I have happily been a board member of Finland – Hong Kong Trade Association for a couple of years now. Though my expertise is purely concentrated on Mainland China, I cannot avoid the benefits of Hong Kong when entering the Chinese – or wider Asian – markets. Few of the key factors that speaks for Hong Kong:
1. Hong Kong is very centrally located in Asia. It has 4 hour access to all leading markets to Asia and 5 hours from half the world’s population. Transport connections are very good.
2. Hong Kong has low and simple tax system. They have 3 direct taxes (profits, salaries & property) and they also provide deductions.
3. For international company it is relatively easy to operate in Hong Kong as the system is very transparent and efficient.
4. People in Hong Kong are highly educated and skilled.
5. For expats Hong Kong provides safe and inspiring environment to live with lots of activities, sceneries and delicious food.
Some companies seem to prefer to have a holding company in Hong Kong. Costs for setting up a company in Hong Kong are much lower than in Mainland China. Yet, the procedures are much simplier and transparent. However, Mainland Chinese customers may expect the company presence in Mainland China. This is a valid point. Therefore the company must build their entry strategy to Asian market by deciding what they want to achieve there.
Hey, and Mainland China is also very interesting, amusing and beautiful country to live in! 😉
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