Hong Kong

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DOING BUSINESS

 


Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

Hong-Kong is open to foreign investments. Only certain sectors, such as communications or others considered as public interest, are closed to foreign investors. The Hong-Kong region's government encourages foreign investments especially projects aimed at introducing new or improved products and services. However, there are no direct allowances for foreign investments, since, according to the government, Hong-Kong already offers very attractive advantages, such as its infrastructures, its tax system, a skilled labour force and a strategic position.
Invest Hong-Kong provides assistance to corporations looking for direct investment opportunities in Hong-Kong.

 

Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Sole Proprietorship 1 person No minimum capital. The sole entrepreneur is liable for the company's debts on his personal assets. HK$ 2,250 for the annual registration. No
Company Limited by Guarantee Minimum 2 partners. No minimum capital. Liability is limited to the amount of contributions forming the assets of the company. HK$ 1,000 + HK$ 6 for every additional HK$ 1,000. (+ HK$ 1,150 for the annual registration). Yes if the company is quoted on the stock exchange.
Unlimited Company. Minimum 2 partners. No minimum capital. Liability is unlimited and several. HK$ 1,000 + HK$ 6 for every additional HK$ 1,000. (+ HK$ 1,150 for the annual registration). Yes if the company is quoted on the stock exchange.
Private Limited Company. Minimum 2 partners.
Maximum 50 partners.
In practice, minimum HK$ 10,000. Liability is limited to the amount contributed. HK$ 1,000 + HK$ 6 for every additional HK$ 1,000. (+ HK$ 1,150 for the annual registration). No
Public Limited Company. Minimum 7 partners. No minimum capital. Liability is limited to the amount contributed. HK$ 1,000 + HK$ 6 for every additional HK$ 1,000. (+ HK$ 1,150 for the annual registration). Yes
General Partnership minimum 20 partners. No minimum capital. Liability is unlimited for the association's debts and obligations. HK$ 2,250 for the annual registration. No
Limited Partnership. Mminimum 20 partners. No minimum capital. At least, a partner must have an unlimited liability. Liability of other partners is limited to the amount contributed. HK$ 2,250 for the annual registration. No

Registration and licensing procedures
Registration of a company in Hong-Kong is rather simple. There are not many procedures.

Foreign exchange control
Currency exchange controls are rather flexible in Hong-Kong. Hong-Kong dollar is freely convertible. Repatriation of capital is authorised.

Regulations concerning equity investment
A majority holding interest in the capital is legal, except in certain sectors.  


Foreign Direct Investment inflows in Hong Kong

FDI inflows 2003 2004 2005 World rank (*)
2005
FDI inflows (USD million) 13 624 34 032 35 897 3/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

 

Last modified in 2006 - ongoing update
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