Why Hong Kong is the Gateway to Asia: A Strategic Guide to Setting Up Your Business for Global Expansion

In the modern global economy, businesses are increasingly looking eastward for growth. Asia, with its rapidly expanding middle class, robust digital economy, and manufacturing dominance, presents a wealth of opportunities. Among the many entry points into Asia, Hong Kong stands tall as a leading gateway — a dynamic international city strategically positioned for success. If you're planning to expand globally, set up a business in Hong Kong to unlock unparalleled access to Asia.

This blog explores why Hong Kong remains the preferred choice for global entrepreneurs, how to start a company in Hong Kong, the process to incorporate HK company structures, and how a startup company in Hong Kong can thrive in a business-friendly and innovation-driven ecosystem.

Why Choose Hong Kong? A Strategic Advantage for Global Businesses

1. Strategic Location and Gateway to China

Hong Kong's location is more than just convenient — it's pivotal. Situated at the crossroads of Asia, it offers direct access to the world's second-largest economy, Mainland China. Through the Greater Bay Area (GBA) initiative, Hong Kong is tightly integrated with the high-growth cities of Southern China, enabling businesses to tap into a consumer base of over 86 million.

Official reference: Government factsheet on the GBA (BrandHK) – confirms population and scope of the 9+2 city cluster: brandhk.gov.hk GBA factsheet (PDF). Default

Furthermore, Hong Kong International Airport is consistently the world’s busiest for international air cargo, and the city operates one of the world’s major ports — giving you unmatched logistics connectivity for both imports and exports.

Official references: Airport Authority cargo champion update and Marine Department port statistics:

• Hong Kong International Airport – cargo update (see 2024/2025 cargo highlights). Hong Kong International Airport

• Marine Department – Port of Hong Kong statistics. Hong Kong International Airport

2. Pro-Business Government Policies

One of the biggest advantages for those looking to set up business in Hong Kong is the government's consistently pro-business stance. There are:

• No restrictions on foreign ownership

• No exchange controls

• Minimal bureaucratic red tape

On exchange controls and capital freedom, Hong Kong’s Basic Law (Article 112) explicitly guarantees a freely convertible currency and free flow of capital.

Official reference: The Basic Law – Article 112. basiclaw.gov.hk

3. World-Class Financial Hub

As one of the world's top financial centres, Hong Kong is home to over 70 of the world’s largest 100 banks, with deep capital markets, extensive trade finance, and a robust, well-regulated banking system. The Hong Kong dollar operates under the Linked Exchange Rate System with a transparent currency board framework.

Official references:

• HKMA – Banking Sector overview (notes “over 70 of the largest 100 banks”). Hong Kong Monetary Authority

• HKMA – Linked Exchange Rate System (system overview). Hong Kong Monetary Authority

4. Transparent Legal System Based on English Common Law

Unlike many jurisdictions in the region, Hong Kong operates under a common law system with strong contract enforcement and IP protection — essential for companies planning long-term regional operations.

Official reference: Hong Kong Intellectual Property Department resources: ipd.gov.hk.

How to Start a Company in Hong Kong?

Setting up a business in Hong Kong is straightforward and efficient. Here's a step-by-step guide to help you begin (aligned with your service page where applicable):

Step 1: Decide on a Business Structure

Most foreign investors prefer to start a private company limited by shares. This structure offers limited liability and separate legal personality.

Official reference: Companies Registry “How to register a new company?”: Companies Registry

Step 2: Choose a Company Name

Your company name can be in English, Chinese, or both — but it must not be identical to any existing registered name. You can check name availability via the Companies Registry e-Services.

Step 3: Appoint Directors and Shareholders

To incorporate, Hong Kong requires:

• At least one director (may be non-resident)

• At least one shareholder (individual or corporate)

• A local company secretary (individual ordinarily resident in Hong Kong or a body corporate with a registered office/place of business in Hong Kong)

• A registered office address in Hong Kong

Official references:

• Companies Registry FAQs on directors & company secretary (including the rule that a sole director cannot also be the company secretary): cr.gov.hk – Directors/Secretary FAQ. Companies Registry

• Requirement for a registered office in Hong Kong: Companies Ordinance – Registered office (s.12.126). Companies Registry

Step 4: Register with the Companies Registry

Submit the incorporation documents to the Companies Registry. For a company limited by shares, this includes:

• Form NNC1 (incorporation form)

• Articles of Association (you may adopt the model articles)

• IRBR1 (Notice to Business Registration Office)

Processing times: For straightforward cases filed electronically, electronic Certificates (Certificate of Incorporation + Business Registration Certificate) are normally issued within 1 hour. For hard-copy submissions, certificates are normally issued within 4 working days.

