Networking between Ireland and The Pearl River Delta

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1 Networking between Ireland and The Pearl River Delta September 2015

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3 Welcome Message from Chairman I am delighted to welcome readers to our annual snapshot of business links between Hong Kong and Ireland. Our Chamber is a resource for Irish professionals, Irish companies and for Friends of Ireland, whatever your area of business. Our events and activities are open to all and just as our members are drawn from all business sectors, so too we are always open to new partnerships and ideas. The Chamber is delighted to be working closely with the Consul General and his team and in recent months we have supported a number of promotional events including Hong Kong s first St Patrick s Day Parade, the Bloomsday events with Robert Berry and the special screenings of A Terrible Beauty. We believe that there is plenty of scope to raise further the profile of Ireland in Hong Kong and look forward to helping to make this happen. In support of Young Professionals looking to develop their careers in Asia, we collaborated with the Consulate General to introduce the Irish Executive Mentorship Programme and are pleased that twenty five mentorships are currently underway. We are also working closely Niall Murray, Chairman of the Irish Chamber of Commerce of Macau, with which we have reciprocal membership, to enhance business for our members. On my own behalf and on behalf of the Board Members of the Chamber, I would like to recognise the support of our corporate sponsors and Ms. Maple Chu, who helps us on a day to day basis. I look forward to seeing you at a future event. Thank you, Ian Carroll 3

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5 Quick facts Government: Hong Kong is a Special Administrative Region of the People's Republic of China. Following British rule from 1842 to 1997, China assumed sovereignty under the 'one country, two systems' principle. The Hong Kong Special Administrative Region's constitutional document, the Basic Law, ensures that the current political situation will remain in effect for 50 years. The rights and freedoms of people in Hong Kong are based on the impartial rule of law and an independent judiciary. Head of Government: Cabinet: Legislature: Highest Court: Chief Executive Executive Council Legislative Council, 70 seats Court of Final Appeal Economy: Hong Kong's economy is characterised by free trade, low taxation and minimum government intervention. It is the world's 8th largest trading economy, with the mainland of China as its most significant trading partner. Hong Kong s economy depends primarily on trade in physical goods and on international services such as banking & finance, trade services, logistics and tourism (which accounts for over 94% of the territory s GDP). Hong Kong is a major service economy, with particularly strong links to mainland China and the rest of the Asia-Pacific region. Currency: Hong Kong dollar (pegged to US dollar) GDP: US$289.2 billion (2014) GDP per capita: US$39,900(2014) Real GDP growth: +2.5% (2014) Labour force: 3.87 million (2013) Geography: Total area: 1,104 square kilometers Land developed: less than 25% Country parks: 40% Population: Hong Kong's population was approximately 7.24 million in People of Chinese descent comprise the vast majority of the population, with foreign nationals comprising 8%.The Irish community is estimated by the Consulate to number from 3-5,000. Population density: 6,650 people per square kilometers Crude birth rate: 7.9 per 1000 Chinese descent: 91% Language: Chinese and English are the official languages of Hong Kong. English is widely used in the Government and by the legal, professional and business sectors. Trilingual professionals who speak English, Cantonese and Putonghua play a vital role in the numerous enterprises trading in Hong Kong or doing business with mainland China and Taiwan. 5

