Business in Hong Kong, Economy, Foreign Trade. Asia economic center.

Summary:

Hong Kong has a prime location at the geographical and economic center of Asia. Business executives in Hong Kong have fast and easy access to all the major markets in the Asia Pacific region. This central position is one of the key reasons for the city's popularity as a location for regional operations.

Located on the southeast coast of Mainland China, Hong Kong has the vast hinterland which, with 1.3 billion people, is the largest single market in the world. Corporate executives can travel back and forth to Beijing, Shanghai and other major Chinese cities in a single day while making their home in Hong Kong.

Hong Kong is the largest foreign investor in Mainland China, accounting for about 44% of the national total with a cumulative value of US$233 billion in June 2004.

More than 100 mainland companies are listed on the Stock Exchange of Hong Kong. At least 1,800 Mainland-backed enterprises are registered in Hong Kong. There are 26 Chinese banks and seven representative offices operating in Hong Kong.

Free trade is the life-blood of Hong Kong. As a result, it is one of the most open, externally-orientated economies in the world. The Heritage Foundation/Wall Street Journal from US and Cato and Fraser Institutes of Canada have consistently rated it as the world's freest economy.

The Greater Pearl River Delta region, which consists of the Hong Kong Special Administrative Region, the Macao Special Administrative Region, and the Pearl River Delta Economic Development Zone portion of Guangdong Province, has emerged as one of the world's most dynamic economic regions.

The Closer Economic Partnership Arrangement (CEPA), which took effect at the beginning of 2004, provides Hong Kong with additional and exclusive Mainland market access benefits. Thousands of international companies involved in China trade have chosen to establish their beachhead in Hong Kong.

Every investor has a wide range of business vehicles to choose from when doing business in Hong Kong. All enterprises are subject to the same rules. Requirements for establishing a business in Hong Kong are famous for being simple and straight forward. You can set up a new company in six days and it will cost you only a few hundred US dollars.

The type of structure that is most appropriate will depend on tax issues, strategic plans, financial aspects, willingness to take on ongoing obligations and much more. Because of the complex and long term impact of this decision, it is advisable to seek professional advice.

The most common forms of business vehicles foreign investors choose are:

• Private limited companies
• Branch offices of overseas companies
• Rep offices
• Partnerships / sole proprietorships
• Joint ventures

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Master in Asia business - Master in Emerging Markets

Business, Hong Kong, Economy, Foreign, Trade, Doing Business, Gateway, China, Asia economic, Closer, Economic, Partnership, Arrangement, center, Master, International Business