's Survey Reveals Key Factors Driving the Growth in Hong Kong Company Formations

Share Article has identified (a) ease of company formation, (b) low taxes and (c) access to China as the primary motives behind the growth in Hong Kong company incorporations by foreigners. The results are based on a survey conducted by the site and an analysis of its site traffic.

Hong Kong Company Formation

Entrepreneurs can fast-track their business setup and expansion plans in the Asian region by choosing to incorporate a company in Hong Kong. Based on our analysis, we reckon that Hong Kong is going to remain a popular destination for company set up.

Based on the analysis of a survey and its web analytics data, has identified the top three likely reasons why small business owners choose to incorporate a company in Hong Kong: (a) ease of company setup, (b) low tax system and (c) preferential access to the mainland China market. conducted an online survey of its site visitors from January to April 2010 to evaluate its website visitor profile and their reasons for considering Hong Kong company formation. Majority of the site visitors (79%) were potential business entrepreneurs or business owners, while a small percentage comprised consultants and managerial staff. Most of the visitors were looking for information to either start a new business or expand their existing business in Hong Kong. Respondents were also asked to rate their primary reasons for choosing Hong Kong incorporation. The survey results show that ease of company set up received the highest vote (54%), followed by low taxes (33%) and access to China (13%).

During the period from January to April 2010, the website experienced a 80% increase in visitor traffic, compared to the corresponding period for the previous year. The site recorded an increase in both returning visitors as well as new visitors. The number of page view counts and unique page views reveal that visitors are exploring topics such as 'Hong Kong Company Registration', 'Hong Kong Tax System', 'Advantages of Setting up a New Business in Hong Kong', etc. Furthermore, referral data that pinpoint keywords or key phrases being used by searchers reveal that the most popular key phrases are 'Hong Kong company set up requirements', 'Hong Kong company registration timeline and procedure', 'Hong Kong Corporate Tax Benefits', and 'Hong Kong CEPA'. According to Ms. Jacqueline Low, the Director of Corporate Services at Janus Corporate Solutions - the company that runs the site, "We find that more than 60% of our site visitors are multi page repeat visitors who tend to visit multiple pages on Hong Kong company set up. Such visitors tend to visit the site often and the average time they spend on each page is usually more than six minutes."

The increased interest in company formation appears to be supported by the new data released by the government. Statistics released by the Hong Kong Company Registry show that there has been a steady increase in the number of Hong Kong companies that were set up in April 2010 (13,250) as compared to January 2010 (10,121).

A study of Hong Kong company registration requirements by shows that a Hong Kong company can be setup with one director (individual or company, local resident or foreigner), one shareholder (100% foreign shareholding is permissible), a company secretary, paid-up capital of HK$1.00, authorized capital of HK$10,000 and a registered address. According to Ms. Low, "It takes only 4-7 days to setup a company in Hong Kong and unlike most other countries in the region there is no red-tape or bureaucracy involved. The Hong Kong company formation requirements are minimal with no restrictions on foreign ownership. Moreover, with efforts underway to streamline Hong Kong's company incorporation process, entrepreneurs will soon benefit from one-day company incorporation in Hong Kong. It's not surprising that most visitors to our website are exploring Hong Kong company formation topics."

The Hong Kong-focused business information portal cited Hong Kong's simple and low tax system as another distinct feature behind Hong Kong's attractiveness for doing business. Hong Kong's tax system ensures a low tax burden to small business owners who choose to setup a company in Hong Kong. According to, Hong Kong's corporate tax rate of 16.5% is the lowest in the Asia-Pacific region. Other notable features are no VAT / GST, no capital gains tax, no withholding tax on dividends or interest, no inheritance tax / estate duty, no foreign exchange controls, no imputation system for dividends, and no taxation on foreign sourced income. "We find that Hong Kong has set the benchmark as far as taxes are concerned. For global minded entrepreneurs it's all about maximizing profits while minimizing costs. The potential for entrepreneurs to benefit from Hong Kong's tax system is huge, and that's putting it mildly. Bearing testimony to this is our taxation page view counts. We find most of our visitors referring to our pages on 'Hong Kong Tax Rates', 'Hong Kong Corporate Income Tax Guide' and 'Hong Kong Tax Calculator'," said Ms. Low.

The third benefit to accrue to Hong Kong companies is preferential access to the mainland China market under CEPA (The Mainland and Hong Kong Closer Economic Partnership Arrangement) - a bilateral Free Trade Agreement that ensures zero tariff on the export of qualifying Hong Kong made products to mainland China; easier and faster access to the mainland for qualifying Hong Kong based service providers; and trade and investment facilitation in certain areas. points out that one of its most popular key phrase search is 'Hong Kong-China CEPA'. "After the announcement of recent enhanced trade and investment facilitation measures and relaxation of market access conditions between Hong Kong and the mainland, more visitors are searching for information on CEPA. Apart from the ease of doing business, taxes and proximity to the mainland, business entrepreneurs can benefit from political and economic stability, an efficient legal system and a talented workforce. Entrepreneurs can fast-track their business setup and expansion plans in the Asian region by choosing to incorporate a company in Hong Kong. Based on our analysis, we reckon that Hong Kong is going to remain a popular destination for company set up over the next few months." added Ms. Low.

For more information about company formation and taxes in Hong Kong, refer to
Company Formation:
Corporate Taxes:


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