6 The Financial Services Sector in Hong Kong The financial service industry is one of Hong Kong s four pillar industries. The financial services sector employed 230,000 people in 2013, or 5.9% of the city s entire workforce. Replicate the rankings table on page 3 of this link: en.pdf In the banking sector, Hong Kong is one of the largest banking centres in the world with 70 of the world s top 100 banks having established a presence here. The majority of the world s largest banks have their regional operations for Asia ex Japan based out of Hong Kong. At the end of December 2013, Hong Kong had 156 licensed banks, of which 147 were foreign-owned. Assets under management (AUM) in the investment funds sector in Hong Kong reached HK$8,246 billion in Total hedge fund AUM in Hong Kong increased from US$9.1 billion in 2004 to US$87.1 billion in Q Hong Kong is a private equity leader in Asia, especially with Mainland China being the focus of private equity investment in the region. In 2012, the total capital under management in private equity funds in Hong Kong reached US$84 billion. Also, private equity funds in Hong Kong raised new funds of US$9.4 billion or 21% of the Asian aggregate. Hong Kong ranked second in Asia behind Mainland China in both aspects. As at 30 September 2014, there were 156 authorized insurers in Hong Kong, of which 93 were pure general insurers, 44 were pure long-term insurers and the remaining 19 were composite insurers. There were 2,462 insurance agencies and 650 authorised insurance brokers. In 2013, the total gross premiums of the Hong Kong insurance industry increased by 13.7% to $299.5 billion. Hong Kong is the location through which China s fund managers and insurance companies are internationalising their business. Several already have established funds in Ireland such as CSOP, Harvest and E Fund. Irish Funds (formerly the Irish Funds Industry Association) has an active network in Hong Kong having spun out of the Chamber and the Asia Pacific Ireland Business Forum. The Irish Funds group organises regular seminars and workshops on topical issues in the financial services industry. In January of this year, the group hosted Minister Simon Harris, the Irish Government s Minister with responsibility for International Financial Services. The Irish Funds group works closely with the Chamber and with the Consulate General to promote Ireland as a location for Chinese fund managers. Hong Kong is the gateway to 3.68 million high net worth individuals (HNWIs) in Asia Pacific, the region with almost one-third of HNWIs in the world. Private banking business of responding SFC-registered institutions grew to a record high of about US$346 billion. According to the HKMA, there were 45 HKMA-authorized 6

7 institutions offering private banking services in Hong Kong at the end of June Hong Kong has developed into the most comprehensive and competitive platform for offshore RMB business. In 2013, renminbi trade settlement handled by banks in Hong Kong exceeded RMB3.8 trillion. This reflects Hong Kong s role as the global hub for renminbi trade settlement, serving both local and overseas banks and companies. Hong Kong s stock market is one of the world s largest in terms of market capitalisation. At the end of December 2013, 1,643 public companies were listed on Hong Kong Exchanges and Clearing Limited. Total market capitalisation stood at HK$24,043 billion (US$3,101 billion), making Hong Kong the second largest stock market in Asia. Since 2012, Chinese companies have raised $43 billion in initial public offerings in the Hong Kong market, versus just $25 billion on mainland exchanges. More than anywhere else in the world, Hong Kong has also provided Chinese companies with access to global capital markets for bond and loan financing. Hong Kong accounted for two-thirds of foreign direct investment into China last year, up from 30% in Over the past five years, the Chinese government has made the city a testing ground for a range of financial reforms: the yuan s path towards acceptance as a global currency began in Hong Kong in 2009 with an experiment in trade settlement; Hong Kong is also home to the biggest dim sum bond market yuandenominated debt that is issued overseas; and a programme visa the Hong Kong stock exchange that will for the first time allow any foreign investor to buy Chinalisted shares. 7

8 The Tech Sector in Hong Kong Hong Kong is internationally recognised as a leading digital economy, consistently achieving top rankings in digital readiness and Internet access capabilities. Its infrastructure is one of the most sophisticated and advanced in the world, equipped with high speed fibres provided by 21 fixed network operators providing a wide range of innovative and advanced services available at relatively low prices. Currently, Hong Kong has nine submarine cable systems, 17 overland cable systems and operates eight satellites for external communications. Broadband networks cover nearly all commercial and residential buildings in the territory. As at October 2014, household broadband penetration rate is 82.9% and mobile penetration rate is 238.4%. The average peak Internet connection speed at 84.6 Mbps is the fastest in the world, and the average Internet connection speed at 16.3 Mbps is the 2nd fastest in the world. The Hong Kong Internet Exchange (HKIX) has been set up to facilitate intra-asia traffic, contributing to fast transmission, low telecommunications costs and low network latency. A recent report by PCCW demonstrates Hong Kong is one of the most advanced economies of the world in terms of data centres and the same applies in telecoms infrastructure, both of which are essential for any cloud or SASS based software offerings. According to the Data Centre Risk Index, Hong Kong has been ranked the safest Asian city for data centres three years in a row from 2011 to 2013 and IDC rated it as the most suitable location in Asia Pacific for setting up data centres. Cloud based systems also offer the potential of Hong Kong as a gateway into Greater China over time. 8

