Thinking of launching a startup in Hong Kong? (Best tips & Resources)
Are you thinking of launching a startup in the world’s most competitive economy- Hong Kong? If so, I believe that gathering all the information about the economic outlook and economic climate of Hong Kong is pertinent as it will allow you to have plan strategies or realign current ones for your business. Keep on reading this article to get a better understanding so that you can operate your business legally.
Hong Kong Business Environment
Let’s start with the most important thing for your company- Business environment. There is no denying to the fact that a plethora of entrepreneur wants to enter into the business market of Asia. But the million-dollar question is that ‘how are they going to achieve this goal?’ Yes, you know the answer. It’s through Hong Kong. Right! In fact, as per the World Bank’s Doing Business 2019 Report, Hong Kong is ranked fourth globally on the ease of doing business, moving up one place from being fifth last year.
More importantly, Hong Kong is ranked second out of 63 economies as per the yearbook of the International Institute for Management Development (IMD) World Competitive Yearbook 2018. This ranking is just because of Hong Kong’s favorable business environment which allows business managers to set up their business smoothly and legally. Besides the open business economy of Hong Kong, IMD also assessed the economy into other competitiveness factors- economic performance, business efficiency, infrastructure, and government efficiency.
- One Country, Two Systems
Before going ahead with this article, we want to clarify the fundamental law of Hong Kong. Well, the fundamental rule is an embodiment of the doctrines of “One Country, Two Systems.”
Hong Kong is an autonomous territory, which has made its own currency, political and legal systems including the World Trade Organisation. In fact, this is the perfect place for all the business owners which allows them to enjoy the benefits of unrivaled access to the opportunities in Mainland China, and also to continue to flourish or enrich their business in an international business city.
So, if you are still thinking why Hong Kong has incorporated this law in their legal system and what are the benefits of this system for your business, then below are some of the benefits of One Country, Two Systems include:
- English and Chinese as official languages with English the preferred language for business and contracts
- Independent participation in international forums
- No foreign ownership restrictions
- Free movement of capital, talent, goods, and information
Ease of Starting a Business
As a matter of fact, several business people drop the idea of setting up their own business in the market because of the difficulties of launching in a particular place. So, if you are the one who is facing the same situation, then I must say you have chosen the right place for your business.
Well, I am saying this because Hong Kong is a place where One East Asia can leverage all the competitive benefits the territory offers and make use of each and every opportunity to shine. In fact, it’s vibrant, and densely populated urban center is a significant port and global financial hub with a skyscraper-studded skyline.
Moreover, Hong Kong is famed for being a comfortable and secure place in order to set up a company. Business managers can easily open up their business in about two week’s time in Hong Kong. The reason behind the ease of setting up the business in Hong Kong is notable for its excellent infrastructure facilities and business premises.
There is no denying the fact that in some countries, IP protection is not taken seriously. In Hong Kong, however, Intellectual Property protection is made sincerely, with the strict regulations in place.
To be more precise, the city’s intellectual property laws have been developed to reach the highest international standards to create a free and fair business environment. And if you are a foreigner who is willing to set up their business in Hong Kong, then you can also quickly and securely relocate by applying for an appropriate work visa.
Resources Available for HK Startups
No matter what you are thinking, whether you are considering to start a new startup in the freest economy of the world, or looking for Hong Kong startup funding, with the great, robust support system of Hong Kong, and the thriving startup community, you can save plenty of the time for your business. Let’s have a look at a few of the resources available in Hong Kong that you should plan to grow your business.
- Govt Support for new Startups
Well, the support system of the government may not be one of the most exciting parts for your business, but it definitely works when it comes to the city’s startup ecosystem. When you operate your business, you don’t need to worry about government interference. Fortunately, the territory has the most laissez-faire economy in the world. You must be wondering, ‘what is laissez-faire economy?
Well, laissez-faire is an economic system in which the transactions between the private parties are free from government’s interference such as privileges, subsidies, regulations, and tariffs. The disclosure requirements and government controls on the organizations are minimal, except for public limited companies.
For private companies, there are also minimum capitalization requirements. And if you incorporate your company in Hong Kong as a wholly-owned subsidiary, then you are also not required to file for financial statements.
Besides, if you are looking for fundraising for your company, then you can also browse the government websites of Hong Kong and easily figure out an ample number of different funding schemes available for SME’s. From there, you can connect with various investors and get advice on everything from set-up to expansion and maintenance.
