51 Reasons Hong Kong is a Great Place to Do Business in 2020

Hong Kong has been a bastion of free trade and economics for decades, and its inherent advantages still ring true today. Transparent and easy company registration, low tax rates, excellent infrastructure, and its close relationship with the world’s second largest economy in China are just a few things in Hong Kong’s economic arsenal.

However with the rise of the global pandemic, Hong Kong, like all parts of the world, has taken an economic hit. Thankfully, the Hong Kong Government has been supremely proactive in its approach to combating any potential downturns from COVID-19, through a range of schemes and funds designed to energetically stimulate the economy. These measures constitute a Government investment of HK$287.5 billion (US$36.9 billion) — about 10% of GDP.

Related Read: How Hong Kong’s government supports local businesses amid COVID-19 »

With most of the world in relative economic chaos, we go into 51 reasons why Hong Kong is still a prime location for business in 2020.

HK$10 Billion Anti-Epidemic Fund

1. One off HK$80,000 (US$10,320) grant to each licenced travel agent in Hong Kong.
2. One off HK$200,000 (US$25,800) grant to each eligible factory canteen and restaurant.
3. One off HK$80,000 (US$10,320) grant to each eligible licenced food factory, light refreshment restaurant, fresh provision ship, and siu mei and lo mei shops. 
4. One off HK$5,000 (US$645) grant to each licenced hawker stand.
5. Up to HK$80,000 (US$10,320) grant to each eligible guesthouse.
6. A total fund of HK$5.6 billion (US$722.5 million) to be issued amongst eligible retailers
7. A total fund of HK$3.23 billion (US$416.7 million) to be issued amongst eligible transport operators.
8. A total fund of $1.02 billion (US$129 million) to be issued to the convention and exhibition industry.
9. A total fund of HK$150 million (US$19 million) to be issued to the arts and culture sector. 
10. A total fund of HK$380 million (US$49 million) to be issued as a six-month rental waiver for tenants and start-ups.
11. A total fund of HK$90 million (US$12 million) for subsidies to training bodies. 
12. Proposed subsidy of HK$50,000 (US$6,400) for eligible contractors and subcontractors to enhance hygienic controls on site. 
13. A HK$1,000 (US$129) payment for each of 240,000 construction workers, and HK$20,000 (US$2,600) for each of 400 SME consultants for hygiene control measures. 

HK$120 Billion Hong Kong Business Support Fund

14. Small and Medium Enterprises (SMEs) can receive a 100% government guarantee on low interest loans, to the value of six month’s worth of rent and wages, to a cap of HK$4 million (US$513,000).
15. Taxes on profits for 2019/20 will be reduced by 100% to a cap of HK$20,000 (US$2,580). 
16. Rates for business/non-domestic properties will be waived for all of 2020-21, with a cap of HK$5,000 (US$645) per quarter for Q1 and Q2, and HK$1,500 (US$193) per quarter for Q3 and Q4.
17. Business registration fees will be waived for 2020-21.
18. Registration fees annual tax returns for companies waived for two years.
19. A four month, 75% subsidy for electricity costs to all business/non-domestic properties, with a cap of HK$5,000 (US$645) per month.
20. A four month, 75% subsidy for water and sewage costs to all business/non-domestic properties, with a cap of HK$20,000 (US$2,580) per month.
21. A six month subsidy on rent for local Hong Kong recycling ventures.
22. Six months of reduced rent for tenants of government properties.
23. A six month reduction of rent and fees for cruise lines in the Cruise Terminal.
24. A six month, 50% reduction in fees for hiring civic centres.
25. Proposed HK$10,000 (US$2,100) cash payout to Hong Kong permanent residents. 

HK$137 Billion Job Preservation Fund

26. An HK$80 billion (US$10.4 million) Employment Support Scheme to help employers pay six months worth of wages, capped at HK$9,000 (US$1,2000).
27. A total fund of HK$21 billion (US$3.8 million) for 16 types of support across various sectors and industries.
28. A total commitment of HK$30 billion (US$3.9 billion) to enhance the existing SME Finance Guarantee Scheme.
29. Financial support to help the Mass Transit Railway Corporation (MTR) allow a 20% discount on fares.
30. Tax payments to be deferred for three months.
31. The extension of deadlines for project completion and payment of government contracts. 
32. One off or six month subsidy for the transport sector.
33. One off or six month subsidy for local marine vessels.
34. 50% discount on rental for public car parks and harbourfront events leased from the Government Property Agency (GPA) for six months.
35. 50% discount on rental for catering establishment and retail stores leased from the GPA for six months.
36. 50% discount on rental for catering public car parks, catering establishments and retail stores leased from the Leisure and Cultural Services Department (LCSD) for six months.
37. 50% discount on the hire of civic centre facilities from the LCSD for six months.
38. Salary tax, profit tax, and personal assessment can apply for paying taxes in installments without a surcharge. 

Support From Hong Kong Banking Industry

39. The continuation of delayed loan repayments and reduced fees for SMEs. 
40. Extended repayment periods of loans for the import/export sector. 
41. Repayment holidays or principal moratoriums for the transport sector.
42. Measures to increase bank liquidity for flexible loans to SMEs.
43. The release of HK$200 billion (US$26 billion) in regulatory reserves for lending. 
44. Automatic extension of loan tenors or principal repayment holidays for qualifying SMEs — no application required.
45. Extension of repayment period of trade financing for SMEs in the import/export sector who have cashflow pressure due to disrupted supply chains.

Support for the Aviation Sector

46. Full five month waiver for parking and airbridge fees for passenger aircraft. 
47. Full four month waiver for commercial service counter fees, in terminal service fees and fees paid by cross border transport companies. 
48. 40% four month reduction in fees for passenger aircraft landing charges.
49. Rental and franchise fees for offices,and aviation support services within the terminals reduced by 10 to 50%. 
50. 70%, three month discount for rental of airport shops and restaurants. After June, the discount shall be 50%.
51. A HK$50 million (US$6.5 million) training allowance for airport staff on no-pay leave. 

Conclusion — Hong Kong Remains Not Only Viable, but Attractive

We actually had to cut down Hong Kong’s economic support measures down to 51 as there are a lot more mechanisms the government has put in place to support workers and businesses of all sizes. 

It is absolutely clear that the Hong Kong Government is serious about installing powerful measures to keep the economy thriving — and it should instill confidence in any investor that they are ahead of the global pack in terms of safeguarding the future. 

HKCR remains dedicated to the growth of Hong Kong, and their expert teams for qualified accountants, bankers, and insurance brokers are all still working hard to support businesses.

If you have any questions about how you can incorporate a Hong Kong business or expand, please do contact us — it’s both our job and pleasure to assist.