9 The Hong Kong Science and Technology Parks Corporation has provided 19 hectares of lands in industrial estates for data centre development. The Tseung Kwan O Industrial Estate now houses a cluster of 11 high-tier data centres, making it the largest data centre cluster in the Asia Pacific region. Hong Kong also has clear laws regarding data protection which provide good transparency around cloud based systems. Hong Kong has a pool of agile, skilled and multi-lingual ICT professionals. There are over 78,000 ICT professionals engaged in various business sectors; 37% of them are involved in software design and development (according to 2012 figures). Eight higher education institutions produce over 2,200 ICT graduates every year. Hong Kong itself provides a ready market for ICT companies, with 3,835 regional headquarters or offices based in the city and thousands of Hong Kong businesses located throughout the Greater Pearl River Delta (GPRD) region. Hong Kong is also located in the centre of Asia, so regional ICT projects can be effectively implemented and managed from a hub in Hong Kong, where a highly-skilled workforce is readily available. Many of the world s leading software services companies base their regional operations such as sales and marketing, finance, technical support and human resources in the city, mirroring their clients preference for Hong Kong as a regional base. Being an international financial centre and logistics and trading hub, there is strong and continuous demand for best-of-breed solutions to drive productivity, efficiency and reliability. Research and Development (R&D) Hong Kong has set up world-class technological infrastructure and facilities to help nurture the development of technology-intensive clusters. The Hong Kong Applied Science and Technology Research Institute (ASTRI), the Cyberport and the Hong Kong Science & Technology Parks are some of them. 9

10 Why Hong Kong? Hong Kong is strategically located for doing business in Asia. It is in the same time zone as Singapore, Malaysia, mainland China, and Taiwan. It is especially convenient as a gateway for mainland China. All of the region s key markets are within four hours flight time, and 50% of the world s population is within five hours flight time. Hong Kong applies the principles of common law by an independent judiciary respecting the rule of law and property rights. Thus, familiar common law principles apply in Hong Kong, which facilitates the understanding of the legal system. Hong Kong is frequently chosen as an international forum for dispute resolution and enforcement of contracts. Hong Kong enjoys a unique status with mainland China. Under the one country, two systems agreement, China promised not to impose socialist policies on Hong Kong for 50 years (i.e. until 2047). It is a city that is separate from direct communist rule, but is economically closely connected and integrated with mainland China. Hong Kong is one of the world s major trading and finance centres. It has frequently been ranked at the world s freest economies, and enjoys a relatively low rate of corruption. Setting up a company in Hong Kong is easy and inexpensive. There are no foreign ownership requirements in respect of shares in a Hong Kong company. Corporate and personal taxation in Hong Kong is quite low. Hong Kong adopts a territorial sourced basis of taxation. This means that only profits sourced or deriving from Hong Kong are taxed at 16.5 %. Bureaucracy is limited under a laissez faire government policy. Transport infrastructure, telecommunication links and business service support is highly developed, reliable and efficient. Employment of people from overseas is relatively easy due to Hong Kong s business-friendly immigration policies. Hong Kong s ICT infrastructure is one of the most sophisticated and advanced in the world, with a wide range of innovative and advanced services available at relatively low prices. 10

