Multinational Companies (MNC) Companies in Hong Kong
As the world’s freest economy and one of the important economic powerhouses in Asia, Hong Kong is ideal to be the regional headquarters for multinational companies (“MNC”) across the globe. According to data published by the Census and Statistics Department, in 2018, Hong Kong was home to 1,530 regional headquarters for MNC Companies in Hong Kong. Some of these regional headquarters are the hub for the Asia-Pacific Region, while others serve as the hub for the Greater China region. Among the number of regional operations by foreign-owned companies in Hong Kong, 290 are American companies headquartered in Hong Kong.
Why MNC Companies Chose Hong Kong?
Hong Kong thrives as the most sought after investment spot due to its vibrant business environment. Indeed, Hong Kong is a great country for anyone looking to start an offshore business. There are several reasons why global investors favour Hong Kong as their regional headquarters. In comparison to the neighbouring countries in Asia, Hong Kong offers stability and worldwide recognition where it is often viewed as a global leader in banking and business.
The low tax in Hong Kong has always been the key factor that attracts international companies or MNC companies. The Hong Kong government keeps taxes at a relatively low rate with its simple tax regime. Other than the low tax regime, Hong Kong’s open and externally orientated economy is another factor that attracts global companies to do business in the country.
In Hong Kong, a foreigner is allowed to own 100% of a Hong Kong company. Foreigners are able to be the sole director and shareholder in a Hong Kong company where there are no requirements to be a local resident or a specific nationality. Besides, Hong Kong encourages the growth of start-ups and the city is growing very fast to be the hub of Fintech start-up hub.
The list of successful Hong Kong MNC companies is endless, with some of the most prominent names:
- AXA Asia – one of the top global insurers with its regional office, AXA Asia, in Hong Kong.
- BNP Paribas – a French international banking group that is ranked as the world’s eighth largest bank by total assets.
- Credit Suisse – a Swiss investment bank and financial services company.
- Estée Lauder – a multinational manufacturer and marketer of skin care, makeup, fragrance, and hair care products that is based in New York City.
- FedEx – an American multinational courier delivery services company.
- IBM – a multinational information technology company based in New York with a global presence in 170 countries.
- ICBC – a Chinese banking company that is also both the largest bank in China and in the world by total assets.
- J.P. Morgan – a renowned American investment bank based in New York City.
- Goldman Sachs – a leading international investment banking, securities and investment management firm headquartered in New York City.
- Prudential – one of the global insurers as well as an American Fortune Global 500 and Fortune 500 company with its regional office in Hong Kong.
Hong Kong will be on the top of the list whenever global investors are considering setting up their businesses abroad. On top of the reasons listed above, Hong Kong is the best gateway to enter an international market and investors would benefit from its tax-friendly business environment. Hong Kong is definitely one of the best cities for establishing and doing business!