Why I think it’s the perfect time to build a startup in Hong Kong

Photo credit: JC Gellidon.

If you want to start a startup and enter the Asian market, Hong Kong is one of the best choices, as the city is famous for its business-friendly environment. Here’s why I think you should seriously consider starting up in the city in 2017.

Initial benefits

Fair legal system and low tax rates

Hong Kong has an independent and fair legal system and is a free market with low tax rates. If you submit your application for business registration, for example, your business registration certificate will be issued in about 30 minutes over the counter.

The maximum tax rate to incorporate in Hong Kong is also just 16.5 percent (but this does not include deductible items such as company losses, registration fees for patents, etc.). This is way lower than in Switzerland (24 percent),  China (25 percent),  the UK (31 percent), and the US (39 percent).

Good accessibility

In terms of geography, Hong Kong enjoys a central location in Asia. Most major Asian cities are within a three-hour flight from Hong Kong, and you will be able to go to any Chinese city via the Guangzhou–Shenzhen–Hong Kong Express Rail Link in the coming future. With this railway line, it’s possible to make a round trip within a day.

Hardware startups love it

Transportation between China and Hong Kong is extremely convenient (it takes about two hours to travel from Kowloon to Guangzhou). Hardware startups stationed in Hong Kong can have the benefits of living in the city while easily accessing Shenzhen for hardware sourcing.

Three hundred hardware startups gathered at Startup Launchpad, a hardware startup event in Asia. Photo credit: Global Sources.

The fast-growing startup ecosystem

There were 1,926 startups in Hong Kong last year. That’s a 24 percent increase from 1,558 in 2015. The number of co-working spaces has also increased—Naked Hub, WeWork, and other co-working companies have entered Hong Kong this year.

What’s more, 35 percent of founders in the city come from overseas and China. The diversity here gives you better insights and opportunities.

You are not alone 

Startups serving startups

Still, there are sad facts