The foundation of Hong Kong’s business scene and the vast majority of all companies based are small and medium enterprises (SMEs). Approximately 98% of companies of Hong Kong are classified as SMEs. SMEs have played a crucial role in the economic development of Hong Kong.
SME owners all over Hong Kong have become interested in expanding its business operations overseas. The countries to which SMEs of Hong Kong primarily expand when choosing to do so are China, the United States, Singapore, Taiwan, and Japan. Many SME owners of Hong Kong believe that these countries are full of opportunities for their business and thus allow them to experience much success.
The number of SMEs of Hong Kong which have expanded abroad continues to grow. The most recent data shows that 53% of SMEs have either expanded to another country or intend to do so.
Advantages of Overseas Expansion
Not reliant on a single economy
In times of economic downturn for Hong Kong, other countries may not be experiencing such circumstances. This allows the business to continue to prosper even if operations in Hong Kong are not profiting.
Reduced operational costs
As an economic hub in Asia, the cost of running a business is high. However, you could expand to a country with lower operating costs, thus helping to save money with the reduced costs.
Export Marketing Fund Grant
It is for these reasons that the government of Hong Kong has created the SME Export Marketing Fund (EMF). The primary purpose of the EMF is providing financial assistance to SMEs which participate in export promotion activities. In this way, the SMEs of Hong Kong are encouraged to expand business activities to markets beyond Hong Kong.
- One grant for each export promotion activity.
- Each grant is for either 50% of total approved expenditure or HK$50,000, whichever is lower.
- No limit on number of applications which may be submitted by any business
- However, each business may receive a total of HK$200,000 from EMF grants in total.
Regardless of whether you plan to expand it abroad, if you are interested in owning and running a Hong Kong company of your own. We at Paul Hype Page & Co are able to serve your needs in this regard. Our incorporation experts will work with you in order to facilitate the establishment of your new Hong Kong-based company.