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Hong Kong - DOING BUSINESS


Local business incentives


Hong-Kong is open to foreign investments. Only certain sectors, such as communications or others considered as public interest, are closed to foreign investors. The Hong-Kong region's government encourages foreign investments especially projects aimed at introducing new or improved products and services. However, there are no direct allowances for foreign investments, since, according to the government, Hong-Kong already offers very attractive advantages, such as its infrastructures, its tax system, a skilled labour force and a strategic position.
Invest Hong-Kong provides assistance to corporations looking for direct investment opportunities in Hong-Kong.


Legal forms of companies


Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Sole Proprietorship   1 person   No minimum capital.   The sole entrepreneur is liable for the company's debts on his personal assets.   HK$ 2,250 for the annual registration.   No  
Company Limited by Guarantee   Minimum 2 partners.   No minimum capital.   Liability is limited to the amount of contributions forming the assets of the company.   HK$ 1,000 + HK$ 6 for every additional HK$ 1,000. (+ HK$ 1,150 for the annual registration).   Yes if the company is quoted on the stock exchange.  
Unlimited Company.   Minimum 2 partners.   No minimum capital.   Liability is unlimited and several.   HK$ 1,000 + HK$ 6 for every additional HK$ 1,000. (+ HK$ 1,150 for the annual registration).   Yes if the company is quoted on the stock exchange.  
Private Limited Company.   Minimum 2 partners.
Maximum 50 partners.  
In practice, minimum HK$ 10,000.   Liability is limited to the amount contributed.   HK$ 1,000 + HK$ 6 for every additional HK$ 1,000. (+ HK$ 1,150 for the annual registration).   No  
Public Limited Company.   Minimum 7 partners.   No minimum capital.   Liability is limited to the amount contributed.   HK$ 1,000 + HK$ 6 for every additional HK$ 1,000. (+ HK$ 1,150 for the annual registration).   Yes  
General Partnership   minimum 20 partners.   No minimum capital.   Liability is unlimited for the association's debts and obligations.   HK$ 2,250 for the annual registration.   No  
Limited Partnership.   Mminimum 20 partners.   No minimum capital.   At least, a partner must have an unlimited liability. Liability of other partners is limited to the amount contributed.   HK$ 2,250 for the annual registration.   No  


Registration and licensing procedures


Registration of a company in Hong-Kong is rather simple. There are not many procedures.



Foreign exchange control


Currency exchange controls are rather flexible in Hong-Kong. Hong-Kong dollar is freely convertible. Repatriation of capital is authorised.


Regulations concerning equity investment


A majority holding interest in the capital is legal, except in certain sectors.  


FDI inflows in Hong Kong




FDI inflows (millions US$) 2000 2001 2002 World rank
Foreign Direct Investments (F.D.I.) 23 775   9 682   13 561   11 / 196
Sources : UNCTAD Database FDI/TNC


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Last modified in December 2003
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