11 Ireland and Hong Kong Some success stories of Irish companies in Hong Kong: The Candle Company is home to Hong Kong s biggest range of candles, reed diffusers, home fragrance products, aromatherapy oils and accessories. Its wholesale business supplies candles, reed diffusers and accessories to most of Hong Kong s best-known hotels, bars and restaurants. FEXCO Merchant Services operates a wide range of innovative products and services, including Dynamic Currency Conversion, Commercial and Retail FX, Managed Business Solutions and Tax Free Retail Services, processing more than US$10 billion in transactions annually. FINEOS is a provider of group and individual software solutions for the global life, accident and health insurance industry. Intuition Publishing is a leading global knowledge management solutions company that provides services to corporate and public sector organizations either on a standalone product basis, or as an integrated learning and training solution. Monex Financial Services, operating in Hong Kong since 2003, provides dynamic currency conversion services. Morgan McKinley is a global professional services recruitment consultancy, that focuses in Hong Kong on banking & financial services, risk & compliance, accounting & finance, insurance, IT, HR, office support and sales & marketing. Ireland and the Pearl River delta Here are some success stories of Irish companies in the Pearl River delta: EPS Global is a distributor of specialized IT component and systems manufacturers whose products are used in high speed data and storage networks in respect of data generated by online and telecoms activity. EPS Global has four locations in mainland China, including Shenzhen. Lucas Promotion has offices in Ireland and Shenzhen, and offers professional manufacturing sourcing from audited and approved Asian factories. Services range from design to product development, manufacture and delivery. Ornua, the new trade name for the Irish Dairy Board Co-Operative, has its China base in Shenzhen. China was Ireland s second-biggest market for dairy in 2014 with food and drink exports worth over 500 million for the first time. PCH International is an Irish custom design manufacturing company that works with companies to develop, manufacture, package, and distribute products as well as manage supply chains. PCH's corporate headquarters are located in Cork, Ireland with operational headquarters in Shenzhen, China and U.S. headquarters 11

12 in San Francisco, California. PCH has additional offices in Hong Kong, Seoul and Tokyo. PPI Adhesive Products, with a head office in Waterford and offices in Shenzhen, produce a very extensive and sophisticated range of technical adhesive tapes, laminates and die-cuts for a wide range of applications in the electronic, aerospace, automotive and medical sectors. QEF Global has offices in Hong Kong and Shenzhen, and provides vendor inventory management and sourcing and procurement services in the electronics, healthcare and engineering sectors. 12

13 Hong Kong, Mainland China and the Pearl River Delta Hong Kong has increasingly close economic ties with mainland China, and in particular, the Pearl River Delta area (Shenzhen, Guangzhou, Dongguan, Zhongshan). Hong Kong is the most important entrepôt of the Chinese mainland. In 2014, 60% of re-exports were of China origin and 54% were destined for the Chinese mainland. Hong Kong is the second largest trading partner of the Chinese mainland after the US, accounting for 8.7% of its total trade in Hong Kong is the largest source of overseas direct investment in the Chinese mainland. By the end of 2014, among all the overseas-funded projects approved in the Chinese mainland, 44.5% were tied to Hong Kong interests. Cumulative utilised capital inflow from Hong Kong amounted to US$745.9 billion, accounting for 49.3% of the national total. The Chinese mainland, on the other hand, is a leading investor in Hong Kong. The stock of Hong Kong's inward investment from the Chinese mainland amounted to US$428 billion at market value or 31.9% of the total at the end of Hong Kong is also a key offshore capital-raising centre for Chinese enterprises. As of December 2014, 876 mainland companies were listed in Hong Kong, comprising H-share, red-chip and private companies with total market capitalization of US$1.9 trillion, or 60.1% of the market total. Since 1993, mainland companies have raised more than US$400 billion via stock offerings in Hong Kong. In November 2014, Shanghai Hong Kong Stock Connect was launched to establish mutual stock market access between Hong Kong and Chinese mainland. The development is a significant breakthrough in the opening of China s capital markets as well as a landmark in the internationalisation of Renminbi, which has also illustrated Hong Kong's strategic position in China s economic and financial reforms. The deep connection between Hong Kong and mainland China highlights the role of Hong Kong as the valve for investments into mainland China, and for mainland Chinese companies investing in the rest of the world. This has been supported by a number of favourable policies, such as the Closer Economic Partnership Agreement. CEPA covers three broad areas: Trade in goods: All goods of Hong Kong origin importing into mainland China enjoy tariff free treatment, upon applications by local manufacturers and upon the CEPA rules of origin (ROOs) being agreed and met. Trade in services: Hong Kong service suppliers enjoy preferential treatment in entering into the mainland Chinese market in various service areas. 13

