctuality, affordability, and is widely utilized as a mode of transportation, aside from air travel, within Mainland China.