Doing Business in Hong Kong 2017

AN INTRODUCTION TO DOING BUSINESS IN HONG KONG 2017

The People’s Republic of China regained sovereignty over Hong Kong from Britain in 1997, from

which point it has been a Special Administrative Region (SAR) of the country. However, the way

in which the city is governed is still fundamentally different from the Chinese mainland – a fact

that is reflected in its slogan of “One Country, Two Systems”. Hong Kong is largely autonomous

from China, and foreign companies will quickly discover that the rules of doing business in the

mainland simply do not apply in Hong Kong, and vice versa.

For this reason, Hong Kong has long held a reputation as a popular “gateway” to invest in

China. Its geographical proximity to the mainland, double taxation agreement (DTA) network,

modern banking system and transparent legal regime have made it an ideal location for foreign

businesses to easily operate in. While the Foreign Account Tax Compliance Act (FATCA) has

stoked fears that this position may soon change – primarily because the act has caused some

Hong Kong banks to turn away American corporations and individuals – Hong Kong remains

the biggest source of foreign direct investment (FDI) into China, making up US$78.26 billion

of a total US$107.25 billion from January to November 2016.

This publication, designed to introduce the fundamentals of doing business in Hong Kong, was

created at the beginning of 2017 using the most up-to-date information at the time. It was

compiled by Dezan Shira & Associates, a specialist foreign direct investment practice that

provides corporate establishment, business advisory, tax advisory and compliance, accounting,

payroll, due diligence and financial review services to multinationals investing in emerging Asia.

Since its establishment in 1992, Dezan Shira & Associates has grown into one of Asia’s most

versatile full-service consultancies with operational offices across China, Hong Kong, India,

Singapore and Vietnam, partnership offices in Indonesia, Malaysia, the Philippines and Thailand,

as well as liaison offices in Germany, Italy and the United States. Dezan Shira & Associates’

experienced business professionals are committed to improving the understanding and

transparency of investing in emerging Asia.

Preface

ALBERTO VETTORETTI

Managing Partner

Dezan Shira & Associates

CONTACT

Dezan Shira & Associates