14 Trade and investment facilitation: Hong Kong and mainland China agreed to enhance co-operation in various trade and investment facilitation areas to improve the overall business environment. For Hong Kong, CEPA provides a window of opportunity for Hong Kong businesses to gain greater access to the mainland Chinese market. Foreign investors that establish businesses in Hong Kong can leverage on the CEPA benefits and tap into the mainland Chinese market. The Hong Kong government regularly updates its research and findings in respect of the economic centre represented by Hong Kong and the Pearl River delta. Among the key findings of its most recent report, the Pearl River delta: is the world's fourth largest trading economy, bigger than Japan, France or South Korea. has a population of over 64 million people, larger than that of the UK, Italy or South Africa. has a GDP of US$1 trillion, larger than that of Indonesia, the Netherlands or Turkey. The integration of Hong Kong into the Pearl River delta economic region has been supported by a number of significant infrastructure project: The Hong Kong-Zhuhai-Macao Bridge consists of three parts, including the main bridge, boundary crossing facilities of Hong Kong, Zhuhai and Macao, and link roads of the three places. The project is of special strategic value in further enhancing the economic development of Hong Kong, Macao and the Western Pearl River Delta region (Western PRD). It will significantly reduce the cost and time for travellers and for the flow of goods between Hong Kong and the Western PRD, accelerating the economic integration of the Pearl River delta and its neighbouring provinces, and increasing its competitiveness. Construction of the project started in December The Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) will be 26-km long, running from the terminus in West Kowloon to Shenzhen, Dongguan and Guangzhou with significantly reduced journey time. More importantly, it will become part of the 16,000 km national high-speed rail network now being developed in mainland China, fostering closer economic ties between Hong Kong and the mainland. Upon completion of the railway, the travelling time from Hong Kong to Beijing and Shanghai will be shortened to about 10 and 8 hours respectively. Construction of the project has commenced for completion in

15 Business formation The private limited company A company may be incorporated in Hong Kong by submitting the prescribed forms, documents and fees to the Companies Registry and Business Registration Office. The Certificate of Incorporation and the Business Registration Certificate may be issued within four working days. The company legally exists from the date of incorporation. Business Registration Certificate: Every company incorporated in Hong Kong must obtain a Business Registration Certificate. The application must be made within one month from the start of business. If a company carries on a business using one or more business or trade names, a Business Registration Certificate is required for each such name. A branch business registration certificate is needed for each separate office of the company in Hong Kong. Structure: A private company incorporated in Hong Kong must have at least one director, one company secretary and one registered shareholder. One of the directors must be a natural person. The company secretary and the shareholders can either be natural persons or a body corporate. The company secretary must be resident in Hong Kong. Company name: Any company name identical to that of an existing company is not permitted. A company name may be in English, Chinese or both, but it is subject to restrictions on the use of certain words by the Companies Registry. Registered office: Every Hong Kong private limited company must have a registered office in Hong Kong for communications and notices. Any change of address of the registered office must be notified to the Registrar of Companies for public filing. Accounts and audits: The accounting records of the company must be audited for each financial year and approved by shareholders in an annual general meeting. There is an exemption for small companies. Share capital: There is no prescribed minimum or maximum share capital for any type of company in Hong Kong. A company can be formed with different types or classes of shares including ordinary, preference or deferred shares with special rights attached to them. These must be set out in the company s Articles of Association. If no separate share classes are designated, then the shares will be considered ordinary shares. 15

16 Annual general meeting: Every Hong Kong private limited company must hold an annual general meeting of its shareholders nine months after the end of its accounting reference period for that financial year. If the first accounting period exceeds twelve months, then the private company must hold an annual general meeting nine months after the anniversary of the company s incorporation. Annual returns: Annual returns must be delivered to the Registrar of Companies for registration within 42 days after the anniversary of the date of the company s incorporation. The representative office Foreign companies can have a business presence in Hong Kong by setting up a representative office. If a foreign company in Hong Kong has an office in Hong Kong, but does not enter into legally binding contracts in Hong Kong, then that office is referred to as a representative office. Limited activities: The activities conducted by a representative office are limited. A representative office cannot transact any business which creates legal obligations that would amount to the establishment of a place of business. Its activities are limited to liaison with offices in other parts of the world, and business representation, customer promotion and customer liaison in Hong Kong. Business registration: A foreign company that has a representative office must obtain a Business Registration Certificate from the Inland Revenue Department within one month from the establishment of its office. Taxation: A representative office is a costs centre. It does not incur profits or liability in Hong Kong, and may be exempted from filing profits tax returns by applying to the Inland Revenue Department. 16

