As one of the world’s most ambitious economic integration efforts, China’s Greater Bay Area (GBA) is reshaping the landscape of innovation, trade, and connectivity in Asia and offers international companies a unique platform to grow, collaborate and scale across the region.
Structuring through Hong Kong
At the heart of this evolution is Hong Kong, a global financial centre grounded in common law, and renowned for its open markets and pro-business environment. Strengthened by a shared history and enduring partnerships, Hong Kong continues to be the natural bridge for British companies expanding into the Mainland of China and across Asia.
This sentiment was echoed by UK Government’s Department for Business and Trade in its Oct 2025 report, stating China as the UK’s fourth-largest trading partner, with foreign direct investment (FDI) from the UK reaching £8.9 billion by the end of 2023. Although representing only a modest share of the UK’s total outward FDI, it indicates untapped potential for British companies looking to invest and expand in the region.
For many international investors, Hong Kong offers an ideal entry point into the Mainland of China – combining efficient company registration, robust legal protections, and attractive tax arrangements.
Setting up a company in Hong Kong is fast and straightforward, typically completed within days. When structuring a business in Hong Kong, companies typically choose among three main options:
- Private Limited Company: The most popular choice, offering operational flexibility and access to Hong Kong’s extensive network of tax treaties. As a separate legal entity, it can hold equity in Chinese subsidiaries and efficiently repatriate profits from China, particularly under arrangements such as the Mainland–Hong Kong Double Taxation Agreement (DTA) and the Mainland-Hong Kong Closer Economic Partnership Arrangement (CEPA).
- Branch Office: Allows a foreign company to operate in Hong Kong without forming a separate legal entity. While this structure offers direct control and ease of setup, it is generally less tax-efficient and exposes the parent company to full liability – making it more suitable for support or liaison functions rather than investment holding.
- Representative Office: The simplest option, ideal for market research and exploration. It cannot conduct profit-generating activities but serves as a low risk entry point before committing to a full company setup.
The ultimate structure depends on a company’s stage of development, strategic goals, and operational needs. Partnering with professional service providers can help businesses determine the most suitable path and position them for long-term success.
The ultimate structure depends on a company’s stage of development, strategic goals, and operational needs. Partnering with professional service providers can help businesses determine the most suitable path and position them for long-term success.
A supportive jurisdiction for global business
Hong Kong’s low and simple tax regime is a key attraction for global investors. Profits sourced outside the city are usually tax-exempt, with a standard corporate rate of 16.5% and there is no VAT, capital gains tax, or withholding tax on dividends.
Meanwhile, recent updates to the Foreign-Sourced Income Exemption (FSIE) regime align Hong Kong with global tax standards, while the upcoming OECD Global Minimum Tax (Pillar Two) will ensure large multinationals meet a 15% minimum effective rate without undermining the city’s competitiveness.
Its pivotal role in the GBA is further enhanced by more than 50 double taxation agreements across Asia Pacific and Europe, facilitating the free flow of capital. Meanwhile, partnership frameworks such as the CEPA and cross-border financing channels enable businesses to operate seamlessly across borders, capitalise on the Chinese market opportunities and reduce withholding tax burden.
To attract global talent and investment, Hong Kong offers programs like the Top Talent Pass Scheme (TTPS), granting two-year visas to high-earning professionals and graduates from top universities without requiring a job offer. The BUD Fund also provides up to HKD 7 million per project to support Hong Kong companies in expanding, upgrading, and building their brands in the Chinese market and overseas.
Such measures reinforce Hong Kong’s role as a gateway to Chinese Mainland and a leading base for global business expansion.
Expanding into China via the GBA
For UK enterprises aiming to enter the Chinese market, the establishment of a holding company or regional headquarters in Hong Kong represents a strategic and effective approach. This Hong Kong-based framework functions as a foundation for creating wholly foreign-owned enterprises (WFOEs) in mainland cities such as Shenzhen, Guangzhou, and Zhuhai. The “Hong Kong + Mainland” dual entity model enables businesses to enhance tax planning, facilitate capital flows, and benefit from cross-border cooperation within the GBA.
The GBA offers a dynamic bridge to the Mainland of China while also offering a robust economy, world-class infrastructure, and a focus on high-growth sectors such as technology, fintech, biotech, advanced manufacturing, and innovation-driven services.
What distinguishes the GBA are its streamlined procedures and supportive policies in cities like Shenzhen, which facilitate faster market entry and greater operational flexibility.
Several GBA ‘zones’ offer targeted incentives to attract international businesses. Qianhai – a commercial development in Shenzhen – for example provides preferential tax rates, simplified customs procedures, and support for financial and tech enterprises. Similarly, Hetao offers grants, R&D subsidies, and talent attraction programmes to promote innovation and cross-border cooperation. These initiatives, combined with the region’s economic dynamism, make the GBA a compelling choice for companies seeking to expand in China efficiently and competitively.
Choosing the right partner for sustainable growth
With its strong economy, regulatory support, and targeted incentives, the GBA provides an ideal launchpad for companies seeking a foothold in China while tapping into one of Asia’s most dynamic business regions.
Selecting the right partner to support these ambitions is essential. Hawksford, with extensive experience in international business expansion, is dedicated to fostering reciprocal investment between the UK and China. Our expertise in compliance, corporate governance, and financial reporting, combined with a comprehensive understanding of market trends in the Greater Bay Area, enables us to guide businesses through complex environments, identify regional opportunities, and advance sustainable growth.
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