Hong Kong has been the corporate headquarter for many British and Chinese corporations. Its business-friendly and liberal trade policies have made it the most developed city in the world with a very high per capita income. Its long history of entrepreneurism has also made it a global business powerhouse.
If you mentioned any big global brand today, such as Cathay Dragon or Samsung, you will realize that it is present in Hong Kong. Most of the leading businesses claim that despite the large market and the support from the Hong Kong administration, nothing during the startup phase was easy.
However, proper planning allowed them to grow into large brands. A closer look at the Hong Kong market will help you understand why the companies grew into global giants and the strategies they used.
Important Facts about Hong Kong
To help you understand why almost every brand is heading to Hong Kong, we have gathered the important economic numbers you should understand. The numbers will also help you develop the right growth projections after registering your company in Hong Kong. Here are some of the facts to keep in mind.
- The free-market economy has free-port trade and well-established infrastructure.
- The economy is managed through a positive non-interventional model that promotes free trade.
- The economic strength of Hong Kong largely originates from the strong banking system.
- The year 2019 estimates show that Hong Kong has a population of 7.5 million people.
- In 2019, the nominal GDP of Hong Kong exceeded $372.989 billion.
- Hong Kong’s main industries are textiles, banking, clothing, tourism, shipping, and electronics.
In addition to the above facts and numbers, Hong Kong has made it easier for investors to expand their businesses to the neighboring markets. Here are some of the strategies top brands in the country have used to grow into big multinational companies. You can also use them after incorporating your company in Hong Kong to see it grow.
- Capitalizing the Bilateral Trade Agreements
If you are planning to establish a global company, you should intensify its presence in Hong Kong, the Far East countries, and other regions. Hong Kong has signed bilateral agreements with more than 40 countries. A quick example, it has signed free trade agreements with Chile, New Zealand, the Association of Southern Asian Nations (ASEAN), and Member States of the European Free Trade Association (EFTA).
The agreements act as a door to other jurisdictions and your business will expand faster. For example, you can import your health and fitness products or any other type of products to Hong Kong and the European Union countries. Proper marketing and the use of the right distribution channels will allow your business to grow faster.
- Using Hong Kong to Penetrate the Chinese Markets
Hong Kong is part of the People’s Republic of China. Therefore, China should remain in your mind when working to expand your business to Hong Kong. A large percentage of businesses that operate in this city can access Mainland China easily and exploit the large market. The market with over 1.3 billion people offers endless opportunities.
The process of crafting your business expansion plan should start immediately after you open your company in Hong Kong. First, your company has to demonstrate tax substance to eliminate chances of double taxation. Hong Kong offers awesome growth opportunities for countries that want to import products from China and export them to other parts of the world.
Hong Kong never disappoints. To exploit the many opportunities the offshore jurisdiction offers, you have to work with an agency of experts. An agency will help you register your company, identify the global opportunities, and comply with the country’s laws. It is the right time to open your offshore company.