17 Corporate taxation A corporation (or other entity) is resident if it is incorporated in Hong Kong or managed and controlled in Hong Kong. Generally only Hong Kong-source income is subject to Hong Kong profits tax. Profits tax is levied on the Hong Kong-source profits of businesses carried on in Hong Kong. In determining the source of profits, Hong Kong generally adopts the operations test, which involves identifying the activities that are most important in generating the profits and the place at which these activities are carried out. Expenses generally are deductible to the extent they are incurred in the production of profits that are chargeable to tax. However, domestic expenses, capital expenditure and losses, taxes and other expenses not incurred for the purpose of producing profits are not deductible. If a company's profits are derived from both Hong Kong and non-hong Kong sources, which are not assessable, expenses attributable to the non-hong Kong- source profits are not deductible. Dividends are exempt from profits tax. Capital gains are not taxable. However, gains on the disposal of assets may be subject to profits tax if the disposal constitutes a transaction in the nature of trade (a factual determination). Losses attributable to a business that earns profits subject to profits tax may be carried forward indefinitely and set off against future taxable profits of the company. Specific anti-avoidance rules counteract the purchase of a loss company for the sole or dominant purpose of using the company s losses. Losses cannot be carried back. Profits tax is levied at a rate of 16.5% where the company is carrying on business in Hong Kong and the relevant income is earned in or derived from Hong Kong. Withholding tax: There is no withholding tax on dividend distributions or interest payments from a Hong Kong entity. Royalties: Royalty payments made to a non-resident are deemed to be taxable in Hong Kong if made for the use of, or the right to use, intangibles in Hong Kong or outside Hong Kong where the royalty payments are deductible for profits tax purposes. The amount deemed taxable is 30% of the gross amount of the royalties paid, resulting in an effective rate of 4.95% (16.5% x 30%). Stamp duty on share transfer: Stamp duty on the transfer of Hong Kong shares is 0.2% of the value of the shares transferred, which is shared equally between the buyer and seller. An exemption may be available for an intragroup transaction if certain conditions are satisfied. Transfer pricing: There are limited provisions in the tax law governing businesses carried on with closely connected non-resident persons. Administration and compliance: 17

18 Tax year: The tax year starts on 1 April and ends on 31 March of the following year. The basis period of tax computation is the accounting year ended in the tax year. Consolidated returns: Hong Kong does not allow groups of companies to file consolidated returns and there is no group loss relief for members of a group of companies. Filing requirements: Tax returns are issued annually on the first working day of April for companies to report their profits in the accounting year ended in the previous tax year, which ends on 31 March. Companies whose financial years end between 1 December and 31 March normally are granted an extended period within which to file their tax returns. Provisional tax: Companies must pay a provisional profits tax for the following tax year at a rate of 16.5% of the current year's profits. This payment is credited against the final profits tax liability. Any excess payment will be refunded. 18

