Doing Business in Hong Kong
Hong Kong is a cosmopolitan city, well known for its business-friendly environment, rule of law, free trade and free flow of information, open and fair competition, well-established and comprehensive financial networks, superb transport and communications infrastructure, sophisticated support services, and a flexible labour market with a well-educated and highly motivated workforce. Hong Kong has a fully convertible and stable currency, and a simple, low-tax system.
Hong Kong is the natural gateway for trade and investment in Mainland China. With its international outlook and its status as the region's premier business hub, Hong Kong serves as an ideal base for international businesses looking to tap the vast opportunities in China and other parts of Asia.
Hong Kong signed a unique free trade agreement with Mainland China, the Closer Economic Partnership Arrangement (CEPA), in 2003. It is an open and developing free trade agreement. Adopting a building block approach, the Mainland and Hong Kong have continuously expanding the scope and content of CEPA over the years. It covers four broad areas: (1) Trade in Goods, (2) Trade in Services, (3) Investment, and (4) Economic and Technical Cooperation. Because CEPA rules are nationality-neutral, companies from around the world can enjoy the same benefits as local Hong Kong firms if they set up business in Hong Kong or partner with Hong Kong companies to fulfil the CEPA rules.
Overseas entrepreneurs, small and medium-sized enterprises and multinationals, who are considering to set up an office or expand their existing business in Hong Kong, are welcome to approach InvestHK — a government department which offers free advice and services to support companies from the planning stage right through to the launch and expansion of their business.
More information about doing business in Hong Kong can be found here.
Trade relations between Hong Kong and Korea
Hong Kong and Korea enjoy a close trading relationship. The Investment Promotion and Protection Agreement (IPPA) was signed on 30 June 1997 to further strengthen the trade and economic relations between Korea and Hong Kong. The Agreement came into force on 30 July 1997.
In 2017, Korea was Hong Kong's 6th largest trading partner. Reciprocally, Hong Kong was Korea's 5th largest trading partner in 2017.
More information about the trade relations between Hong Kong and Korea can be found here.
Free Trade Agreement Transhipment Facilitation Scheme
Hong Kong Customs launched the Free Trade Agreement Transhipment Facilitation Scheme (FTA Scheme) from 20 December 2015 to further facilitate consignments passing through Hong Kong to enjoy tariff reduction under the Free Trade Agreements (FTAs) signed by the Mainland.
It is stipulated in the FTAs that consignments routed through a third place can also be regarded as direct consignments/transport and are qualified to apply for tariff reduction under certain circumstances, in particular, if they remain under the control of Customs or designated authorities in the third place.
The FTA Scheme covers transhipment cargo in Hong Kong heading for the Mainland as well as heading for Korea under the China-Korea Free Trade Agreement. It will provide traders with Customs supervision service and issue Certificate of Non-manipulation to certify transhipment cargo that have not been undergone any further processing during their stay in Hong Kong.
More information about the FTA Scheme can be found here.