Hong Kong: The Right Place. The Right Time.

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Agenda

• RIGHT PLACE – Hong Kong’s Enduring Advantages

• RIGHT TIME – New Opportunities

• How InvestHK can help

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RIGHT PLACEHong Kong’s Enduring Advantages

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One Country, Two Systems

All Hong Kong’s economic freedoms continue:• Hong Kong negotiates and signs its own economic &

trade agreements and is a full and separate member of WTO & APEC

• Gov commitment to open markets and free trade under the principle “Big market, small government”

• The World’s Freest Economy according to US-based Heritage Foundation for 15th consecutive year

• Hong Kong is an integral part of China

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New Markets & Customers

Easy access to high-growth economies

High demand for foreign products & services

Low-Cost Production & Sourcing Major production centres

in China, Vietnam etc.

Hong Kong’s Strategic Location:Gateway to China & Heart of Asia

Half the world’s populationwithin

five hours flight time!

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Asia’s Leading City for International Business

3,580 regional headquarters and officesSource: 2009 Annual Survey of Companies in Hong Kong Representing Parent Companies Located outside Hong Kong, Census & Statistics Dept, HKSARG

18

526

447

213

127 123 104

49 6191

51 46

138

44

308

192240434654667496

115

224

289

146

Regional Headquarters

Regional Offices

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Cosmopolitan Lifestyle & Easy Living Environment

• Countryside – 40% land country parks – mountains and beaches

• Sports – mix of Asian and Western sports, plus calendar of international events

• Arts/culture – world-class venues; major events and annual festivals

• Food – local, regional, international restaurants/supermarkets

• Education – Over 50 international schools• Healthcare – private doctors/clinics, plus major

teaching hospitals• Safety – One of the lowest crime rates• Religion – all faiths welcome

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Stable, Low & Simple Tax System

Forbes Tax Misery Index 2009

Hong Kong 3rd from bottom, score = 41.5

Singapore eight positions higher, score = 78.5

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9

Hong Kong Mainland China

Corporate tax 16.5% maximum rate Standard rate = 25%High/New Tech Enterprises (HNTE) = 15%HNTE some regions 0%

Income tax 15% maximum rate(salaries)

5 - 45%

VAT/GST Nil 17%Certain exemptions apply

Income not subject to tax

Offshore income; dividends; capital gains; tax exemption for interest income from deposits placed with authorised financial institutions

All income subject to tax (certain preferential tax treatments for foreign-invested enterprises)

Withholding tax Nil for dividends, management fees, interest, rent5.25% for royalties

10% for dividends 10% for royalties10% for interest 10% for capital gains

Hong Kong Budget 2009-10Corporate Tax Cut to 16.5%; Income Tax Cut to 15%

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RIGHT TIMENew Opportunities

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• Financial Services

• Business and Professional Services

• Trade & Logistics

• Tourism

Four Pillar industries

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• Testing and certification

• Medical services

• Innovation and technology

• Cultural and creative industries

• Environmental industry (in particular solar energy and R&D)

• Educational services

Other Opportunities:

• Wine

• Biotechnology

Opportunities in 6 New Areas:

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Indian business community in Hong Kong

• India trade with Hong Kong was over US$14.15 billion in 2008

• Over 1500 Indian companies’ RHQs, regional offices or local offices

are based in Hong Kong

• In terms of Hong Kong trade, India is one of the Hong Kong's largest

trading partner

• Hong Kong is home to more than 45,000 Indian citizens.

• India companies in Hong Kong over the following sectors & many

more:- airlines; banks; logistics; technologies; consultancy; non-

metallic mineral manufacturer; telecommunication equipment;

jewellery; and machinery.

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InvestHK : How can we help?

• Support overseas, Mainland and Taiwanese businesses to set up and expand in Hong Kong

• Our aim is for companies to make an informed choice and put the right part of their business in Hong Kong for the right reasons in order to be more competitive and make more profit

• Provide free advice and customized services to help your business succeed

The Department for Foreign Direct Investment

Relevant up-to-date

information

Facilitation of set-up /

expansion

Matchmaking and

networking support

Public relations

support for launch /

expansion

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Thank you! Let’s keep in touch!

Mr. Narendra Sarawgi

Consultant (Bengaluru)

Email: nks@investhk.com.hk

Tel: +91-80-64516669

Mr. Siddharth Sarawgi

Consultant (Bengaluru)

Email: sid@investhk.com.hk

Tel: +91-80- 64516669