19 Personal taxation The Hong Kong personal income tax (salaries tax) covers all income arising in or derived from Hong Kong from an office, employment or pension. Interest income earned by an individual is exempt from tax in Hong Kong. Capital gains on financial transactions also are effectively exempt from tax. Residence: Foreign residents who visit Hong Kong for no more than 60 days in a tax year (from 1 April to 31 March of the following year) are not liable to salaries tax on their employment income. Employees who have already paid tax of substantially the same nature as Hong Kong salaries tax in any territory outside Hong Kong are exempt in respect of income derived from services rendered in that territory outside Hong Kong. Filing status: A married couple may opt for joint or separate assessment. Taxable income: Individuals are taxed on their total Hong Kong income from employment, less deductible expenses, charitable donations and personal allowances. The source of employment income is determined by a number of factors, including the place where the contract was negotiated and concluded and where it is enforceable; the residence of the employer; and where the salary is paid. Income from non-hong Kong employment is deemed to be sourced in Hong Kong if it is attributable to services rendered in Hong Kong. Taxable income includes commissions, bonuses, cost of living allowances, stock option gains, awards, gratuities, allowances (including those for education) and other perquisites derived from employment. Dividend income is not taxed, but gains from the exercise of share options are taxable. Deductions and allowances: Allowable deductions include mandatory contributions to a recognized occupational retirement scheme, self-education expenses, home loan interest, elderly residential care expenses and donations to approved charities. Rates: Personal income is taxed in Hong Kong at progressive rates. The marginal tax rates range from 2% to 17% (on chargeable income less personal allowances), with a cap at the standard rate of 15% (on chargeable income without deduction of personal allowances). There is no wealth, gifts or inheritance tax in Hong Kong Administration and compliance: Tax year: The tax year starts on 1 April of each year and ends on 31 March of the following year. Filing and payment: The Inland Revenue Department issues tax returns to individual taxpayers on the first working day of May each year. 19

20 Other key points Immigration Hong Kong s immigration laws are quite business-friendly. Sending employees from overseas to work in Hong Kong is relatively easy. A person entering Hong Kong for the purpose of taking up employment must apply for an employment visa. He will not be permitted to work in Hong Kong unless he has received the specific permission of the Director of Immigration for his intended employment. The submission of an application does not grant a right to work. The applicant must wait for the employment visa to be issued, and activated on his entry to Hong Kong. His application must be sponsored by a Hong Kong incorporated sponsoring entity. For an employment visa, non-local graduates must possess special skills, knowledge or experience of value that are not readily available in Hong Kong in order to work under the General Employment Policy. The General Employment Policy is quota-free and non-sector specific. Applicants may be favourably considered if the applicant has a good education background and has a confirmed offer of employment. Applicants and companies have to complete forms ID 990A and ID 990B respectively and then submit them to the Hong Kong Immigration Department. It normally takes four weeks to process the visa application for employment upon receipt of the required documents. Dependants of the applicants may bring their spouse and unmarried dependent children under the age of 18 to Hong Kong under the prevailing dependant policy. A dependant spouse is permitted to take up employment in Hong Kong, without the specific permission of the Director of Immigration. Bank accounts Opening a business bank account in Hong Kong is straightforward. The bank will require a full set of incorporation documents for the bank account application. The bank will also have additional documents and information it will require. Banks in Hong Kong normally require a minimum deposit. The amount varies between different banks. Banks typically require a face-to-face meeting with the beneficial owners or directors of the company opening the bank account. Hong Kong s anti-money laundering guidelines mean that banks may request identity and residence information for all beneficial owners of the company before they will open an account. Offices Central is considered Hong Kong s main business district. Leading names in the banking, accounting, legal and corporate worlds are found there. This makes office 20

21 space in grade one buildings in Central expensive. Alternative popular choices, still convenient to Central, include Admiralty, Wanchai, Causeway Bay, Sheung Wan and Quarry Bay on Hong Kong Island. Leases are typically for two to three years with an option to renew. They should always come with a full tenancy agreement. Outgoings will include cash security deposit, one-off fee to the property agent, management service charges, and Government rent and rates. Serviced offices are available across the city, allow for short-term leases and often provide tenants with a range of secretarial services. Virtual offices provide a mailing address and a receptionist, who will answer the phone on behalf of your company. 21

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24 Useful links english.gov.cn The Irish Chamber of Commerce of Hong Kong Consulate General of Ireland in Hong Kong Enterprise Ireland Invest Northern Ireland Irish Funds The Ireland Fund of China Hong Kong Gaelic Football Club The St. Patrick's Society Asia Pacific Ireland Business Forum Embassy of Ireland Beijing Portal to all PRC government departments Portal to Hong Kong government departments Investment promotion unit of the Hong Kong government Immigration Department Inland Revenue Department Companies Registry Hong Kong Trade Development Council Stock Exchange of Hong Kong Tourist information on Hong Kong