- Incubators and Accelerators Programmes
Another great resource to raise your startup funding in Hong Kong is by accelerators and incubators programmes. Do you have any idea about accelerators and incubators plans? Well, accelerators are tailored to offer you the ultimate support on the entrepreneurial path to the success of your company and growing it in the market, whereas, incubators are focused on innovating and developing new ideas and goals for the disruption of the existing company.
And if you would become a part of these popular programs in Hong Kong, I must say you will have great access for your support networks and mentors, which is an excellent resource for getting advice on your small business. Moreover, in Hong Kong, you don’t have to work harder to have a word with the incubators and accelerators.
There is an increasing number of accelerator and incubator programmes in Hong Kong, focusing on different areas. Just pull your socks up and start looking for the people who can help you in raising your startup funding. Here are some of the accelerator and incubator programmes for Hong Kong startup funding. Take a look and see which one fits you best.
- Ablaze
The first and foremost accelerator program that you should know before seeking for fundraising programs is Ablaze. It is a newly launched program by two companies which are in partner Ablaze Idea Lab and New Media Group, and focusing on Hong Kong startup funding.
If you are thinking to venture in industries such as traveling, restaurants, fashion, beauty, and parenting, then this program is best suited for you. Moreover, this program also aims to nurture startups in the online media and consumer marketing segment.
- Cyberport Smart Space
Do you want to enter into the gateway of Mainland China and Asian markets? If yes, then Cyberport smart space community should be on your radar. Well, it is launched by smart-space in order to help the technology startups for entering or growing your business in Mainland China and Asian markets. The working of this community is convenient and flexible.
In fact, this program can also help you in renting ready-built facilities on terms, from 1 to 12 months, for a fixed price. It is running from a state-of-the-art IT platform and an innovative digital community with close to 900 tech companies. What is more, this program also tailored on developing the startups and entrepreneurs primarily in E-Commerce, FinTech, loT Wearables, and Big Data/AI to grow Hong Kong into a “Smart City.”
- Crowdfunding
Once you get a better understanding of the accelerator and incubators programs, the next thing that you should know about is the crowdfunding resources for Hong Kong startup funding. No matter, whether you are going to start a medium-sized or small-sized enterprise, crowdfunding will help you in allowing business professional and entrepreneurs to raise capital through contributions from a larger pool and tap into your networks of family, investors, friends, and other interested parties.
Moreover, if you are hunting for the best ways so that you can validate your business idea, refine your business product and get feedback from potential customers, then it is an excellent opportunity for you. Before looking for startup funding, you should know about some crowdfunding platforms in Hong Kong.
- FringeBacker
Do you want to have a crowdfunding platform in both Chinese and English for your business? If so, FringeBacker is a bilingual crowdfunding platform that is offering you a range of options for online fundraising. It is a podium which pays attention to charitable organizations, creative arts, and innovative industries. Therefore, if you want to put your step further as an entrepreneur in any of the industries mentioned above, then this platform is best suited for you.
In fact, this platform has recently helped various companies to achieve success such as the Hong Kong free press, Hong, fundraising for Jacqueline Lai’s equestrian showjumping, and Hong Kong Martial Arts Living Archive. Do you want to find opportunities to collaborate with like-minded people and have a great community spirit, then look no other than FringeBacker.
- SparkRaise
The next platform of crowdfunding that you should know is SparkRaise. Well, this podium empowers individuals all across the world to join together and equip with some extraordinary skills and ideas in their life. You must be thinking, ‘how it will help you?’ Well, it is an online fundraising policy for people who are socially conscious and willing to share entrepreneurial skills, philanthropic, interests, and creativity.
How can Startupr help startup business owners?
There is no denying the fact that Hong Kong is known as the region’s leading financial hub. All thanks to its highly transparent, and robust regulatory regime for various financial services like- banking, insurance, retirement schemes, securities, and futures. So, if you are all ready to make a mark as an individual in the freest economy of the world, then don’t wait for anything, just be ready with your business plan and select a professional like Startupr who can help you in incorporating your startup.
You must be thinking ‘why Startupr?’ Well, the answer is pretty straightforward, Startupr will assist you to adhere to all the rules and regulations of the Hong Kong government. And help you in registering and incorporating your business in Hong Kong within a maximum of 3–5 working days. Our unique same day system will also assist you in scheduling your bank interview and documentation preparation. To know more details regarding the services and the packages, contact Startupr today!
This story is published in The Startup, Medium’s largest entrepreneurship publication followed by +430,678 people.
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