Hong Kong has become a global hub for international business, especially in the IT sector. What attracts global companies to Hong Kong, and how does it support business diversity? In this article, we will explore these questions in detail.
Status of Hong Kong in Ukraine and Poland
Let’s start with the most exciting part – debunking myths and misunderstandings.
Although many perceive Hong Kong as an offshore jurisdiction (often advertised as such) due to its tax advantages, according to the laws of Ukraine and Poland, Hong Kong is not listed among traditional offshore territories. This is important for understanding international investors and companies aiming to conduct business globally with high transparency.
According to official documents, such as the “List of Offshore Zones” from the Ministry of Finance of Ukraine and similar documents in EU countries, Hong Kong is NOT listed as an offshore zone.
Hong Kong’s recognition as a prestigious and legitimate jurisdiction, rather than an offshore one, plays a key role due to its geopolitical position and the “One Country, Two Systems” policy*. This unique model provides additional guarantees for investors and businesses looking to expand their activities in Asia while maintaining access to capital and international markets.
IT Business in Hong Kong
Hong Kong is actively developing as an international technology hub, attracting IT companies worldwide. This has been made possible thanks to its highly developed infrastructure and favorable investment climate. As of 2024, more than 1,800 tech companies are registered in Hong Kong.
State of the Tech Market in Hong Kong 2024
Hong Kong has one of the world’s fastest and most reliable internet infrastructures, with high bandwidth and low latency. This provides optimal conditions for the development of IT services, cloud technologies, and digital commerce, making the region ideal for tech startups and large tech corporations.
Hong Kong is known for its openness to international investments. The region offers foreign investors various tax benefits, investment incentives, and legal support, which helps attract capital to the IT sector. According to an InvestHK report, the amount of investment in the tech sector in Hong Kong continues to grow, attracting funding from various countries.
Hong Kong leverages its geographical and economic advantages to create a robust global innovation ecosystem. It serves as a bridge between China and the rest of the world, further integrating Eastern and Western technological innovations and driving global tech trends.
Data from the Hong Kong Science and Technology Parks Corporation confirms that the region continues to actively work on attracting tech companies by investing in the creation of advanced research institutes and innovation incubators. These efforts stimulate the high-tech sector’s growth, as evidenced by regular analytical reports.
Is Hong Kong Suitable for Your Business?
Hong Kong is ideal for IT companies, service companies, fintech startups, and e-commerce businesses. Its appeal lies in its strategic location, high business culture, and liberal tax policies.
Many Ukrainian and European companies choose Hong Kong because of its “One Country, Two Systems” policy, which provides a unique combination of strict governance and great economic freedom. This allows entrepreneurs to conduct business according to international standards while taking advantage of proximity to the Chinese market. The “One Country, Two Systems” policy guarantees Hong Kong a high degree of autonomy until 2047. This creates a stable and predictable environment for international investments and business operations while maintaining close economic ties with China.
According to the latest “Doing Business in Hong Kong 2023” report, Hong Kong remains one of the most accessible jurisdictions for doing business. The region is known for having one of the lowest tax rates in the world, high transparency, and efficient government services, making it attractive for companies looking to globalize their activities.
As of June 2024, 14,931 companies were founded by non-residents in Hong Kong. On average, about 55 new businesses are established monthly in the jurisdiction.
To understand whether this jurisdiction suits your activity area, we recommend consulting with specialists (and not registering “because it’s trendy”).
Hong Kong remains an attractive place for registering companies from various economic sectors, including IT, finance, trade, and services. Its unique geopolitical position, favorable tax system, and high business infrastructure make Hong Kong an ideal choice for companies looking to expand their presence in Asia and beyond.
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*Under the “One Country, Two Systems” policy, Hong Kong enjoys a high degree of autonomy. It has its own Basic Law, its own currency (the Hong Kong Dollar), its own immigration policy, and an independent judicial system that uses laws based on English law. This unique structure promotes foreign investment and international business activities.
