Why are there so many Web3 companies in Hong Kong? Analyzing the overall attractiveness of geography, policies and capit

Why has Hong Kong become a gathering place for Web3 companies?

Due to its unique geographical location, historical background and “one country, two systems” policy, Hong Kong has long been a core hub for international finance, commerce and shipping. This background has enabled it to have a sound financial system, a robust legal system and a transparent judicial system, providing an excellent business environment for enterprises. In recent years, with the Hong Kong government’s focus on and support for Web3 technology, Hong Kong’s attractiveness to Web3 companies has greatly increased.

Core advantages of Web3 companies choosing Hong Kong

1. Geographical and Institutional Advantages

• Geographical location : As an important gateway to the Chinese mainland and Southeast Asian markets, Hong Kong connects major economies in Asia and is an ideal springboard for global companies to enter the Asian market.

• Institutional guarantee : Hong Kong relies on the “one country, two systems” policy and implements a free economic system. The Hong Kong dollar is pegged to the US dollar and there is no foreign exchange control. This openness and autonomy make it a central platform for international trade and investment and financing.

2. Capital Market and Legal Support

• Capital Market : Hong Kong’s capital market is highly mature, offering a variety of financing options, and funds can flow freely, making it convenient for Web3 companies to operate global funds.

• Legal protection : A solid legal system and a transparent judicial system create an environment for enterprises to operate in compliance with regulations, ensuring their long-term development.

3. Tax advantages

• Low tax rate : Hong Kong has a simple tax system and low tax rates. For example, the first HKD 2 million in profits is subject to a profit tax of only 8.25%, and the excess is 16.5%, which is much lower than many regions. Shareholders are exempt from tax on dividends from companies, while individuals in mainland China are subject to a 20% dividend tax.

• Salary tax and stamp duty : Salary tax is levied at a progressive tax rate of 2%-17%, or calculated at a standard tax rate of 15%. The stamp duty for equity transfer is only 0.1% of the transaction amount, which reduces the cost of equity flow.

4. Talent Policy The Hong Kong government has launched the “Technology Talent Immigration Scheme” to attract global technical talents to engage in Web3-related research and development. This has solved the problem of high-end talent shortage for enterprises and promoted the construction of an innovative ecosystem.

5. Government Support The Hong Kong government has adopted a number of policies in recent years to promote the development of Web3:

• Released a virtual asset policy declaration, demonstrating an open attitude towards encryption technology.

• Implement a licensing system for virtual asset service providers (VASPs) to provide a clear regulatory framework.

• Approved the issuance of Bitcoin and Ethereum spot ETFs to encourage the application of blockchain technology. In addition, government-supported institutions such as Cyberport actively provide funds and resources to start-ups, further stimulating the formation of the Web3 ecosystem.

The convenience of registering a Hong Kong Web3 company

• Low registration threshold : no minimum registered capital or actual capital verification is required, and the company name and business scope can be freely chosen.

• Various company forms : including sole proprietorship, partnership, private limited company, branch, etc., to meet the different needs of enterprises.

• Simplify the registration process : Provide “one-stop” registration and business registration services, convenient and efficient.

Summarize

Hong Kong has become a hotbed for the development of Web3 companies with its geographical advantages, mature capital market, relaxed tax policies, legal protection and positive government attitude. From policy support to talent introduction and regulatory innovation, Hong Kong provides a solid development platform for Web3 companies and establishes its important position as a global Web3 innovation center. Therefore, more and more Web3 companies choose to land and develop in Hong Kong, promoting prosperity and breakthroughs in this field.