new garments business

i am planning to start a new garments business here in hong kong, is it profitiable and ok to start the business now.

Yes, setting up any type of business in Hong Kong is extremely easy (can be set up in about 11 days for around HK$5,500) and is often extremely profitable. This is mainly due to Hong Kong’s favourable regulations and policies towards businesses.


•Companies pay a standard rate of 17.5% on assessable ‘local’ profits.

•Businesses other than corporate entities pay a rate of 16% on assessable profits.

•In Hong Kong there are no capital gains taxes, no wealth tax, no estate duty, no withholding taxes, no sales taxes, no VAT, and no annual net worth taxes.

•Strong and legitimate common law legal system to protect business owner in relation to contracts and intellectual property rights.

•Profits remitted to a Hong Kong parent which represents the profitable disposal of its shareholding in a resident or non resident subsidiary are not assessed to tax in the territory.

•Individuals in Hong Kong are taxed at up to a maximum of 15% on employment income, but investment income or capital gains are not taxed.

•Strategically places at the foot of China for easy access into Mainland Markets.

•The 3rd ranked trading port by container in the world.

•Sound infrastructure and an ease to communicate in English.


If you do pursue establishing a garment business, Hong Kong is without a doubt the most favourable jurisdiction to do so. As for profitability, as anyone will tell you, it depends on how hard you work. Like any business, success depends on what you put into it. A client of mine has started a China/U.S. textile business 5 years ago and now places on average 8 million dollars in orders a year. On the grand scale, it is merely a drop in the bucket, but overall he makes a rather large amount of money on his recent start up company.


I specialize in advising small start-up business for expat and hong kong residents, I handle everything from the formation of your Hong Kong company, to drafting business agreements and other contracts to get your business up and running. Please do not hesitate to contact me at: company.formation.852@gmail.com for any advice relating to your start-up business. Would be glad to help.


Best regards,


Jonathon