Official reference (documents & timelines): Companies Registry

Step 5: Apply for a Business Registration Certificate

Update (correction): For local companies, Business Registration is handled at the same time as incorporation via the One-stop Company and Business Registration Service — you don’t need a separate post-incorporation BR application. You’ll receive the Business Registration Certificate together with the Certificate of Incorporation.

Official references:

• IRD one-stop overview (forms & workflow): Inland Revenue Department

Current BR fee (2025/26): The 1-year Business Registration Certificate fee is HK$2,200 (levy currently waived); 3-year totals listed in the official table.

Official reference: IRD – Business Registration Fee & Levy Table (PDF). Inland Revenue Department

Supporting a Startup Company in Hong Kong

1. Access to Capital

Whether you're in fintech, biotech, or e-commerce, you’ll find funding opportunities from angels, VCs, and government-backed schemes such as:

• Cyberport Creative Micro Fund (CMF) – seed funding & incubation: cyberport.hk/CMF

• Innovation and Technology Fund (ITF) – R&D support: itf.gov.hk

• SME Export Marketing Fund (EMF) – market development: TID – EMF. tid.gov.hk

2. World-Class Incubators and Accelerators

A startup company in Hong Kong can tap a mature ecosystem, including Betatron and Brinc (private accelerators), and InvestHK’s StartmeupHK initiative (ecosystem curation, Global Fast Track, festival).

Official references:

• StartmeupHK by InvestHK: StartmeupHK

• Global Fast Track (InvestHK): info.gov.hk – GFT 2025 announcement

3. Highly Skilled and Multilingual Talent Pool

Hong Kong’s universities and open, international workforce provide bilingual (often trilingual) talent across tech, finance, and business. (General information point; no single statutory source.)

Tax Advantages of Doing Business in Hong Kong

• Two-tiered Profits Tax (corporations): 8.25% on the first HK$2 million of assessable profits; 16.5% on the remainder.

  Official reference: IRD – Profits Tax

• No VAT/GST or sales tax; no capital gains tax; no withholding tax on dividends and interest.

  Official reference: HKSAR Financial Services & the Treasury Bureau – Prevailing Tax Policy: fstb.gov.hk – Tax Policy. Treasury Bureau

• Extensive tax treaty network: Hong Kong has 50+ Comprehensive Double Taxation Agreements/Arrangements (CDTAs) signed/concluded.

  Official reference: FSTB listing overview: fstb.gov.hk – CDTAs/Arrangements (latest running total and list maintained by FSTB). Treasury Bureau

• Foreign-sourced income exemption (FSIE) regime: Clarifies tax treatment of certain foreign-sourced disposal gains, interest, dividends, and IP income subject to specified conditions.

  Official reference: IRD – FSIE regime. ipd.gov.hk

Digital Infrastructure and IP Protection

As a smart city, Hong Kong embraces digital transformation with reliable connectivity and business-friendly regulation. Intellectual property is well protected, with clear registration and enforcement frameworks.

Official references:

• IPD – Intellectual Property Department: ipd.gov.hk.

• GovHK – Patents, Trademarks & Designs: gov.hk – Intellectual Property. HSBC Expat

Final Thoughts: Expand Confidently with Mirr Asia

Establishing your presence in Hong Kong is one of the smartest moves you can make for global expansion. Whether you're a startup looking for your first Asian base or a multinational seeking regional headquarters, the city offers unmatched opportunities.

At Mirr Asia, we specialize in helping businesses start a company in Hong Kong with full compliance and strategic foresight. From navigating the Hong Kong corporate registry to helping you incorporate HK company structures efficiently, we provide end-to-end guidance.

Thinking of launching a startup company in Hong Kong? Let Mirr Asia be your trusted partner. Our team offers corporate services, market entry strategies, and operational support — so you can focus on growing your business in Asia's most vibrant gateway.