Bringing your business to Hong Kong presents many advantages whether that be because of the business friendly environment, the financial support or its strategic position giving access to mainland China. Its advances in technology are also very beneficial for fintech startup companies. Hong Kong is still one of the world's top 10 stock exchanges by market capitalization.
In 2021 there were more than 460 fintech companies in Hong Kong, making it a global financial center, promoting innovation and opportunities for many companies. According to Invest Hong Kong’s 2020 startup survey, 26% of startups were started by people from outside the city, suggesting that the country is very attractive for many people from abroad.
Hong Kong is one of the most friendly business environments in the world. There are only 3 types of imposed taxes on direct taxes- profits tax, salaries tax and property tax, and only incomes sourced from Hong Kong are taxable. This taxation scheme which has a low rate and is easy to navigate is one of the reasons why many companies set up their businesses in the area.
Free trade legislation also encourages fintech companies to choose Hong Kong as their business destination. It has established its status as a ‘free port’ due to its simple customs clearance and small amount of products needing to pay duty. Furthermore, Hong Kong has ranked No. 1 in Fraser Institute's Economic Freedom of the World Report 2022. It also remains the most economically-free jurisdiction in the world. It has been striving to improve the business environment and enhance market efficiency and support, allowing the economy to display flexibility, resilience and leverage the advantages of the free market. Their commitment to maintaining an efficient, free, open and fair business environment is once again affirmed.
The Hong Kong Monetary Authority (HKMA) has also built relationships with other areas such as Brazil, Thailand, the UK, Switzerland and more, in an attempt to increase global collaboration. A supportive government also encourages investment into Hong Kong, with many programs and initiatives in place to support startups.
The World Bank has ranked Hong Kong 4th for the ease of doing business. In addition, The Global Innovation Index has also ranked Hong Kong 14th as the world’s most innovative economy. It is also ranked 5th as the most innovative nation among Southeast Asia, East Asia and Oceania. This is due to many factors, including the human capital, infrastructure developments and business sophistication. The country also has a rapidly growing tech startup ecosystem. Tech startups grew by 57% between 2017 and 2020, also employing 10,600 people.
In terms of fintech, there is plenty of talent and professionals on offer. Universities in the area rank 3rd overall worldwide for computer science and IT, and 4th globally for accounting and finance. This talent presents many fintech companies opportunities for expanding to Hong Kong.