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 to 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 avoidance (DTA) network, modern banking system and transparent legal regime have made it an ideal location for foreign businesses to easily operate. 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 81.2 billion of the country’s total 119.5 billion FDI in 2014.
An Introduction to Doing Business in Hong Kong 2016 is designed to introduce the fundamentals of investing in Hong Kong. Compiled by the professionals at Dezan Shira & Associates, this comprehensive guide is ideal not only for businesses looking to enter the Hong Kong market, but also for companies that already have a presence here and want to keep up-to-date with the most recent and relevant policy changes.
An Introduction to Doing Business in Hong Kong 2016 covers the following:
- Establishing and Running a Business
- Tax, Audit and Accounting
- Human Resources and Payroll
- Industry Focus
Within these chapters, we discuss a range of different topics that affect doing business in Hong Kong, including investment models, key taxes applicable for foreign companies, and employment contracts.